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What happens when your rental home is being foreclosed?

C

Casawi

Platinum Member
My dad and I are renting this condo for more than 2 years now, people came in this morning knocking on the door saying the owner has not been paying his mortgage for over a year now. They issued some papers (I have not looked at them yet), basically saying the condo owner have 30 days to respond before the condo is foreclosed.
Last I talked to the buyer he asked me if I can send him rent a week early because he was going to Kenya to stay with his mother for a month because his father has just past away.
He owes $178K on the condo with a $1142 payment, the sad news for him is there are 3 condos on that street for sale. Specifically the one across the street that I looked was selling for $95K with 3 bdr facing the pawn. The one we are renting is just a 2 bdr.

Anyways I am not really sure what my next move is, probably attempt to contact the landlord via email and inform him.
My other question is, if this things goes to foreclosure. Do we as renters have any rights or privilege in buying this condo? can I work with the bank of some price ? or get a chance to give the bank an offer.
Sorry if these questions are dumb, I don't really know. I am certainly interested in buying it for $70-$80K. With a 10K down I figured my payment will be about what I pay for rent right plus insurance and taxes. Maybe a total payment of $900.
Any advise how to handle this would be appreciated.

My dad is suggesting to no longer pay him rent and just walk away from the whole thing, and look into the condo's down the street. Our lease at the current condo is up.


Update:
Well, I was wrong all along. The guy gets back from his trip and calls me saying where is my rent ...lol. He is going to work it out with the bank I guess, and he isn't interested in selling at all. So I just deducted the water reconnect fee from rent and mail it to him.
I had every reason to believe he fled, but he proved me wrong.
The service papers say he has to pay all past due payments which amounts to $7K... maybe his father left him some money in Kenya or something, but I kind of felt bad assuming he lied about everything.
 
LOL....sounds like the owner is getting ready to bolt permanently.

You can talk to the bank and see if they have any interest in a short sale but I'm doubting you'll get a price as low as you're looking for. In the event of foreclosure as a renter you have no real recourse and will probably have to vacate the property.

Personally I'd go with your dad's plan.
 
Is this your condo in Morocco (or wherever you're from), or in the US?

Edit: Nevermind, US apparently
 
Originally posted by: K1052
LOL....sounds like the owner is getting ready to bolt permanently.

You can talk to the bank and see if they have any interest in a short sale but I'm doubting you'll get a price as low as you're looking for. In the event of foreclosure as a renter you have no real recourse and will probably have to vacate the property.

Personally I'd go with your dad's plan.
Click to expand...

His a CPA with a decent job I believe. I doubt he wants to leave all of this for Kenya...lol
 
As a renter they are legally obligated to continue your lease according to prior threads on ATOT. I have no idea if people were giving bogus advice in those, though.

I really doubt you will get it for less than half the amount owed. Maybe $120 if they bank is really pessimistic.
 
Originally posted by: torpid
As a renter they are legally obligated to continue your lease according to prior threads on ATOT. I have no idea if people were giving bogus advice in those, though.

I really doubt you will get it for less than half the amount owed. Maybe $120 if they bank is really pessimistic.
Click to expand...

The lease is up. The bank will want them out.
 
Originally posted by: torpid
As a renter they are legally obligated to continue your lease according to prior threads on ATOT. I have no idea if people were giving bogus advice in those, though.

I really doubt you will get it for less than half the amount owed. Maybe $120 if they bank is really pessimistic.
Click to expand...

There is no way that would sell for $120K, no way. The one for $95K been up for sale for over a year, and it has 3 bdr instead of 3 and facing the pawn.
I stunned how the prices on these condos dropped. I am thinking if we buy, it is not going to drop value much more than say $90K. They are nice condos built in the last 5 years, next to highway and elementary school.
 
that sux dude...you guys should start packing though...once the foreclosure is finalized, you guys will be out on the streets.

How much are they asking for the other condos that are for sale on your street? that is probably a better option...you might try to let the mortgage company know how much other condos in the area are selling for to see if they will adjust what price they are willing to accept for it though...good luck...
 
Now the question is, do we move out... or wait for the bank to tell what to do?
Someone suggested to my dad, not to pay rent for a while until the bank asks us to move out?
 
Originally posted by: spacejamz
that sux dude...you guys should start packing though...once the foreclosure is finalized, you guys will be out on the streets.

How much are they asking for the other condos that are for sale on your street? that is probably a better option...you might try to let the mortgage company know how much other condos in the area are selling for to see if they will adjust what price they are willing to accept for it though...good luck...
Click to expand...

I don't live with my dad, he lives in the condo alone. I rent with him and handle all of his bills for him... his English is poor still.

Yeah once I get the documents I am going to call the bank and see what's up.
 
Originally posted by: Casawi
Now the question is, do we move out... or wait for the bank to tell what to do?
Someone suggested to my dad, not to pay rent for a while until the bank asks us to move out?
Click to expand...

your dad needs to be prepared when the sheriff shows up at the door with an eviction notice...you need to look at papers to see what deadlines are mentioned...
 
Check with local/state laws.

But i woudl hold rent back until given notice he is up to date. Don;t spend it just put it in a bank account and send a certified letter detailing it.
That and unless you sue you will probable not get your deposit back.

But thats me. 🙂
 
I would stop paying rent - and look for another place - if they haven't started the foreclusure yet - you will have a decent amount of time to live rent free, and look for another place. The bank may even let you live there while they attempt to sell it.

Who knows.
 
Originally posted by: Casawi
Originally posted by: K1052
LOL....sounds like the owner is getting ready to bolt permanently.

You can talk to the bank and see if they have any interest in a short sale but I'm doubting you'll get a price as low as you're looking for. In the event of foreclosure as a renter you have no real recourse and will probably have to vacate the property.

Personally I'd go with your dad's plan.
Click to expand...

His a CPA with a decent job I believe. I doubt he wants to leave all of this for Kenya...lol
Click to expand...

I think you're right. I just emailed him and it just bounced back.
 
Originally posted by: Marlin1975
Check with local/state laws.

But i woudl hold rent back until given notice he is up to date. Don;t spend it just put it in a bank account and send a certified letter detailing it.
That and unless you sue you will probable not get your deposit back.

But thats me. 🙂
Click to expand...


You'd probably find yourself in violation of lease in those situations, and possibly sued yourself.

A rental agreement is between tenant and landlord and separate from his agreement with the bank.

If a landlord is facing possible foreclosure, his tenant's withholding rent will compound this. Some have done so with the intent of forced a short sale into their grubby mitts.

You should call your landlord and find out what is up. if you have worry of losing a deposit (many in these situation would have never gotten them back due to damages anyway), perhaps discuss getting part of it back now...or have it moved to a third party (lawyer) to hold.

If you are interested in the property I'd talk to a loan officer and figure out if it's warrantible condo or not. Many out there are non-financiable right now.

If the owner purchased it several years ago and assumption may be a better route as well.

There are a lot of variables.
 
Originally posted by: alkemyst
Originally posted by: Marlin1975
Check with local/state laws.

But i woudl hold rent back until given notice he is up to date. Don;t spend it just put it in a bank account and send a certified letter detailing it.
That and unless you sue you will probable not get your deposit back.

But thats me. 🙂
Click to expand...


You'd probably find yourself in violation of lease in those situations, and possibly sued yourself.

A rental agreement is between tenant and landlord and separate from his agreement with the bank.

If a landlord is facing possible foreclosure, his tenant's withholding rent will compound this. Some have done so with the intent of forced a short sale into their grubby mitts.

You should call your landlord and find out what is up. if you have worry of losing a deposit (many in these situation would have never gotten them back due to damages anyway), perhaps discuss getting part of it back now...or have it moved to a third party (lawyer) to hold.

If you are interested in the property I'd talk to a loan officer and figure out if it's warrantible condo or not. Many out there are non-financiable right now.

If the owner purchased it several years ago and assumption may be a better route as well.

There are a lot of variables.
Click to expand...



I currently have no agreement with landlord. The lease was a few months back. What warrantible condo.
 
Originally posted by: alkemyst
Originally posted by: Marlin1975
Check with local/state laws.

But i woudl hold rent back until given notice he is up to date. Don;t spend it just put it in a bank account and send a certified letter detailing it.
That and unless you sue you will probable not get your deposit back.

But thats me. 🙂
Click to expand...

You'd probably find yourself in violation of lease in those situations, and possibly sued yourself.

A rental agreement is between tenant and landlord and separate from his agreement with the bank.

If a landlord is facing possible foreclosure, his tenant's withholding rent will compound this. Some have done so with the intent of forced a short sale into their grubby mitts.

You should call your landlord and find out what is up. if you have worry of losing a deposit (many in these situation would have never gotten them back due to damages anyway), perhaps discuss getting part of it back now...or have it moved to a third party (lawyer) to hold.

If you are interested in the property I'd talk to a loan officer and figure out if it's warrantible condo or not. Many out there are non-financiable right now.

If the owner purchased it several years ago and assumption may be a better route as well.

There are a lot of variables.
Click to expand...

Meh, if the guy bolted to Kenya, I don't think OP has much to worry about. As he said, the landlord's email bounced back. Not a bad way to live rent free for a month or two...though obviously OP needs to make sure the landlord has actually peaced out.
 
Originally posted by: Gooberlx2
Originally posted by: alkemyst
Originally posted by: Marlin1975
Check with local/state laws.

But i woudl hold rent back until given notice he is up to date. Don;t spend it just put it in a bank account and send a certified letter detailing it.
That and unless you sue you will probable not get your deposit back.

But thats me. 🙂
Click to expand...

You'd probably find yourself in violation of lease in those situations, and possibly sued yourself.

A rental agreement is between tenant and landlord and separate from his agreement with the bank.

If a landlord is facing possible foreclosure, his tenant's withholding rent will compound this. Some have done so with the intent of forced a short sale into their grubby mitts.

You should call your landlord and find out what is up. if you have worry of losing a deposit (many in these situation would have never gotten them back due to damages anyway), perhaps discuss getting part of it back now...or have it moved to a third party (lawyer) to hold.

If you are interested in the property I'd talk to a loan officer and figure out if it's warrantible condo or not. Many out there are non-financiable right now.

If the owner purchased it several years ago and assumption may be a better route as well.

There are a lot of variables.
Click to expand...

Meh, if the guy bolted to Kenya, I don't think OP has much to worry about. As he said, the landlord's email bounced back. Not a bad way to live rent free for a month or two...though obviously OP needs to make sure the landlord has actually peaced out.
Click to expand...


The email is bouncing and his cell phone is disconnected or have been changed. Man people are shady .. I would never thought ... anyways.
 
Originally posted by: alkemyst
Originally posted by: Marlin1975
Check with local/state laws.

But i woudl hold rent back until given notice he is up to date. Don;t spend it just put it in a bank account and send a certified letter detailing it.
That and unless you sue you will probable not get your deposit back.

But thats me. 🙂
Click to expand...


You'd probably find yourself in violation of lease in those situations, and possibly sued yourself.

A rental agreement is between tenant and landlord and separate from his agreement with the bank.

If a landlord is facing possible foreclosure, his tenant's withholding rent will compound this. Some have done so with the intent of forced a short sale into their grubby mitts.

You should call your landlord and find out what is up. if you have worry of losing a deposit (many in these situation would have never gotten them back due to damages anyway), perhaps discuss getting part of it back now...or have it moved to a third party (lawyer) to hold.

If you are interested in the property I'd talk to a loan officer and figure out if it's warrantible condo or not. Many out there are non-financiable right now.

If the owner purchased it several years ago and assumption may be a better route as well.

There are a lot of variables.
Click to expand...


I would agree in the past but a lot oc courts have disagreed IF the person staying there gets noticve that it is being forclosed on. What i remember was the courts said the person leasing the place broke the agreement when they failed to maintain the place, i.e. legal ownership. A lease can;t be held up if you don;t own what you are leasing.

Thats why I said for the OP to send a certified letter saying the rent was being put to the side until legal notice of ownership is made.

 
Originally posted by: Marlin1975
Originally posted by: alkemyst
Originally posted by: Marlin1975
Check with local/state laws.

But i woudl hold rent back until given notice he is up to date. Don;t spend it just put it in a bank account and send a certified letter detailing it.
That and unless you sue you will probable not get your deposit back.

But thats me. 🙂
Click to expand...


You'd probably find yourself in violation of lease in those situations, and possibly sued yourself.

A rental agreement is between tenant and landlord and separate from his agreement with the bank.

If a landlord is facing possible foreclosure, his tenant's withholding rent will compound this. Some have done so with the intent of forced a short sale into their grubby mitts.

You should call your landlord and find out what is up. if you have worry of losing a deposit (many in these situation would have never gotten them back due to damages anyway), perhaps discuss getting part of it back now...or have it moved to a third party (lawyer) to hold.

If you are interested in the property I'd talk to a loan officer and figure out if it's warrantible condo or not. Many out there are non-financiable right now.

If the owner purchased it several years ago and assumption may be a better route as well.

There are a lot of variables.
Click to expand...


I would agree in the past but a lot oc courts have disagreed IF the person staying there gets noticve that it is being forclosed on. What i remember was the courts said the person leasing the place broke the agreement when they failed to maintain the place, i.e. legal ownership. A lease can;t be held up if you don;t own what you are leasing.

Thats why I said for the OP to send a certified letter saying the rent was being put to the side until legal notice of ownership is made.
Click to expand...
Who do I send the certified letter to?
 
Originally posted by: Marlin1975

I would agree in the past but a lot oc courts have disagreed IF the person staying there gets noticve that it is being forclosed on. What i remember was the courts said the person leasing the place broke the agreement when they failed to maintain the place, i.e. legal ownership. A lease can;t be held up if you don;t own what you are leasing.

Thats why I said for the OP to send a certified letter saying the rent was being put to the side until legal notice of ownership is made.
Click to expand...

You do own it until it's foreclosed on...getting a notice is not enough.
 
Originally posted by: torpid
As a renter they are legally obligated to continue your lease according to prior threads on ATOT. I have no idea if people were giving bogus advice in those, though.

I really doubt you will get it for less than half the amount owed. Maybe $120 if they bank is really pessimistic.
Click to expand...

If the bank forecloses, they might just knock on the door and give you 7 days to leave.
 
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