HELP! My Rental is being Foreclosed!

Defying · Nov 26, 2009

I live in a very nice condo in the nicest part of town.

Well this area was a hot spot for investors, unforunately, it wasn't successful as orginally thought. Property value rose for a while, then crashed. Well So I went through a middle man to rent this place.

Well last week I was contacted by a realtor telling my our place was being put on the market. I was kind of upset because I wanted to renew the contract for another 6 months. I will be moving out of state at that time. Well, she was telling me it was a short sale, and they take time to do. Our orginal lease was through the February.

I then brought up that we would be willing to work directly with the owner month to month leasing the place until it was sold. The thing is, there is 4 out of 8 of these condos in my building EMPTY. Including the one next door for sale, that has beem open for over a year.

So I thought no biggie, we will just work with her...

Well we got a letter in the mail yesterday that was from a law office saying that the Foreclosure process has been started!!

ARE WE GOING TO GET KICK OUT OF OUR PLACE? If the owner defaults, the bank doesn't have to honor our lease through themiddle man, does it?

What are our options? We pay the middle man for rent, and they take a cut and pass it to the owner. If she isn't paying the bills, should we contact the lawyer and see if we should pay the bank. I have no idea what to do.

It really sucks to be in the position. Being evicted from your house when you paid all your rent all on time. What do I do? What rights do I have??

HELP!:smoking::think2:

quantumleap · Nov 26, 2009

There was a bill passed last Spring that states you can stay in your home until the bank sells the home to a buyer who will physically occupy the home. In other words, if the bank sells it to another investor who has no intention of living in the home, you get to live there.

I've wondered if this might happen to me. Who do you make payments to because the original landlord no longer owns the house.

If it happens to me I will hire a lawyer to see what legally can be done. I don't think it will cost too much since advice is the only thing the lawyer will be doing. It's not like he will be suing anyone.

Doug · Nov 26, 2009

stating what state you are in would probably help the lawyer types here, for a start.

Defying · Nov 26, 2009

Thanks, I found that legislation.... ill post it next post.. Ok, our lease states we can renew the lease, but must give notice 60 priors before the orginal lease ends. Should, I do this ASAP and hope the legislation covers the knew lease, even though it was JUST renewed?

It doesn't seem like it will be that easy. Man I am stressed but QuantumLeap will least allow me to sleep tonight by showing me that legislation

Defying · Nov 26, 2009

I live in Virginia

Defying · Nov 26, 2009

This is the explanation I foundon the web about what QL was saying.....

Before May 20, 2009, most renters lost their leases upon foreclosure. The rule in most states was that if the mortgage was recorded before the lease was signed, a foreclosure wiped out the lease (this rule is known as "first in time, first in right"). Because most leases last no longer than a year, it was all too common for the mortgage to predate the lease and destroy it upon foreclosure.

These rules changed dramatically on May 20, 2009, when President Obama signed the "Protecting Tenants at Foreclosure Act of 2009." This legislation provided that leases would survive a foreclosure -- meaning the tenant could stay at least until the end of the lease, and that month-to-month tenants would be entitled to 90 days' notice before having to move out (this notice period is longer than any state's non-foreclosure notice period, a real boon to tenants).

Doug · Nov 26, 2009

Defying said:
I live in Virginia

no problem then, The RX founder ( The Shrink) will gladly house you in his home for 6 months or so.

artiesliver · Nov 26, 2009

See if any of the other apartments/condos next to yours are unlocked. If so, squat in there until you move out of state. Do these places turn the power and water off?

Just kidding, GL with your situation.

punter · Nov 26, 2009

If as you said 4 of 8 in the building are vacant, I would guess that you have no problem. Worse case scenario, you move next door.

Enfuego · Nov 26, 2009

The foreclosure process takes a long time so I wouldn't worry about it.

Defying · Nov 27, 2009

punter said:
If as you said 4 of 8 in the building are vacant, I would guess that you have no problem. Worse case scenario, you move next door.

She owes 3 of the 4.. not sure about the other one.. All of these are not the same. We live in the largest, 1800 square feet, the others are 1450...

Plus, the hassel of moving up and down stairs, including large desk, pool table, washer and dryer, and all funiture, tvs ect... And I doubt they would give us a 6 month lease...

Defying · Nov 27, 2009

I apperciate yalls help. RXers always come through..

I was so stressed at the start of it, I wouldn't of been able to sleep tonight. You all have made me feel better about it, but still I am very uncertain to my rights.

I would love someone who knows the law opinion

ConansHammer · Nov 27, 2009

Your unit will sell first because it has rental income in place. You need to get out of your lease and make it so it is month to month. You want the right to bail if you do not like the new land lord.

Until you move out your in the unit that is going to get visited all the time by prospective buyers.

Which means its rental value to you is dick.

kid44 · Nov 27, 2009

I bought a house for my kids after divorce. I hated the house but it served its purpose. Financially drained me over 4 years. Never could build up equity as it never appreciated. Let it go into foreclosure. Found out there was a sheriffs sale on it and I could lose all my stuff if I did not leave.

A Realtor called and offered me cash for keys. 4 grand and I leave. Have 4 days to go. Going to live rent free for the next 6 months and save up some dough. Very stressful times.

Good luck.

ProPokerPlayer · Nov 27, 2009

Unless that is correct about the new law signed by Our Lord and Saviour ....and id find it and keep a copy of it right by my door by the way....when the Sherriff shows up you will have about 20 mins to collect ur belongings and get out. Everything u cant get in those few mins will be set out to the nearest neutral ground.
Ive also never heard of a lawyer sending notices to tenants, that sounds very strange...must be required in ur state cus a lawyer gets pd for everything they do and somebody paid him to send that letter.
Regardless of everything else if i lived in a building i knew may be in foreclosure id get the hell out ASAP....

tatehill2000 · Nov 27, 2009

some may argue this point, but you need to stop paying your rent!! DEC 1st, dont pay a fkng DIME!!

keep the money on the side, if they evict you, you saved 1200 in rent (whatever your fee is) if they contact you, you can then set up payment schedules.

I live in AZ, I know DOZENS!!! of people that were screwed this way,

Your not stealing, your just ENSURING that if someone does something UNDERHANDED, youll have an extra 2-3 grand on the side to take care of you and your family,

tater

barman · Nov 27, 2009

ConansHammer said:
Until you move out your in the unit that is going to get visited all the time by prospective buyers.

That's when you get the big screen porn working while you lay on the couch naked rubbing one out.

No more surprise visits from prospective realtors.

sean1 · Nov 27, 2009

Who is the bank?

If its a smaller one, you might be able to work out a deal to keep paying them directly if they foreclose.

If its a huge one, it's unlikely you'll be able to get in touch with the right person.

In any case, I'd start putting my rent in Escrow going forward - with the clause that if you are able to live in the apartment for the full month they rent will be paid to whoever owns the property (bank or owner). You do not want to pay rent and then get booted.

quantumleap · Nov 27, 2009

If you are going through so much worry hire a lawyer. The $150 you pay will be worth it for peace of mind alone.

Defying · Nov 27, 2009

I spoke to the realtor today, and apprently she wasn't even aware it was being foreclosed

HELP! My Rental is being Foreclosed!

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