What can I do about the foreclosure notice I received on the house I'm renting??

Question

I live in Colorado. I am currently renting a house. I just received a notice in the mail that the house I'm living in is being foreclosed on. Do I have any recourse against my landlords? Do I have to continue paying them?

Answer 1

My suggestion is, you need to contact the owners! They may not even know there home is up for foreclosure.....This happened to me once, when I sent out letters to individuals going through foreclosure, that I was interested in buying there property....One woman called me and said she had no idea and no one had informed her......Unfortunately, I don't believe you can do anything legally to the current owners.....My advise would be to contact an attorney and see what he will advise you....Also, perhaps if it bought by new owners, you can ask them if you can continue renting from them, believe it or not, they may allow you to stay, for most investors this would be ideal....If it goes back to the mortgage company, they will probably require you to move out, for they would want to sell the house and recoup there investment....BEST of luck to you..

Answer 2

I work in the foreclosure field in Colorado. Stay at the home but try to find the real estate agent that is in charge of the foreclosure on the property. You might be able to call the foreclosure company and find this information. Here's why you need it... to get the legal authorization to quit paying rent and sit tight. Seriously, they usually will pay a cash for keys up to $1500 sometimes to get a tenant out of the property. Please don't trash the home out, have a valid phone number the agent can reach you at, and just sit tight for a while. You might get money to get paid to move out. If your landlord is going into foreclosure you might not get your deposit back and you might need that cash for keys money to find a new place. In Colorado once a foreclosure has been filed it is a certain period of time 30-45 days until the foreclosure sale ,where an investor or a bank will buy the property back from the Public Trustee, then it it 75 days of redemption (unless you live on a farm/agricultural property which is then 6 months) during which an agent is usually assigned to watch the property and then after that period of time you will be contacted about moving out and cash for keys.

Answer 3

Don't worry too much about being ejected. It'll happen, but not for a while. You have a bigger problem.

The problem is that the Plaintiff may (or may not) be entitled to the rent now that the F/C has been filed. You are not safe paying either until it is established which one is entitled to collect. If you pay the wrong one, the other might be able to pursue you for the rent.

I suggest you write a single letter and send copies certified to the Plaintiff and the Defendant, both. State that you are uncertain as to which is entitled to the rent, and you want them to agree in writing which it is, otherwise you will Interplead the rent to the court. What will probably happen next is the Plaintiff will provide you some official document or Order that says you have to pay the Plaintiff, in which case, comply. It's unlikely the P and D will give you the agreement you ask for. If you don't get something you can rely on, call the court and ask them how to Interplead the funds. If they won't accept it, get an attorney and put the money in your attorney's Trust account until there is an answer.

You can get well and truly screwed here if you aren't careful.

Answer 4

First of all let the landlord know about the notice, it might be that the lender only has the address you now have for the landlord. Second Colorado is currently leading all the states in foreclosures according to realty tract so it's kind of hectic up there. So you need to find out what the laws say are your protected rights so here is a link that I recommend you look at:
LANDLORD TENANT ACT: http://www.dola.state.co.us/doh/Documents/Advances/tenant-l.htm
State’s Foreclosure Laws from foreclosure.com: http://www.foreclosures.com/pages/state_laws.asp
If you can not contact the landlord for instructions open a savings account in your name as trustee on behalf of the landlord's name and continue to make your rent payments to that account and wait for legal notice from a judge as to how to disburse those funds. If you get mumble jumble language notices that you don't understand go to this site for definitions in Colorado
Real Estate terms dictionary from Land Title Guarantee Company: http://www.ltgc.com/dictionary.html
The best advice of course is that you contact an attorney for proper advice you can go here for more information:
State bar Association: http://www.cobar.org/
Buena Suerte

Answer 5

You should absolutely let your landlords know. There is obviously something wrong if you as a tenant received the foreclosure notice. Let them know right away.

They may be able to sue you for unpaid rent up to the date of the foreclosure. If you haven't sent the notice to them, they could have grounds that you hid the situation from them when you learned of it.

It is hard to know what will happen in this situation. The landlords may pay. They may have not been notified. Or they may know and not pay. The foreclosure will happen and the bank or lending institution may or may not want to continue renting to you. Maybe they would let you take over the payment, but you would most likely need to pay a chunk of cash down.

My advice would be write the landlords. Send them the notice. Make copies of your letter and the notice. Send one set of copies to the bank or lending institution to notify them that you have attempted to notify the landlords. Keep the other set of copies for your records with your original lease. If you do this, it will cover your responsibility. The rest is out of your hands.

Answer 6

Usually the lease contains a clause that says the tenant is entitled to exclusive use of the property. You could probably negotiate with the landlord and reduce the rent. You may still get into trouble if you stop paying though.

Answer 7

I would call the landlord and let them know because as a renter I don't see how it is your responsibility
You may also want to consider looking for a new place because if I were you I would be wondering what my landlord did each month with my rent check because he certainly isn't using it to pay the mortgage

Answer 8

Find out who the new landlords are - probably a bank or finance company.
Contact them and ask if they would like to continue the renting arrangement.

Answer 9

The loan ought to probable be interior the substitute technique notwithstanding it ought to nevertheless fall through. i could wait till the 4th and spot who finally ends up with the domicile. i'm able to additionally evaluate searching for yet another place to stay. you have an extremely defensible place to get out of the hire.

Answer 10

You need to look for a new place to live, the landlord hasn't been paying his bills.