The House I'm renting is being foreclosed. What are my rights?

Question

I just found out that my landlord has not been paying the mortgage on the house I rent. I've paid all my rent and it's been on time. What are my rights? Do I have to keep paying my landlord rent? What happens to me when the house is foreclosed? When Do I have to move out? HELP!

I live in Oregon

Answer 1

You might be able to buy the house through a few creative strategies that are beyond the typical agents here's thinking. An Involuntary sale does not transfer existing lease agreements to the new owner. Once the trustrees sale occurs an investor will likely own the place or it will go back to the bank. An investor may re-negotiate a lease with you or may opt to vacate and renovate the house. It is up to the new owner what happens so staying timely with your rent will help your chances. You might want to prepare for worst case and have a place located to move to. It isnt to difficult to locate the date of the trustees sale and that should be your deadline for having found another rental should things end up worst case. I too am in Oregon and have bought homes for many years from pre-foreclosure and at the trustees sales. My preferance has always been to buy a home with a good renter and lease option it to them post sale. With some luck this might happen for you as well. The bank might work with you as a buyer but cannot sell the property without first washing your landlords name off of title. The trustees sale performs that task for them. The term "foreclosed" essentially means property reverted to foreclosing lien holder. Foreclosure is the process under which that lien holder legally performs such an act.

Answer 2

frankly...start packing up, and look for a new place. A lawyer can advise you of the possibility of you suing the ex-landlord for emotional damages. But the fact that you've paid all-rent on-time means that if you sue the landlord, you'd probably win the case.
If there is a foreclosure date set, and it's not the end of the month (assuming you pay rent at the beginning of the month), you should be able to sue your landlord also for a partial refund of the rent for the portion of the month where you could not legally live in the house.

The fact is your lease is always with your lanflord. And the fact that the landlord is changing implies either a new lease needs to be negotiated with the new owners (be it the bank or someone else) or that the lease is now defunct.

Answer 3

2

Answer 4

If the property is foreclosed, the law will usually give a redemption period, though that is unlikely, to the owner.

Only after that redemption period, can the mortgagor evict the owner/tenant. You will then be given a notice to vacate the premises, if the mortgagor wishes you to leave.

This can be an excellent time to step in and ask the mortgagor if they wish to sell the property. They are likely to deal with you because your already reside there and they usually don't want to care owned real estate on the books too long.

I would ask the present landlord who the mortgagor is and contact them ahead of time. It is also possible that the mortgagor leans on the owner to simply sign the property over to them, though some state prohibit this. Usually that is done by the owner so as to preserve their credit rating. But that is an excellent chance to negotiate with the mortgagor and get favorable terms.

Good Luck

Answer 5

I have to agree with those above me.....Contact the bank and ask what is owed on the mortgage.....Provide past rental payments and show you have kept up the property, they will see you are a good tenant and have an interest in the property.....You may get a fantastic deal if little is owed.....If you can't buy the property, then you will have about 45 days to move out, after the foreclosure has taken place.....The bank or new owners, must give you 30 days to move out, eviction notice.....Unfortunately, you don't have rights under the law as a tenant....

Answer 6

Well you have apparently been informed of the situation.. though you have been a model tenant it appears, that does not mean the owners were able to meet thier financial obligations. When the house forecloses, or shortly before hand.. you will probably be given a notice to vacate.. in the mean time I suggest you start looking for other housing.. Try contacting the Fair Housing depart in your area and see what your tenants rights are..
You';ll get much better informatin from them then from anyone here.

Answer 7

Hello from Beaverton...

As a renter you really don't have any rights...
except the right to be given a 30-day notice to vacate.

Yes, it's your obligation to continue paying rent regardless of what's happening with the landlord, otherwise you could get sued.

You might want to read through this...
Tenant Rights, Laws and Protections: Oregon
http://www.hud.gov/local/or/renting/tenantrights.cfm
Especially this...
http://www.tenant.net/Other_Areas/Oregon/landlord.html
Good luck!

Answer 8

Talk with the bank or financial institution that is foreclosing. Typically, banks do not want to go to the trouble of paying commissions to real estate agents to sell foreclosed property. They may want to make a deal with you. Are you able to purchase the property? Do you have good credit and funds for closing costs? Then, maybe you should think about buying instead of renting.

Answer 9

well number one it is not your house in the first place you have no right as a tenant you only rent there not own it your land lord took avantage of you in there is nothing you can do about it get out in go live some were else before you live on the street in what ever you do dont try to take this guy to court you will lose big time

Answer 10

You really don't have any here, I would suggest start looking for a new residency immediately.
It is unfortunate that your landlord took advantage of you as a tenant.
You can try to purchase it if you are in the financial means to do so.
Good luck Hon.