when leasing a property(house) and it goes into foreclosure,are you required to continue paying rent?

Question

what are your options if the lease ends in nov 2007?

Answer 1

A foreclosure does not change any lease term or condition. Legally, you are liable for the full amount of the lease and all conditions of use. Certainly, going into foreclosure does not insure completion of the foreclosure. The process takes several months. . A property owner can reinstate a mortgage or cure any defect generally within a certain number of days prior to the set foreclosure date depending upon which state you reside. If the property is not foreclosed, the property owner would expect your payments to have been made timely and could upon reinstatement of mortgage, immediately seek your removal through an unlawful detainer action, affecting your credit standing and ability to find a new residence. If yours is an apartment building, a secured creditor could ask the Court to appoint a receiver to collect rents. You would receive a signed Court order instructing you to pay your rent to another individual. Given the great expense involved, this is unlikely to be done in cases of single family residences.
Your options are
(1) Continue paying the rent. All remains as is until and unless the foreclosure is completed. After foreclosure your lease is terminated by operation of law. New arrangements with the foreclosing party will be necessary.
(2) You could put the rental amount into a personal bank account and then if the foreclosure is not completed you will have the money to pay past due rent.
(3) You could seek to take advantage of the situation by just not paying the rent and hope the property is foreclosed and the original landlord does not continue to collect your past due rent. If they are having foreclosure problems, it is likely your rent non-payment will be the least of their problems and you will never be asked for payment. This is true even if the property owner files for bankruptcy protection.
(4) If you have no problem with potential adverse credit reporting, pay nothing until you receive an unlawful detainer action from either the original landlord or the new property owner. I have seen people obtain "free" rent" for periods of (6) months to (1 1/2) years depending upon the technical knowledge of the various parties.

In this latter case, your Nov. 2007 date is merely any other day. Your residential expectancy is up in the air and your last day of occupany is completly unknown. The unlawful detainer process to remove you takes at least one month to be served and heard. If this Nov. date is your desired termination date you may stay through this date assuming foreclosure has not been completed.

If your propensity is to save rental payment, you might find an attorney and explain your particular morality in this situation. Most lawyers will reflect your morality for a fee. Professional ethics (a self contradicting term) forbid them from substituting any personal morality for that of the client.
As a matter for concern is that in the event of a foreclosure you stand to lose your security deposit. If the present owner cannot pay the mortgage, what chance is there of being repaid for your security. At the very least protect yourself by withholding payment of prospective rent in an amount at least equivalent to your security deposit. If any repairs need be made during the foreclosure period, notify your landlord in the usual manner. If there is no effective response, pay the reasonable cost for the repair, keep the receipt and deduct this amount from rental amounts due. The receipt is critical if the matter goes to Court.

Answer 2

You are still obligated to pay rent to the current owner until the foreclosure. If you don't, you could be evicted for failure to pay and have an eviction on your record. If the bank forecloses on the property, your lease is basically at the mercy of the bank...the new owner. More than likely the bank will sell the property requiring you to move out since the previous owner you signed the lease with is no longer the owner of the property. If you know for sure the foreclosure is coming, I'd be looking for a new place now. You won't get 30days once the foreclosure is complete. It could be as little as 24 hours to vacate the premises.

Answer 3

2

Answer 4

No.. If the house is in foreclosure.. Legally the landlord can not collect rent. In New York at least.

You are allowed to remain in the house until transfer of the house back to the bank.. Which takes a few months.. Save up some money and look around for a new place.. Once the bank gets the house, They will give you 14 days to vacate the house.

Talk to the bank, They have money put aside to help you move.
They will pay for the costs of renting a truck.. etc... up to $250.
That is.. They will pay you contingent the place is left in a broom swept manner.

Answer 5

You are required to pay on the lease you signed, as long as you are living there you need to keep paying rent.Your lease is a binding and legal contract. By law you should be given 30 days notice if you need to move, no matter who owns the property the owners or the mortgage company. Best Wishes!

Answer 6

You are responsible for the rents until the termination of your lease. Change of ownership does not relieve you of any responsibility. At some point, you may be informed to change your rent payment to a new owner of the property, most probably a bank. Your lease is valid until its expiry.

Since most banks are not interested in being landlords, they may inquire of you about the possibility of vacating early, and may offer you a 'buyout' of your lease to entice you to vacate the premises. However, if you refuse, you are entitled to remain until the lease expires, as long as you honor the terms of the lease.

Answer 7

you will possibly desire to consult him to be sure how far it truly is into default. A month or 2? i might tell him you would be prepared to pay lease directly to the interior maximum loan or a minimum of the quantity it is owed to the interior maximum loan each and each month, thats in straight forward terms honest. this occurs plenty by skill of how, tons. in case you like the domicile you will possibly desire to do the above. in case you desire to flow provide up paying, save your cash and discover someplace else to lease. in case you provide up paying you may desire to have some criminal outcomes if the owner chooses to pursue them it is very no longer likely if its truly approximately to be foreclosed on and fairly no longer likely a decide might part with him if he did go with to pursue you. (those ARE MY critiques and should not be CONSTRUED AS criminal suggestion OR otherwise)

Answer 8

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