Is this a foreclosure? When will I be evicted?

Question

I have a year lease that started July 1, 2007 for a condo. I've paid rent for July/August + a security deposit. My landlord just called to ask if I wanted to buy the condo for 70K below value in a short sale. I think she is foreclosing (or going to) because I think that's why people do short sales, right?

How long before I can be a evicted? How will I get my security deposit back - it was equivalent to one month's rent? What should I do??

This is in Fairfax County, Virginia.

Everyone's advice has been terrific! I've had a lot of people tell me to buy the place but I'm 23 with little savings. I've heard condos are bad investments, plus I heard that condos can have big reassessment fees + condo fees. I'm worried I won't be able to pay for all that if I buy, plus I'll be the one fixing everything if it breaks. Wouldn't that be really risky??

Answer 1

first check yourself and see if she is in foreclosure.

you can find that information at the courthouse Hall of records or at the tax accessors office- (you will be checking for a NOD notice of default)

here is a website that l use...it is the foreclosure procedures and timelines for each state...click on your state.

http://www.foreclosures.com/pages/state_laws.asp

if you do find that she is in foreclosure - a trustee should be named in the records....so I would contact the trustee and explain to him your situation and ask him about the timelime.
if there is no trustee listed, call the landlord back and say that you are aware they are in foreclosure....how long before you need to be out...and what about your deposit?

it might be that the new owners would like a tenant, but it might be that they will purchase for themselves.

this is happening all across america to tenants...when landlords go into foreclosure and are not up front with the tenants.

Note----it might be that your landlord was just thinking of selling and gave you first hit at it at a lower rate...maybe (but i doubt it).

good luck :)

Answer 2

A short sale is when a bank will allow a sale of a property below the value of the mortgage. It is a sale to avoid foreclosure.
Regarding your security deposit, I'm guessing that the bank has prior lien status. In other words they get paid first.
Short sales are not approved by the lender unless the owner is virtually bankrupt and the lender sees no other way to get out of a bad loan. You may have trouble getting your deposit back. Talk to a lawyer and see if you can get some help on a contingency basis, if no lawyer will do this then you probably have a weak chance
Good Luck

Answer 3

Yes, that is what is happening. You can not be evicted until the bank actually owns the house, and that will take at least 90 days. Plus, in most case, they have to then give you an additional 30 days to leave once they notify you.

If by buying the condo, you can get your payments at or below what you are paying for rent, then go for it. If you are buying it below market value (and it seems that she is probably just trying to sell if for what her payoff is), then you will have a nice chunk in equity from the start. Even if you immediately turn around and put it back on the market at the fair market value price, you will come out ahead.

A lot of people make huge amounts of money buy buying up short sales when the current owners don't care about turning a profit and just don't want a foreclosure on their record. The buyer turns around and resells the property for fair market value and pockets a nice profit.

Answer 4

I'm in Florida, not Virginia. You'll need local advice and details ... maybe an attorney.

***
Down here, your lease stands. Buyer or outfit that forecloses on your landlord does so subject to any lease made in the ordinary course of business. They become the new landlord and stand in the shoes of the landlord.

Which would mean that if you keep up your end of the deal, you can't be evicted until after it expires [June 30th, 2008].

New owner supposedly receives your deposit and advance rent from old owner and then has to teat you as if they made the lease themselves.


Exceptions apply in cases where the renter and landlord are related, or where the lease is for an unreasonable amount or length of time, etc.


GL

Answer 5

I only know the answers for this in Michigan. Here you could have quite a while, and the bank would honor the lease. I would contact a local real estate expert and ask your question there.

Answer 6

sounds like the owner is getting foreclosed.
It also sounds like a great opportunity for you. Even if you were not thinking about it, I suggest you looking into buying or at least finding a partner who wants to buy.

You could get a lot of equity with the purchase, or even if you partner up with another buyer who pays you a decent referral fee for bringing him the opportunity.

People spent a lot of time and money looking for opportunities such as yours and yours was just dumped in your lap.