I rent a duplex, it has been sold in foreclosure, should I move out now?

Question

We have lived here for over a year, in a duplex. The other side was vacant UNTIL TODAY when new tenant moved in. We knew our landlord was in default on the mortgage, and have continued to pay rent in hopes he would not let it happen. But he DID. And now that the foreclosure has occurred (last week) we have found in the courthouse filed mortgage documents a rider which states our landlord (and I quote) has "no borrower right to reinstate after acceleration". Should we just get ready to move out? A notice was posted on the property 2 weeks ago, which advised of the foreclosure proceedings on the duplex, and gave notice to respond within 30 days, which we had an attorney do so on our behalf, that we occupied the premises, as if that might help. AND the new tenant next door just told me she paid 6 mths. rent IN ADVANCE to move in here, signed a lease yesterday, and didn't get a receipt. Does anyone think she got scammed, and does anybody else think I best find a new place to live ASAP?

Answer 1

If it's been sold at the sheriff sale, then the landlord is no longer the owner of that house. Your lease agreement with him is no longer any good, as he can't force you to pay rent on a property he doesn't own and has no right to collect payments on.

Unfortunately, that new tenant did get screwed. She can try to sue for her payments back, especially if she paid with a check or money order or some other trackable form of money. If she paid in cash and didn't get a receipt, it will not be easy to prove she even paid the money. She might as well try to continue living there for as long as possible to get the most from what she paid. The receipt may be part of the lease, though, if something mentions paying 6 months in advance. Check that paperwork, if possible.

Have your attorney contact the bank's attorneys and find out what their next steps will be and how long you will have. Then you can begin planning what to do and where to go and how long you will have to move out.

Answer 2

The new owner may well desire to continue your rental arrangement. You won't know unless you ask. Find out from your new neighbor who the new owners are, and contact them with your questions.

Your neighbor may not have been scammed. Lack of a receipt does not necessarily mean that the new landlord is a crook. It may have been an oversight, or the woman may have paid by personal check. Without knowing her credit situation, she may have been required to pay six months in advance simply due to a troubled credit situation.

Before you panic and start looking to move, I'd suggest that you discuss the future with the new landlord. You may be pleasantly surprised. If you don't like what you find out, THEN start looking around.

Answer 3

Your neighbor definitely got scammed unless she wrote a personal check or a money order and can use that as a receipt. Please don't tell me that she paid him in cash!!! For yourself, if you are happy being there, you don't have to start looking for a place and you may not have to move out anyway. The new owner will appreciate the fact that he/she has tenants paying rent, especially if you are a good tenant. Good reliable tenants are hard to find and as long as you are occupying the duplex, it is guaranteed income for your new landlord.

Answer 4

What the owner does consisting of your money is not any challenge of yours, you signed a hire to pay the hire and that's what you're anticipated to do till the possession of the valuables is going to the lender. you isn't obligated to pay the lender hire. in case you do no longer pay, the owner would desire to report a collections action or small claims tournament against you to get the hire. you could take a gamble that the owner won't report in case you do no longer pay, yet i does no longer anticipate it, in any respect. you could touch the lender and ask approximately paying them straight away if that helps you sleep greater beneficial at night. as quickly as the lender owns the valuables, it somewhat is achievable that they are going to grant you a "money for keys" settlement, you leave peacefully with the valuables in sturdy challenge by using a undeniable date and that they provide you a small stipend, in many cases some hundred money. while you're making the lender pass interior the direction of the eviction technique, there'll be no "money for keys", and you'd be playing on which day the Sheriff or constable includes boot you out.

Answer 5

Why don't you ask your lawyer? Have him contact the new owners and see what the lease / rental agreement looks like! If it's not something you should get involved with legal or otherwise, he should know! It may cost you a few bucks, but at least he can tell you if he would sign it!!!!!