Our lanlord has defaulted on their mortgage and was served a summons. It has not yet gone into foreclosure but is in the process. Who do we send our rent to?? We have not gotten a straight answer from anyone. We have a lease agreement until Aug 2008. We are 4 young adults who have never been in this situation before. Any advise. We don't really have money to get an attorney. Do we start a third party bank account at the bank that the morgage is thru? When do we stop paying the Lanlord? Please Help!
2007-12-29 12:56:10 · 8 answers · asked by PeachFuzz96 2 in Business & Finance ➔ Renting & Real Estate
You need to keep paying your current landlord until you get written notification from the lender that they have taken over ownership of the property.
Do not pay by cash .... check or money order only.
You really have nothing to be concerned with unless you get notification from the lender and, if the owner has just now been served a summons to initiate the foreclosure, you probably have 4-6 months before you'll hear anything.
IF it goes into an actual foreclosure SALE, you may well be getting notifcation that you need to vacate the premises within a certain period of time. Really, though, you are months away from that happening.
At this point, there is NOTHING you need or can do but there is also nothing to be concerned about right now.
Hope this helps!!
2007-12-29 13:41:08 · answer #1 · answered by Joe 3 · 0⤊ 0⤋
"the police also told me not to pay the rent. " That was WRONG! The police do NOT know landlord tenant laws & had no business advising you of such. They were correct that it was illegal for her to lock you out with out going to court 1st but she does have every right to evict you for not paying. The note from her IS a legal eviction notice & you DO need to move, however she must take you to court for the non-payment before she can lock you out. It is legal to rent a house that is in foreclosure. The foreclosure does not void the lease. It can take months for a foreclosure to be completed. The owner DOES still own in during that time & you are legally required to pay the owner the rent until the day the bank takes possession. Any repair issues have nothing to do with the foreclosure issue or the rent. It is also illegal to withhold rent over repair issues with out a court order. If you do pay her & remain in the unit after the foreclosure then the bank is required to give you 90 days notice. Once the bank takes possession you will be required to pay rent to the bank. So either way you are not going to be able to save any money & are going to have to move.
2016-05-27 21:56:20 · answer #2 · answered by luz 3 · 0⤊ 0⤋
I would hold the money until there is evidence that the landlord has fixed the situation. If he/she is in default, then it sounds like it's disputable whether or not they still own the house. To be sure, you can probably check with county records and see which banks are holding any part of the deed. That bank will be able to tell you whether ot not the landlord is in good standing on payments and such.
You might also be able to check about elidgability to purchase the home through the bank itself. Check with tham and a realtor about the foreclosure process.
On foreclosures, it generally takes banks forever to make any progress in kicking people out. I have heard stories of people living in foreclosures for months before being formally evicted.
2007-12-29 13:08:10 · answer #3 · answered by Anonymous · 0⤊ 1⤋
You stop paying your landlord when you move out. The bank will not become your landlord. You pay rent to the landlord as long as he owns the property, your contract is with them.
You should receive a 30 day notice of when the bank will be taking it over. Your lease until Aug is void.
2007-12-29 13:00:31 · answer #4 · answered by Landlord 7 · 2⤊ 0⤋
Well, once the house is forclosed, you won't be paying rent to anyone at that house because you will be out. You pay your landlord for now, then you move when the house is taken over by the bank.
2007-12-29 13:05:40 · answer #5 · answered by Anonymous · 1⤊ 0⤋
You continue to pay the landlord until ownership has passed to the lender. Whether the landlord uses your rent to pay the mortgage or not is irrelevant to you. Your contract is with the current owner, and you should continue to honor it until informed otherwise by any new owner(s).
2007-12-29 13:00:42 · answer #6 · answered by acermill 7 · 1⤊ 0⤋
you need to contact the mortgage company if you know who it is, if not the landlord.
find out when you have to be out, if you put down a deposit and it's equal to one full months rent then your last month you would not pay rent. (this is very common).
if you did not pay deposit then ask them if you can go ahead and move, or stay till the end, but if you stay you need to know who gets the rent it does not always go to landlord
2007-12-29 15:21:23 · answer #7 · answered by jeanniep 5 · 0⤊ 0⤋
Call Cark Howard. He will know
http://clarkhoward.com/
2007-12-29 13:05:34 · answer #8 · answered by KC 2 · 0⤊ 1⤋