property has foreclosed on

[sgrove]

What is the name of your state? Georgia

Our landlord notified us about two months ago (verbally only) that she wanted to break the year lease we signed in April so that she could move back into the house. We told her that she had no cause to break the lease and that we were not leaving until the end of the lease. We have continued to pay our rent and have not recieve any other communication with her. She informed us today that she is signing papers to let the bank foreclose on the property. What are our rights? Does the bank have to honor our lease? What should we do next?

 

[JETX]

"What are our rights?"
*** You have the right to remain on your lease. And since this could easily be a scam for her to get you to move, has she put any of this in writing?? Did she advise who the mortgage company was so that you could contact them and verify her claim??

"Does the bank have to honor our lease?"
*** No. The banks foreclosure would allow them to terminate the lease. However, you should NOT move until such time as you are contacted in writing by the mortgage company. It is possible that the property could be purchased at foreclosure by someone else and that new owner WOULD have to honor the lease.

"What should we do next?"
*** Try to get the owners claim of foreclosure in writing. If you do, then simply start 'escrowing' your rent payments and do not send to the (now former) owner. When you are eventually contacted by a new owner or mortgage company, negotiate the escrowed rent payments with them and try to mutually agree to a termination or continuation of the lease.
It is IMPERATIVE that you escrow your rent payments upon confirmation of the foreclosure!!! Do NOT spend that money!!

 

[sgrove]

She took our rent money knowing that she was going to turn back the house. We believe that she rented the house knowing that this was a possibility. Are her actions considered an act of fraud? Do we have any legal recourse against her?

 

[HomeGuru]

She took our rent money knowing that she was going to turn back the house. We believe that she rented the house knowing that this was a possibility. Are her actions considered an act of fraud?

**A: no
*****
Do we have any legal recourse against her?

**A: no.