What is the name of your state (only U.S. law)? MN
I have a single family home rental property that is up for Sheriff's sale in Aug. I have tried working with the lender on a mod, but because it is a commercial property I do not qualify for any assistance programs. The house has a cracked foundation and will not qualify for VA or FHA financing, so I am unable to find a buyer. The property has been rented by a wonderful, reliable renter for 2 years, but the rent is not enough to cover the mortgage payment. It is at 'market rate' for our area--I was able to cover the shortfall up until last year when I took a 50% pay cut. My renter is not interested in purchasing the property, he will retire in about 2 years and move south. I feel very badly that I cannot keep up with the mortgage payments, it is not his fault I am upside down on the house. The lender knows that there was a one year lease signed but it reverted to month-to-month after that. My question is, can I sign a 2 year lease with the current renter for Aug 1st and will the new buyer or bank have to honor it? Can they raise the rent after the sale?