lease after foreclosure

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My lease was terminated by bank after foreclosure, with time to run. New jersey

 

[peter]

They cant do that... stand up for your rights and make sure they give you back your security deposit!


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<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by [email protected]:
My lease was terminated by bank after foreclosure, with time to run. New jersey<HR></BLOCKQUOTE>

 

[peter]

Here read this..its from NY but were you notified in anyway by the bank of the pending foreclousre? Were you served any papers, or told of a time and place of the foreclousre?

And you ignored them.......then the bank has a case against you


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Case Caption:
Citywide Capital LLC v. Villanueva
Issues/Legal Principles:
Possessory interests of rent paying tenant who was not a party to a foreclosure action remain in place and new owner
cannot evict tenant as a mere licensee.
Keywords:
licensee; foreclosure; recording statutes
Court:
Civil Court, Kings County
Judge:
Hon. Baynes
Date:
March 10, 1999
Citation:
NYLJ, page 29, col 6
Referred Statutes:
RPL 290 & 291; NY State Constitution Article 6, Section 15(b); Civil Court Act 905
Summary:
Tenant entered into a lease with the former owner in 1992 for a rent of $400 per month for ten years in consideration for
the tenant's agreement to repair and maintain the premises. The tenant invested about $30,000 into the apartment in this
regard. In 1996, a judgment of foreclosure was entered against the former owner and the property was sold at a public
auction. The new owner brought a holdover proceeding against the tenant. The owner argued that the lease is
subordinate to the previous owner's mortgage and should be deemed to have been terminated by the foreclosure
judgment. Alternatively, the owner argued that the lease is void in view of the tenant's failure to record it in accord with
New York's recording statutes. The tenant has sought to dismiss the petition on grounds that he was not made a party to
the foreclosure action despite being in open, visible and continuous possession of the premises, and that his possessory
rights are not affected by the foreclosure despite not having recorded the ten- year lease.
With respect to the first argument, the Court agreed with the tenant that if a rent paying tenant is not named a party to a
foreclosure action, as a general rule the "possessory interests" may not be affected by a judgment of foreclosure. In such
instances, the purchaser takes title subject to any rights or interest which the tenant may establish. The Court then was
forced to examine the precise nature of the tenant's "possessory interests." The landlord argued that since the ten-year
lease was not recorded, the tenant is a mere licensee. The Recording Statutes provide that with the exception of a lease
lasting three years or less, every other written instrument which affects or even may effect title to real property is a
conveyance and as such is void against subsequent "good faith" purchasers who have purchased for "valuable
consideration," unless the documents are duly recorded. The tenant, however, cited cases that if a tenant is occupying the
premises in an open, visible manner, then constructive notice is had of the possessory interest, and the purchaser has a
duty to inquire of such interests prior to purchasing the property. Other cases held that if there was constructive notice of
the unrecorded deed, the burden of proof shifts to the purchaser to prove that he or she was a good faith purchaser, i.e.,
that he or she failed to discover the prior right of the tenant, notwithstanding the exercise of proper diligence on their
part. The court held that it could not determine good faith issues on motion papers and that a hearing was necessary on
this issue. The court added, however, that these sorts of issues concern equitable relief which the court may or may not
have jurisdiction over. The court denied the motion without ruling on the larger jurisdictional issues.


<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by [email protected]:
My lease was terminated by bank after foreclosure, with time to run. New jersey<HR></BLOCKQUOTE>