Paying Rent During Foreclosure

[SierraMisty]

Hi, I would like to know the laws regarding the payment of rent while the home you are renting is in foreclosure. We found out our home was in foreclosure a few months ago when we were served papers and that the landlord had not paid the mortgage for the past six months. Well, we talked to the landlord, who told us that they had straightened things out with the bank and the house was out of foreclosure, so we paid rent. Now we find out the house is still and always was in foreclosure.

I thought it was illegal to take rental payments while a home is in foreclosure. Our rental payments are very high and we will be out on our rears when this house does get foreclosed on, with no money. I've heard some people say you put the rent money in a separate account and don't pay the landlord, but I'm not sure about that.

I guess my questions are: what are we supposed to about rent? And how are we supposed to handle this without being evicted? I mean if we don't pay our rent, I suppose the landlord could evict us and I don't want to be evicted and have that on a credit report. I am confused, because I thought the landlord cannot legally take rent in a foreclosure or can they? If we put payments in a separate acct. - who is entitled to the past rent payments that we put in that account?

Thanks for any help on this matter.
What is the name of your state (only U.S. law)? FLWhat is the name of your state (only U.S. law)?

 

[CA LL]

You still must pay the rent to the landlord. The lender will advise when they actually take over ownership and most likely you will have to move...somewhat quickly. The LL CAN evict you for non payment if you don't pay..not a good idea.

 

[aabbcc]

Ditto

No free ride. Rent is still due.

 

[Who's Liable?]

Hi, I would like to know the laws regarding the payment of rent while the home you are renting is in foreclosure. We found out our home was in foreclosure a few months ago when we were served papers and that the landlord had not paid the mortgage for the past six months. Well, we talked to the landlord, who told us that they had straightened things out with the bank and the house was out of foreclosure, so we paid rent. Now we find out the house is still and always was in foreclosure.

I thought it was illegal to take rental payments while a home is in foreclosure. Our rental payments are very high and we will be out on our rears when this house does get foreclosed on, with no money. I've heard some people say you put the rent money in a separate account and don't pay the landlord, but I'm not sure about that.

You are incorrect. It IS legal to collect rent monies UP UNTIL the foreclosure. It would be illegal for the LL to collect rent AFTER the foreclosure date.
Putting rent monies in a separate account is usually done when a tenant is forcing the LL to make repairs and placing the monies in a third party account.

I guess my questions are: what are we supposed to about rent?

You are still obligated to pay rent as others have posted.

And how are we supposed to handle this without being evicted?

I mean if we don't pay our rent, I suppose the landlord could evict us and I don't want to be evicted and have that on a credit report.

Evictions don't go on credit reports. The judgement(s) resulting from an eviction go on a credit report.

I am confused, because I thought the landlord cannot legally take rent in a foreclosure or can they?

Yes they can, HOWEVER there are some states with new laws regarding foreclosures and existing tenants.

If we put payments in a separate acct. - who is entitled to the past rent payments that we put in that account?

You don't have the luxury of doing this.

You should take steps to protect yourself. Some banks/lenders only give 24hrs. notice to vacate, some 2 weeks, some until the home resells.

You should send a letter to the LL demanding your security deposit AND give them a forwarding address. When you are forced to move out, give the LL the amount of time needed to refund the deposit, and if they fail, sue them in small claims court.

 

[SierraMisty]

Ok, thank you everyone. I got bad advice which is why I came here to check. It didn't sound right not to pay rent.

Not looking for a free ride, but it would be nice not to have to pay rent.

However, now I'm worried about when the bank takes over, that we will probably be forced out very quickly. Guess it's time to look for another place or see if we have the option to buy the house. I guess I can break the lease if I find a place, since it's in foreclosure. If not, this doesn't seem fair to the tenant if you have to sit around and wait for the bank to kick you out and not have a place to go until then.

Thanks again everyone.

 

[ecmst12]

No, you can't break the lease because of a POSSIBLE pending foreclosure.

 

[SierraMisty]

No, you can't break the lease because of a POSSIBLE pending foreclosure.

Wow, that is just messed up! So if, rather when it goes to foreclosure, the bank can kick me out in as little as 3 days and I have to find a home, movers, then move my stuff into the new home or storage unit if I don't find a place in that short period of time, then move it again? That's just great! NOT!

And it's probable, not just possible now. The landlord says he just wants out and wants rent up until the last day possible.

Well, thanks everyone for the help. Wish you all had better news for me. Sounds like I am in a pretty bad situation.

 

[ecmst12]

You don't know that it will be foreclosed on yet. There could be a sale or some other intervention. And it's likely that the bank will give you some notice or some money to move quickly. But as long as the foreclosure is not finalized, then he has not violated your contract. Your contract is, you pay rent, he provides place to live. The status of his mortgage has nothing to do with your lease.

 

[onehotmom]

Buy Option?

With all the possible forclosures today see if the bank will let you buy the home? Its worth a shot!!!

 

[johnd]

Wow, that is just messed up! So if, rather when it goes to foreclosure, the bank can kick me out in as little as 3 days and I have to find a home, movers, then move my stuff into the new home or storage unit if I don't find a place in that short period of time, then move it again? That's just great! NOT!

And it's probable, not just possible now. The landlord says he just wants out and wants rent up until the last day possible.

Well, thanks everyone for the help. Wish you all had better news for me. Sounds like I am in a pretty bad situation.

You could enjoin yourself as a third party plaintiff in the limited venue to nullify the lease...or having the LL declared in breach.