Question:

A default document was filed on my house per county records (I rent) so what does this mean?

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I saw in the public records that a default document has been filed on our house a week ago. My lanlord has not said anything to me about it. What does this mean? If he is going into forclosure then do we still have to pay rent? What about our security deposit? Should I confront him?

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  1. Your lease will be wiped out by the foreclosure.  One interesting note is that your landlord signed a "Assignment of Rent" when he got his loan.  He is supposed to be sending your rent directly to the bank if he doesn't pay his mortgage.  Contact the people on the default notice and ask them if they want the rent paid to them.  Sometimes they pay $1,500 if you agree to protect the house for them. /


  2. I would contact your landlord about your deposit. Since he’s still the legal owner, your lease with him is still an enforceable contract so not paying rent would be a violation of that agreement.

    The notice of default is the first step in foreclosure proceedings.


  3. It means your landlord is not paying his mortgage.  He is in the beginning of the foreclosure proceedings.  Unfortunately you are still obligated to pay rent, per the contract you signed with him.  Good luck getting the security deposit back.  The bank, when it does take over, will not have your security deposit.  Talk to him, then talk to a lawyer.

  4. as long as you still live there you have to pay rent - it has nothing to do with you - only with the owner of the property - no need to "confront" him - just ask him if there is a chance he will be losing the house - the new owner may want to keep the property as a rental - no need to panic at this point

  5. It sounds as if he's heading toward foreclosure. It appears that he's defaulted on his mortgage payment. That doesn't absolutely mean it'll be foreclosed upon. He might be able to sell it. Or he might be able to make up the arrearages. Or he might work out some other arrangement with the lender.

    You can certainly ask the landlord about it. He may or may not level with you.

    Yes, you still have to pay rent. He's still the owner of the property, and there's a valid lease in force.

    Regarding  your security deposit, that's iffy. The terms of the lease, including refund of the security deposit, continue. (With a "normal" sale, they'd continue even after the sale. However, if the property is foreclosed upon, the bank could give you notice to move.) The question, though, is whether your landlord will have the ability to return your security deposit at the appropriate time. If he can't pay his mortgage, he may not be able to refund your security deposit.

    You should discuss these issues with him. "Confront" is a strong word. He's probably not happy with the situation; I doubt he planned on going into foreclosure. At worst, you'll have to move a couple of months early and possibly lose your security deposit. He may lose his property...and perhaps others he owns as well. Understand that as you talk things over with him.

  6. You can feel free to confront him, but you still owe rent until the bank formally takes possession. If you don't pay he can still sue you for the amount owed while he was the legal owner, whether he is in default or not.

    The bank will (and is legally entitled to) order you out as soon as the title passes to them. You have no legal recourse.

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