Can a lease be broken if you find out the house your in is in preforeclosure?

Question

My daughter and three roommates found out and not through there landlord that the house there renting is in preforeclosure, there gonna be starting school again soon and want to start looking for somewhere else to live now, rather than after school starts up again. Can they break there lease because of this? And if they don't start looking can they be locked out if the bank takes over?

Answer 1

The lease is a legally binding document until and if the property goes up for auction.  

Pre-foreclosures happen often....and most of the time the owner pays the mortgage up to date.  

BTW...they won't be "locked out" if the bank takes over.  They might even get a windfall if the bank offers a "cash for keys" option.

Answer 2

If the home owner runs down to the bank tomorrow and pays all his back payments (it happens all the time) then he owns the house and all is forgiven.  Since he has the right to do that, your daughter can not break the lease just because he is in preforeclosure.  He is still the owner and she rented the house from the owner.

In real life, she may be able to call the owner and say "If you know  you are losing the house, let me out now.  I don't want to wait for a knock on the door from the sheriff".

Answer 3

If they bank takes over THEY WILL be locked out because the lease will be legally broken as soon as the foreclosure takes place.

Call the city courthouse and tell them you want to know if a lis pendens has been filed against the property...if there has been, then you know it's on it's way.