Is it illegal to rent a home that is already in foreclosure on LI, NY?

Question

I just rented a house on July 1st. The property managment group meet with me. Well one month later all phone #'s are disconnected, I got suspitious and contacted the town hall who told me that my house is in foreclosure. Is this illegal on the landlord's behalf? What can I do I gave them all my cash, not much but all I had.... $3000.00 and now I am affraid that my children I are going to homeless.

Answer 1

It is quite legal for the landlord to rent to you during his forclosure action.  You are paying for a place to live...and you are getting a place to live. The landlord can run out tomorrow and pay his mortgage note up to date.  Happens quite often...especially here on LI.  

Answer 2

it was illegal for the property owner to rent to you. however, when the property sells at auction, the new owners "inherit" you. if they want you to move they should compensate you for it. and don't give the current owner another dime.

Answer 3

This first person is wrong.  When the new owners take possession, you have absolutely no rights.  It will probably be a bank and they'll probably kick you out.  How long has this property been in foreclosure, is it even in foreclosure or have they just got a notification of further action if not acted on?  It takes approximately 6 months from initial filing to finally being done. You probably have some time, but not forever.  Don't pay these dirtbags another dime.  They have enough court, lawyer and other fees to deal with.  They'll contact you and you could get more info from them once you stop paying them. You've tried contacting them, tell them the $3000 is all they're getting and you'll report them to the state real estate board if they have a problem with this.  Tell them you are staying in the house until complete foreclosure for the balance you already paid them. The state board pulls licenses all the time and I'm sure this management company and owner don't want their licenses pulled.  It costs money to get an eviction notice and thay obviously can't afford it.