My landlord didnt make payments now house is in foreclosure what are my rights to stay there?

Question

My landlord didnt make payments now house is in foreclosure what are my rights to stay there?

Answer 1

You don't have any....and this is the part of real estate law that I don't agree with.

Your contract is with the landlord, not the bank.  So when the landlord loses the property to the bank, then that terminates your lease.

You should receive a notice from the bank of when you need to be out and it may or may not be a 30 day notice...in my state it's only 7 days.

Please, please, please, do not let anyone tell you that this date is negotiable, because 99% of the time, it's not.  If you ignore the requests and stay, you'll come home one day to find the doors on your home padlocked by the Sheriff.

The rules of sale DO NOT apply, so the bank does not have to honor your current lease.

Understand, that you most likely won't get your deposit back...this is the ONLY time I advise people to not pay rent...figure out what your deposit is, and prorate that for when the bank says you have to be out...that way, when you leave, you are even.

Answer 2

None.  The rights of tenancy are terminated during an involuntary sale, which is what a foreclosure amounts to.

After the bank takes ownership, you will have about thirty days to vacate the premises and find new accommodations.

Answer 3

Renters who find out that the home they are living in may be involved in a foreclosure or bankruptcy are usually rightfully worried about what will happen to them. The bank could kick them out at any time or they may offer a cash for keys deal if the foreclosure has already gone through; when landlords keep tenants in the dark, everything is uncertain. But tenants need to find out what is the current status of the property in order to plan either for moving or staying put.

If someone renting a property suspects the house they are renting is involved in a foreclosure or bankruptcy, they need to find out as quickly as possible if this is true and which legal procedure it is involved in. The bank and the courts will treat occupants of a property differently in foreclosure and bankruptcy situations; planning for moving out or getting any money through a cash for keys deal is impossible if the tenants do not know what is the status of the property. The status can be found out through asking the landlord or, if the owners are not responsive, by calling the local district or bankruptcy court and request a search of their records.

In a foreclosure, the bank will attempt to sue the owners of the house and take possession of the property by having the local government auction the property to satisfy the defaulted mortgage loan. The bank is usually the buyer of foreclosed houses at county sheriff sales, so once it has become the owner, it will attempt to evict anyone still living in the foreclosed home. In order to facilitate a peaceful transfer of the property, the bank may offer any lingering occupants a cash for keys deal, but not all banks do this -- tenants may want to call and find out what the lender can offer in the way of money to move out.

But a house in bankruptcy proceedings is completely different. If the homeowners filed bankruptcy because they were behind on the mortgage, it means they are seeking protection in the courts to get a chance to repay the defaulted portion of the loan and get back on track. The foreclosure process is completely on hold at this point, and there is no danger of either the tenants of the original owners of having the house auctioned off, being evicted by the bank, or being offered a cash for keys deal. None of these actions may be taken if the mortgage is involved in a Chapter 13 bankruptcy.

Unless the homeowners fall behind on the bankruptcy payment plan, the mortgage company can not move forward with any aspect of their foreclosure lawsuit against the owners. Bankruptcy grants homeowners relief from any collection efforts, including foreclosure, for as long as their debts are tied up in court under the Chapter 13. If they manage to make it all the way through the payment plan, then they are out of bankruptcy and foreclosure. Tenants have to keep paying rent to stay in the property, since the original owners still have legal title.

So people renting a house who suspect their landlords have fallen behind in the mortgage have to find out if the house is involved in either foreclosure or bankruptcy proceedings to know what will happen next. A property can not be in both situations at once, since filing bankruptcy will immediately stop foreclosure and put a hold on the sheriff sale. Either the renters may be in danger of eviction but can ask for a cash for keys deal, or they have to keep paying rent to the owners in order to keep living in the house, regardless of any bankruptcy proceedings.

Hope that helps.

ForeclosureFish

Answer 4

You have no rights.  The house will belong to the mortgage company and you have no contract with them.

Answer 5

none

move out

Answer 6

I am buying a property that is being rented and I had the same question for my real estate agent.

Answer: Unless the buyer agrees to either honor the existing lease with the seller or agrees to draw up a new contract with the existing tenant, the tenant is issued a notice to vacate within 30 days on the day that escrow opens. In that case, the tenant has absolutely no rights to occupy the property after the 30 days has elapsed.

Answer 7

That depends.  If there is a "Do Not Disturb clause" in the trust deed or mortgage that your landlord had with the lender, then you can probably stay and just continue your relationship with the landlord, albeit a new landlord.  Check to see if there is a Do Not Disturb clause.

If there was no Do Not Disturb clause, then you're probably out of luck.  Your recourse is against your current landlord.

You really should speak with an attorney in your area that specializes in tenant rights, as these things tend to be somewhat different from one jurisdiction to another.

Good luck!

Answer 8

Your recourse is against the landlord only, and and he/she may not have any funds to go after.  This is happening quite frequently and the landlords will keep seeking rent until the can no longer get away with it.  Once the home is foreclosed on, most lenders will not want to go through the eviction process, so you should ask them to give you "cash for keys."  They will typically give up to $1,000 in my experience, but realistically, all your deposits, etc. are gone.

Answer 9

Foreclosure will wipe all rights out even if you have a lease.

Answer 10

None.