My landlord still wants rent, but he lost the house to the bank! Help!?

Question

We just signed a month-to-month rental agreement on a house in April, and paid first month and deposit.

In July, we received a notice that the house was going to be up for auction due to non-payment for the past year! We had no idea, and have been told that the owner commited fraud for renting to us when he knew he was going to lose the house because he is also a real estate agent.

The house has now been bought back by the bank in a short sale. We contacted another agent who told us to stay put until the bank asked us to leave or offered moving expenses- we cannot afford to move since it cost thousands to move here just 4 months ago.

BUT: The previous owner keeps calling asking us for rent when he no longer owns the house, he also wants our refridgerator which is included in the rental agreement.

What is our recourse?? We want to be rid or this man, but I won't give up the refridgerator until I get my deposit back! Help!

Answer 1

I'm not 100% sure - but I'm pretty sure:  He's not allowed to step foot on that property - it's illegal to come back to that property.  The assets in and on that property are no longer his, I believe.  

(I'm not sure if you're supposed to be there, either - hope you're making other plans).

Answer 2

DO NOT give him a payment, i'm sorry, but, that is just common sence. :p

Answer 3

don't pay the landlord--he's technically NOT your landlord anymore.  If he takes the fridge out of the house after it's turned over to the bank that's fraud--it's no longer his to take... as far as you guys having to move out--don't sweat anything. The bank will offer you $$ to move out and will give you a time frame for you to be out of the house---usually it's a few thousand depending on your area.  I worked in real estate for years and with many foreclosures---this was done everytime a renter was involved.  I would definitely change the locks on the house so the previous landlord doesn't have any access to your stuff... good luck!

Answer 4

don't pay the landlord, there is nothing he can do to make you leave.

Answer 5

The landlord has the right to demand rents up until and including the day on which the property ownership transferred to the lender.  He owned it during that time, and you are obligated to pay the rents due.  There are precious few states which consider renting in such a situation as actual fraud.  Rather unethical, but not legal fraud.

You are on a month-to-month agreement, and under such an agreement can be asked to vacate with thirty days notice.  Your deposit did not transfer to the lender who now owns the house.  You will need to find a way to get that back from the former owner, even if in small claims court.

Do not pay any further rents to the former owner, and do NOT let him come by to get the refrigerator either.  The refrigerator belongs to the lender, regardless of what he says.  If you can negotiate for your deposit in lieu of having a refrigerator, I'd take that quickly.

Meanwhile, be prepared to move, whether you can afford it or not.  The lender will most probably send paperwork to you very soon advising that they want you out.

Answer 6

Tell him to get lost.  I would replace the locks however.

In regards to rent, I would wait until you are contacted by the bank.  I would set up a savings account and put the rent payment into this account in case the bank asks you for the rent.  Being in a seperate account, you can show that you had been saving the rent and that you just didn't know who to pay.  - in case it goes to court.

You may be lucky and not have to pay anything.

Answer 7

You can not hold hostage a refrigerator owned by your former landlord. But neither can you release it from the property, because you do not know that it will not appear as a lien against the property.

The former landlord will have to sue the current owner for return of the refrigerator. It is not your option to return it to him.

Of course he can not enforce his rental contract, but it may be in your interest to contact the current owner to negotiate a rental contract with them before they take some other action.

It will not hurt you.

Answer 8

Since he doesnt own the house anymore he cant get the rent from you, especially since he rented to you illegally. Contact a lawyer and ask for a free consultation. This guy is obviously harrassing you.

Answer 9

He is not entitiled to the rent or the refrigerator after the home was sold.

Answer 10

Your best bet is to write him and email or a letter and tell him what you have been told

or if you know any lawyers just ask them to write him a letter and print it out on their legal paper, usually that scares people off. and if you know the lawyer usually they won't charge you for the letter

Answer 11

You need to verify the actual owner of the house. If all the paperwork has not cleared, he may still own the house.