Renter and A Foreclosed House: What are my rights?

Question

just moved into a house (2 days ago) in Florida and that same day some suspicious papers came addressed to the landlord from some attorneys. I called the real estate agent who rented me the house to express my concerns and she suggested I look in the public records for Palm Beach County for a Lis Pendens. Sure enough, there was a Lis Pendens filed on May 28 2008 for the house. I just paid my first month's rent and signed the lease. The real estate agency claims no knowledge of the foreclosure. Their only comment was that if the foreclosure goes through, I no longer have to pay the rent and can just wait until the foreclosing bank asks me to vacate. What are my legal rights in this situation? Any help would be greatly appreciated. Thanks in advance!

Answer 1

You should still pay your rent. It depends on the lease that you signed. I would read over it a few times and see if there is any more information on it.  Almost always though, the tenant can void your lease or ask you to leave as long as they give you a 30 days notice.  If her house would get foreclosed, I would recommend calling your tenant and probably trying to find a new place to live.  

Answer 2

This is a scam that has been going on lately. Or it sounds like it. Individuals who are at risk of losing their home, but are seriously upside down on the loan, will rent the house out. Sometimes for a few months not knowing when the foreclosure will go through. These people try to get as much money as possible to put a down payment on a new home, before the foreclosure goes through. Instead of using your payment to buy time, they are ignoring the payments that they are supposed to be making and pocketing the money.

If you signed a lease, extending longer than the time alotted for the foreclosure, then they invalidated their own rental contract and you can get a lawyer and get out of the lease. The longer you wait, the more money they get to keep from what you have already paid. Check with the board of housing or your local city hall. There may be a law on the books about renting housing that is in foreclosure. There may be some civil penalty for that. Civil meaning you can sue them. Every criminal law violation has at least one civil law penalty associated with it.

Answer 3

I just read all the answers, and most of them are looking at it from a very narrow perspective. Its a scam, its not a scam, your payments will stop the foreclosure....

The truth is, you have no control over whether this house goes to foreclosure. If it does, then yes - at some point you will have to vacate. The only exception would be if your lease agreement was signed and dated BEFORE the mortgage agreement that is being foreclosed upon.

Either way - there is no way to know what the owners intentions are. You can try to talk to them through the leasing agency. There is no scam going on - you got a house that you liked and wanted to rent, you are currently renting it... so you are getting what you paid for. The fact that you may be asked to leave early at no fault of your own is outside your control.

If you have not already moved in - then yes, I think you have a good reason to try and terminate the lease agreement, and I think any small claims court would back you up.

And yes, the Leasing Agency does have it correct - if the house does foreclose, then you no longer have to make payments (as it does not belong to the owner anymore). Then you can live rent free until you are given notice to vacate.  

Answer 4

This looks like a case where a homeowner has rented out a house to try to stave off foreclosure and hang onto their house.  If you pay the rent, the owner pays the bank and no foreclosure.  Alternative: owner still cannot catch up and the house goes into foreclosure.

You have a lease, so you must pay the rent on time.  Pay attention to foreclosure notices.  If the house does foreclose, then the bank/lender has to give you at least 30-days notice to vacate.  Depending on how a foreclosure played out, you might be able to live rent-free for some period of time.  Save up your money to move, just in case.