Bad surprise by landlord = WE CLOSED 8/21/18 - YAY!

[Anonymous]

This is going to be a rather long post, but i will keep it updated as we go through the process - 

I moved into this apartment house 4 1/2 years ago as a reference from my friend, that was the only way to get in here. She got in here because her mother was personal friends with the husband and wife who own it(remember this). The wife's mother lived on the other side. A few months later my bf moved in with me. We live right on a river. It is the ideal place to live. All utilities included. The mother got older and moved into senior living we moved into her side and bf's buddy moved into our side. 

Fast forward to monday 3/19. i am currently out of work i just had surgery on both my feet. Friend upstairs just had a baby 2 months ago. We are helping each other out. Mail comes. Landlord gets certified mail, we all get notices that the house is in foreclosure and the sale is May 9th.. What the?!!! Obviously this means they have not been paying the mortgage for a really long time. Girl upstairs calls the wife. Remember her mother and the wife are personal friends. Wife tells her theyve been in debt since "the fire"(30 years ago there was a fire here original contractor took off and new contractor came in and of course he wont continue on with original guys work so they end up $300k in debt and never been able to catch up - yes we all know why because the husband gambled all the money away may as well say it !!) and they are tired of dealing with it and have decided to let it go..ok fine but why the F didn't you tell us!!!??

I tell BF when he comes home and he is practicall crying. he LOVES living here and we never intended on moving. we wallow in self pity for awhile that night and he says.. well.... i do NOT want to rent anymore i want to try buying a house. the worst they can do is say no. Now he is new to credit, at only a year and i have been working very hard at both of ours. now is not the time for us to be doing this. 

i call the local remax office the next day(tuesday) and set an appointment for Saturday 3/24. i make a post on facebook, turns out his buddy's wife is a mortgage officer at the bank where i have my checking account. we spoke yesterday. one of us seriously needs a raise. she didn't say no though but we only qualify for $130,000.. eek! but.. i guess you never know. today i got all the documents together for her. 

i do not want to be doing this. it was never my dream to own a house. granted renting is throwing money away but when something breaks its someone elses problem. bf is very handy and so is all his family im not worried about any of that. mostly it is fear of the unknown.. i have no clue about any of this.. i did not even know you have to have a realter AND a mortgage broker thought realtor did everything. i am extremely angry they didn't tell us 6 months ago when they stopped paying the mortgage. why would you do that!? we are not strangers!! 

will keep this updated. sorry for the extremely long first post!

[Kree]

This might be state specific, so consult someone local and knowledgeable.

1.But tenants generally cannot be forced to move from a foreclosed home until the lease runs out.  You just change your payments to the bank or new owners.

2.Some areas do not have investors willing to purchase foreclosed homes with rentors.  You need extra down, and bigger pockets to afford it.

3.  This means that if the house goes to auction you can get a very cheap price. Especially if you trust all the current tenants to keep paying you reliably.

Cheers, and good luck.

[Anonymous]

should have mentioned #1 - we do not have a lease - all of us live here basically with a handshake. if we ever did need a lease for something the girl upstairs had found one online and we basically just used that.

im all set with this place i do not want to be a landlord and secondly it needs some work- septic , roof etc. 

for future reference i live in Rhode Island

thank you though Kree

[Kree]

EDIT: didn't fully read post.

You are welcome.

[Anonymous]

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@Kreewrote:

EDIT: didn't fully read post.

You are welcome.

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haha no i never said we didnt have a lease we talked about it in the garden thread just forgot to put it..other people would ask that..

[Anonymous]

That situation would have me angry.   It sucks that you have a limited amount of time to decide.  Renting does have it's advantages.  You have mobility and also, for the most part, when something breaks you call the landlord and the onus is on them to fix.  If you aren't sure you want to be in that area for five or so years or you want more time to prepare I'd rent again.   Interest rates will most likely go up but it's not easy or painless to have to walk away from a house.  Maybe things won't be so pressured with renting another year and then starting the process of house hunting around the nine month mark. Just a thought.  Good luck with whichever route you take.

[Anonymous]

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@Anonymouswrote:

That situation would have me angry.   It sucks that you have a limited amount of time to decide.  Renting does have it's advantages.  You have mobility and also, for the most part, when something breaks you call the landlord and the onus is on them to fix.  If you aren't sure you want to be in that area for five or so years or you want more time to prepare I'd rent again.   Interest rates will most likely go up but it's not easy or painless to have to walk away from a house.  Maybe things won't be so pressured with renting another year and then starting the process of house hunting around the nine month mark. Just a thought.  Good luck with whichever route you take.

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well.. we definitely want to stay here this is our home area where parents are etc.

depending how appointment goes on saturday i think will determine what we will do. if realtor thinks we should rent again for a year then thats what we'll do

i view renting like i view my car lease. i would rather pay a car payment till i die to not have to worry about car problems - and bf is a mechanic haha..

[Anonymous]

Very similar to my situation. I was leasing a condo that was perfect for me. Last summer, after 3 years there, the landlord suddenly informed me that she was putting the property on the market for sale in two weeks. I was in no position financially to make an offer on it with no notice so I had to immediately start looking for a new place to live since I was no longer in a yearly lease. 

I moved into a house that is a dump compared to where I was, knowing I'll be moving out again as soon as my lease ends. It sucks. 

But the the positive side is that I should be in a great position to buy a house or condo this summer. And I'll be very happy to finally have my own place. One that I'm not at the mercy of a landlord, who might raise the rent. And I will never have to move out unless I choose to. 

Renting property isn't like leasing a car in that you build equity in property. A 10 year lease of a condo puts about $60k in the landlord's bank account. Not to mention added equity in rising property values. After a 'lifetime' of paying a house mortgage you can easily end up with $400k in equity these days. 

As as much as you love where you are now, I bet you'll be happier in a place that is your own. Consider this unpleasant experience a blessing in disguise. 

[Anonymous]

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@Anonymouswrote:

Very similar to my situation. I was leasing a condo that was perfect for me. Last summer, after 3 years there, the landlord suddenly informed me that she was putting the property on the market for sale in two weeks. I was in no position financially to make an offer on it with no notice so I had to immediately start looking for a new place to live since I was no longer in a yearly lease. 

I moved into a house that is a dump compared to where I was, knowing I'll be moving out again as soon as my lease ends. It sucks. 

But the the positive side is that I should be in a great position to buy a house or condo this summer. And I'll be very happy to finally have my own place. One that I'm not at the mercy of a landlord, who might raise the rent. And I will never have to move out unless I choose to. 

Renting property isn't like leasing a car in that you build equity in property. A 10 year lease of a condo puts about $60k in the landlord's bank account. Not to mention added equity in rising property values. After a 'lifetime' of paying a house mortgage you can easily end up with $400k in equity these days. 

As as much as you love where you are now, I bet you'll be happier in a place that is your own. Consider this unpleasant experience a blessing in disguise. 

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oh my gosh thats a story even worse than my own!!  im glad it worked out for you

you're right about the equity again it shows how naive i am about the whole thing

i hope its all the cliches - everything happens for a reason and all that

[Anonymous]

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@Anonymous

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oh my gosh thats a story even worse than my own!!  im glad it worked out for you

you're right about the equity again it shows how naive i am about the whole thing

i hope its all the cliches - everything happens for a reason and all that

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I am a true believer in everything happens for a reason! Especially when it comes to housing and home buying. I moved into a new town on the intentions of renting a property that was going to be refinished. My family was staying in a furnished company house temporarily until the rental was finished. They ended up deciding not to finish the rental. This area is very small so rentals are  far and few between. I attempted to try and buy a home- denied.  We sat tight in the furnished house for over  six months until a small rental came available. We took the small rental with the intentions of buying a home eventually and are on a month to month rental agreement. Fast forward a few months- I was able to get approved! A home that has all of  the check marks literally fell into our lap.  We are now in negotiating with the sellers and although there is a long road ahead- I really feel and believe that all of these road blocks were meant to happen. And who knows this house could fall through but put us on the correct path.

Best of luck!