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Senior Contributor
bichonmom
Posts: 3,318
Registered: ‎05-05-2011
0

Foreclosure on rental - Help!

I just found out that the house I'm renting is going into foreclosure. God only knows what my landlord has been doing with the rent I've been paying every month! Obviously, NOT paying the mortgage on this house! :smileymad:

 

I have a couple of questions I was hoping could get answered:

 

#1, How long does a mortgage have to not be paid BEFORE going into foreclosure? The letter I saw says that it's in pre-foreclosure and will go into foreclosure within 30 days. So, how many months was the rent not paid before this notice would be sent?

 

#2, Once the house goes into foreclosure, how much time will I have before I have to vacate?

 

Thanks!

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Established Contributor
namvet
Posts: 866
Registered: ‎09-22-2011
0

Re: Foreclosure on rental - Help!


bichonmom wrote:

I just found out that the house I'm renting is going into foreclosure. God only knows what my landlord has been doing with the rent I've been paying every month! Obviously, NOT paying the mortgage on this house! :smileymad:

 

I have a couple of questions I was hoping could get answered:

 

#1, How long does a mortgage have to not be paid BEFORE going into foreclosure? The letter I saw says that it's in pre-foreclosure and will go into foreclosure within 30 days. So, how many months was the rent not paid before this notice would be sent?

 

#2, Once the house goes into foreclosure, how much time will I have before I have to vacate?

 

Thanks!


  This site will give you the information you need about your rights as a tenant   www.tenantslegalcenter.com
 

Senior Contributor
bichonmom
Posts: 3,318
Registered: ‎05-05-2011
0

Re: Foreclosure on rental - Help!

Thanks for the link, but it says it's for San Diego. :smileysurprised: I'm not in California, so don't know how much it would apply. I've been Googling for info, but haven't found much info. 

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Established Contributor
thankfulheart
Posts: 619
Registered: ‎09-26-2011
0

Re: Foreclosure on rental - Help!

BTDT. I found out when the process server showed up at the front door. Felt like the rug was pulled right out from under me, esp since the landlord had been pushing me to sign to extend the lease.  Yeah, right, buddy.  I'm in FL and was told 90 days, so I immediately went in search of a new place, found one and moved out without paying the last month's rent.  Figured he'd already lost my deposit so I wasn't likely to get it back anyway.  I'm the kind that I couldn't sit there not knowing exactly when, so took it on myself to get out before I gave the jerk another penny.  He had not made any payments since BEFORE we moved in. :smileymad:

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Senior Contributor
bichonmom
Posts: 3,318
Registered: ‎05-05-2011
0

Re: Foreclosure on rental - Help!


thankfulheart wrote:

BTDT. I found out when the process server showed up at the front door. Felt like the rug was pulled right out from under me, esp since the landlord had been pushing me to sign to extend the lease.  Yeah, right, buddy.  I'm in FL and was told 90 days, so I immediately went in search of a new place, found one and moved out without paying the last month's rent.  Figured he'd already lost my deposit so I wasn't likely to get it back anyway.  I'm the kind that I couldn't sit there not knowing exactly when, so took it on myself to get out before I gave the jerk another penny.  He had not made any payments since BEFORE we moved in. :smileymad:



It's beyond me how someone can do that! Why isn't my monthly rental payment going towards the mortgage, like it's supposed to?!

 

I've also read that sometimes pre-foreclosure means that the owner is trying for a short sale, and I have a  hunch that may be what they're doing. I think that would give me less time, but I'm not sure.

 

I'm trying to find out how much time I have. It looks like the laws vary from state to state, but there is also some Federal statute about 90 days. I feel exactly like you described -- like the rug has been pulled out from under me.

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FrugalRican
Posts: 2,876
Registered: ‎02-02-2012
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Re: Foreclosure on rental - Help!

It's beyond me how someone can do that! Why isn't my monthly rental payment going towards the mortgage, like it's supposed to?!

 



 

In today's economy, nothing surprises me.
Start looking for a new place ASAP regardless of the outcome.

 

Good luck.

Follow my financial journey: http://www.frugalrican.com


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Frequent Contributor
germaine47
Posts: 305
Registered: ‎07-05-2011
0

Re: Foreclosure on rental - Help!

Hello, I had a neighbor that went through the exact same process as you did.  The bank gave him 90 days to find an alternative place to live and he did not have to pay anymore rent in the process.  It gave him time to find a USDA mortgage and move in to a home.  I don't know if your are in a position to purchase at this time but it is worth a shot.  I am renting at this moment and I inadvertently found out that my landlord is always late paying the mortgage on this home in which I am never late. I have one more month before I am ready for the pre-approval. Unfortunately I hate this has happened to you, I know that you are on pins and needles but call the owner of the loan and see what are your options, they may give you an option to buy.

 

 

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Valued Contributor
IOBA
Posts: 2,659
Registered: ‎08-13-2009
0

Re: Foreclosure on rental - Help!

bichonmom - I am sorry to hear what you are going through.

 

Typically - you can stay in the house through foreclosure.   Now that you know who the bank is, you can contact them and negotiate a rental term for AFTER the foreclosure.   You do NOT need to pay the bank rent prior to the foreclosure.

 

In a lot of cases, the bank will offer you money to move after the foreclosure.

 

Sometimes after foreclosure, the bank will auction off the house.   If that happens, then the new owners will usually offer you money to move.

 

The current owners would have a hard time winning an eviction case in court since the house is going into foreclosure.

 

I hope this makes sense and helps you.   I am not offering you advice - just information so you know what your options are.   You basically can stay in the house rent free for the duration of this rocky ride.  Your landlord has to go through a formal eviction process to get you out - and they'd likely loose.   The bank can't kick you out until AFTER the foreclosure is completed.   And usually, they will negotiate a rental term for you.   If it's auctioned, the new owners will likely pay you to move or negotiate a rental term.

Senior Contributor
bichonmom
Posts: 3,318
Registered: ‎05-05-2011
0

Re: Foreclosure on rental - Help!

Thanks for the replies. I'd love to NOT pay rent, especially since I'm going to have major moving costs. But if I don't pay, and they file an eviction against me, then my credit will be screwed up for another 7 years, so I don't see that as an option. It looks like I am going to have to talk with an attorney. I am still so shocked by this.

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EQ FICO 750 | TU FICO 761 (Walmart) | EX FAKO 767 | Goal: 800+

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mvc
New Member
mvc
Posts: 7
Registered: ‎01-29-2012
0

Re: Foreclosure on rental - Help!

I am sorry to hear this.

 

 

But it really depends on what state you live in.

 

 

We purchase properties at the trustee sale (foreclosure auction) and run into tenants with this problem all the time. Most of ours purchases are actually aimed to keep the tenant in place after the purchase... But once the auction sale goes through (at least in NV) you as a tenant have 90 days to stay BUT  have to stay current on paying the new owner the fair market rent for the property... after the 90 days, if the new owner so chooses, the lease can terminate (go month to month) with written notice. If you do not pay rent you will get an eviction filed.

 

Hope that helps.

 

 


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