Ask Experts Questions for FREE Help !
Ask
    needhelpfast's Avatar
    needhelpfast Posts: 2, Reputation: 1
    New Member
     
    #1

    Sep 24, 2007, 11:45 PM
    House being foreclosed and we are renting? Landlord didn't pay!
    We are renting a house in PWC virginia. The other morning someone was taken pictures of our home, My mom asked why they said the house is being foreclosed on Sept 28 at 11 am and to go look in Washington post and its listed on the 12 and the 19th. It just so happened it was the 19th. Sure enough it was there! Its being foreclosed. We can't get our landlord to pick up his phone. Finally he called back yesterday and told us he's trying that he didn't know it was being foreclosed and to give him until tomorrow to see if he can save it. What are the changes he will save it and how long will we have if we have to move. Our house is being rented for 1450.00 which here is really cheap. The house payment on this house the GMAC bank that has the loan said his loan amount is 2000 a month they don't understand how he's only charging us 1450.. will we have to move if so how long do we have what's the chance he can save it? Should we start packing? Please help!! In really bad need
    rockinmommy's Avatar
    rockinmommy Posts: 1,123, Reputation: 82
    Ultra Member
     
    #2

    Sep 25, 2007, 10:01 AM
    Well, to save it he'll have to make an agreement with the mort. Company. He'll have to catch up some or all of what he owes and then adhere to a payment plan they set out for him if they let him pay in part. As soon as he breaks the agreement or falls behind at all it will go right back to foreclosure. There's no telling what the chances are he'll be able to save it. It just comes down to how much money he can come up with.

    If it does go to foreclosure the house will be auctioned off on the 28th at 11am. Some houses are sold to private individuals/investors/etc. Sometimes the mortgage companies buy them back themselves. They basically drive the bid too high for anyone else to want it, or they just pull it from the sale. A lot of that has to do with how much is owed on the property vs. the value.

    If the landlord doesn't stop the foreclosure it's probably worth going to the sale. That way you'll know if someONE buys it, or if the mortgage company is hanging on to it, etc. If a person buys it I'd recommend just approaching them. Tell them who you are and see if they'll agree to some sort of rental agreement to give you time to find another place. If they're not willing or the mortgage company retains ownership you'll be given notice to vacate. It varies anywhere from 1 day to 10 days depending on state and local laws. If you're not out within that time the owner can file in county court to have you evicted. That process takes another 2 - 4 weeks or so. If you still don't voluntarily leave they can unlimately have the sherrif come throw you out.

    Good luck. Sorry you're having to deal with this.
    Karla in TX
    P.S. How long has the LL owned the house? The longer he's had it (the more equity he has) the more likely it is to sell at auction. Is there any way you/your mom would be interested/able to buy the house? If so, you may be able to help the landlord save it from eviction and purchase it at a bargain price.
    needhelpfast's Avatar
    needhelpfast Posts: 2, Reputation: 1
    New Member
     
    #3

    Sep 25, 2007, 10:11 AM
    Karla in TX
    P.S. How long has the LL owned the house? The longer he's had it (the more equity he has) the more likely it is to sell at auction. Is there any way you/your mom would be interested/able to buy the house? If so, you may be able to help the landlord save it from eviction and purchase it at a bargain price...

    He has owned it since July 28th 2006 we have lived here since march 1 2007. So over 1 year he's owned it. We can't buy it but, we are going to take your advice and go up there to find out who gets it and try to talk to them, thanks but do you think we will have to move?
    rockinmommy's Avatar
    rockinmommy Posts: 1,123, Reputation: 82
    Ultra Member
     
    #4

    Sep 25, 2007, 10:21 AM
    Quote Originally Posted by needhelpfast

    he has owned it since july 28th 2006 we have lived here since march 1 2007. so over 1 year hes owned it. we can't buy it but, we are going to take your advice and go up there to find out who gets it and try to talk to them, thanks but do you think we will have to move?
    Eventually, you'll have to move. That is unless someone is buying it to use as a rental house and you can get them to lease it to you.

    Based on the short amount of time he's owned it I would guess that it will go back to the morrtgage company. Again guessing, they'll get around to asking you to leave at some point in the next few days - weeks and will eventually evict you if they have to.

    I'd start today looking for another place to live. That way on Friday you'll be prepared to follow through with leasing something else if necessary. If the mortgage company gets it they can move really fast or really slow... it's very unpredictable, but you'd eventually have to leave.
    ange_in_mich's Avatar
    ange_in_mich Posts: 1, Reputation: 1
    New Member
     
    #5

    Oct 15, 2007, 04:00 PM
    We are having the same trouble! Today my landlord called and left me a message (she knows when I am at work and not able to answer my phone) stating that we have to move out by the end of the month because she is losing her house. Roughly 2 months ago there was a notice on my front door stating that the house was being foreclosed because of failure to pay taxes (take note, you have to fail to pay your taxes for 3 consecutive years before the state of Michigan can foreclose), and that there would be a hearing in February of 2008. I called the landlord when I got the notice and she told me that it was being taken care of and it was nothing I would have to worry about.

    I told the landlord today that she had to put any notices in writing and give me the 60 days that my state requires. She argued with me, and I let her know that I had to go back to work. When I got home from work there was another message from her, so I called her back. When I tried to call I got a message stating that the phone number was disconnected. I called her daughter and was given the correct number. So I called her back, and she said that as of today she does not have the house.

    I am upset! I am renting for a reason! I cannot buy a house because I was divorced just a few years ago, and my ex husband really messed up our credit (but don't worry, I am working on fixing it; it just takes time)

    Anyway, I am sorry that I do not have an answer to your question but I thought I would share the fact that you are not alone. I wish your family the best, and I will keep you in my prayers.

    Ange
    kimberyjump's Avatar
    kimberyjump Posts: 1, Reputation: 1
    New Member
     
    #6

    Feb 11, 2010, 11:14 AM
    Obama passed a law that protects you. It is the Helping Families Save Their Home Act. It states that if the home is foreclosed upon that your lease is still honored.
    TENANTS WITH A LEASE

    If there is a year-lease contract between the landlord and the tenant, and the property is foreclosed after May 20, 2009, the bank must recognize that lease. Tenants, in this situation, have the right to stay in the property until the end of that year-lease. However, the lease must have been in existence before the “Notice of Default” (NOD) was recorded. The NOD marks the beginning of the foreclosure process. Additionally, a real tenancy must exist for this to apply. Otherwise, the occupants have only 90 days to vacate the property.

    Similarly, if tenants have a month-to-month lease, they are entitled to only 90 days before the bank can take steps to evict them.

    PAYING RENT BEFORE AND AFTER FORECLOSURE

    In order to prevent breaking the lease, the tenants should abide by all conditions of the lease and continue to pay rent to the owner who holds the rights over the property and the lease.

    Before the actual “Trustee Sale,” which takes place at the end of the foreclosure process, the current landlord of the property is entitled to collect rent because he still owns the property. After the “Trustee Sale;” however, the person who purchases the property or the bank will inherit the lease entitling them to collect rent.

    Additionally, regardless of there being a lease or not, if the former landlord was responsible for the utilities, the bank must continue to provide utility service. It is illegal for a bank or a real estate agent to try and force a tenant out of the property by turning off the utilities, also referred as “Constructive Eviction.” Banks can be liable up to $100 for each day that utility service is turned off.

    CHECKING FOR THE NOTICE OF DEFAULT (NOD)

    Checking to see if the lender has began the foreclosure process on the property by recording the “Notice of Default” is simple. A tenant can call the county's tax assessor's office where the property is located. They know when the NOD was filed and if there is “Trustee Sale” scheduled.

    BREAKING THE LEASE

    If the property is sold at the “Trustee Sale” or after the property has become an REO property, the new buyer will inherit the tenancy and the lease under the new federal law. However, this new owner can break the lease and give the tenant 90 days to vacate the property if he will take possession and live in the property.

    EVICTION NOTICE

    Regardless if there is a lease or not, landlords and banks cannot serve tenants with an eviction notice until after the 60 or 90 days have passed. If a tenant has been served prior to the 60 or 90 days they should seek legal help.

    CASH FOR KEYS

    Banks are not in the business of managing properties, they are in the business of lending and investing; therefore, they will frequently offer money for tenants to relocate. Usually banks will offer tenants between $2000 and $5000 to relocate within 2 weeks. This allows the banks to sell the property immediately free of tenants. Tenants that have the ability to relocate quickly within the time frame offered by the bank, instead of the time allowed by this federal law, could use the money for a security deposit elsewhere.

    Nevertheless, tenants should understand that they are entitled to 60 or 90 days to vacate after a foreclosure if the option offered by the bank is not beneficial to their situation.

    Finally, tenants needing specific legal advice regarding their situation should contact their attorney.
    AK lawyer's Avatar
    AK lawyer Posts: 12,592, Reputation: 977
    Expert
     
    #7

    Feb 11, 2010, 12:57 PM
    Quote Originally Posted by kimberyjump View Post
    obama passed a law that protects you. ...
    FYA:
    Congress passes laws. The president doesn't. He only signs them.
    nanax6's Avatar
    nanax6 Posts: 1, Reputation: 1
    New Member
     
    #8

    May 28, 2010, 10:42 AM
    We are in Washington State, My daughter has been renting a place for over six months and received a notice on her door that the place is in default. A month ago she thought it strange when her yard was being mowed, she asked the guy what he was doing and he told her the bank had sent him to do maintenance, they had no idea anyone was in the home. She relayed that to the gal who has been collecting rent for the owner, she just shrugged it off. Now the lady is wanting her to make a deposit on the place for cleaning, where the agreement was if my daughter painted and cleaned carpets it would be waived. Unfortiantly there was no written agreement on that. A contract was signed but the manager of property said she needed to get a copy, she has yet to receive it. Should she contact the bank?
    cali340's Avatar
    cali340 Posts: 1, Reputation: 1
    New Member
     
    #9

    Sep 3, 2010, 04:03 PM
    During this time of economic hardship, many new laws are being enforced to help people get out of debt and prevent foreclosure. Such laws are coming into play in the national landscape as well being localized on state levels. What the new federal foreclosure law states is that residents of homes that have been foreclosed have 90 days to vacate the premises without the necessity to make mortgage payments during that time. These rules became a federal law in May 2009 when President Obama signed the law named “Protecting Tenants at Foreclosure Act of 2009” into effect. This new law is most important for lenders and homeowners facing foreclosure to understand.

    With that being said, it sounds like a tenant doesn't have to pay rent if the landlord isn't paying.
    Soxnsyd's Avatar
    Soxnsyd Posts: 1, Reputation: 1
    New Member
     
    #10

    Oct 3, 2010, 09:06 PM
    Did you know that you can legally stay in your home no matter what your bank/lender says(threatens you) with. You have so many legal rights as a homeowner and nobody especially these banks want you to know them. You are supposed to do as everyone says and do not dare ask questions. Ha... not true. Listen up people and this is not a joke i urge you to do the following... step 1.) look at your own promissory note. Is it signed by the lender? If not fraud has most likely been committed against you!!
    Step 2.) fight back and learn all of your legal rights to defend yourself from evil bankers.


Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Renter rights, renting foreclosed property. [ 8 Answers ]

I am renting a property that was recently started the foreclosed process. However, I am veryu concerned because I called the landlord and he acted as though nothing happened, and I want to know if I should not pay the next two months rent, so I can save and move out to cover my moving expenses and...

Social Security + Medicare. Didn't pay ! [ 1 Answers ]

Hi, This is in regards to your response on this thread. https://www.askmehelpdesk.com/taxes/s...are-21999.html I have a couple of questions if anyone can help... My employer doesn't deduct my Social Security since I was on H1B (oct 2005). I think he is not aware of the fact that I am also...

Foreclosed Landlord.my rights [ 4 Answers ]

I'm leasing a condo in the state of Texas from someone that owns two at my property. The HOA has indicated to me that my landlord has not paid his HOA fees in months, and one of his properties has been foreclosed upon. They've asked me to pay my rent to them under the auspices that their...

What if your landlord sales the home while you are renting? [ 2 Answers ]

We have a rental agreement until 10/30/2006. We just found out that our landlord has sold the house. I know our contract is still good until Oct. but could we move out without penalty or does our contract transfer to the new owner? We live in Florida.


View more questions Search