If I have a rental that is forclosed on, do I just lose the houses or will I be sued by the bank, just trying to understand what my consequences are, not that I didn't want to pay the mortgage, but I had a Meth user in one house that tore it up and cost me over $3000to fix up and he did not pay rent, I had another house that the guy did not pay rent for 3 months, there is no easy way to get these people out, so you have to use CC's to pay the Mortgage and when that dries up, you are SOL and can't pay the mortgage anymore. So I am just really trying to figure out what is going to happen..

Forget whether the property is used for rentals or not. That's really immaterial. If a property has a mortgage, payments for that mortgage need to be kept up. If not, the lender has a right to foreclose. If they do foreclose then you lose the property. It will be sold at auction or the lender will take over. If sold, you will still owe the balance of the mortgage.


What you should be doing is talking to the lender. Explain why you have been unable to keep up the mortgage. Explain that, as soon as you can get other tenants, you will be able to resume payments. They may agree to restrucutre the loan by adding the arrears to the end of the mortgage.

Please do not use PMS for follow-up questions


Hi, you answered a question of mine yesterday, but I had a couple ofmore questions.
1. If I know the property is going to be forclosed on, do I stop taking rent from the people?

2. Should I notify the tenants that the property is going to be foreclosed on?

3. One house is a duplex and the state pays both the rents for the tenants, is there some kind of legal recourse I will have for not paying the mortgage?

thanks ahead of time, I appreciate your advice.


1. No you continue to collect rent up to the time the property changes hands.

2. You are not required to. But it would be nice since they will be required to move unless the new owner allows them to stay.

3. I'm not clear on that, if the state is paying the rentals why aren't you keeping up the mortgage?

The state just started paying their mortgage, the people in it before started using meth and stopped paying rent, the police would not do anything about it because I did not actaully see them doing it. It took me a month and over $3000 to clean the place back up after they justj packed up and moved out one night. So now I got so far behind in Credit card payments I have been using rent money to catch those up. The mortgage company did work out a repayment plan, but I don't get enough in rent to cover the new payments. So I am back to not being able to make the entire payment they came up with. I tried the 3 month forbearance with them, but they said just because I was not able to get the place rented is no reason and they declined it. AND because I don't have 10% equity in either house, they won't refinance. ANY suggestions, and I really appreciate your help here. I have 2 little girls and I am trying everything to keep from losing everything I have worked for because of a couple of meth heads...

Again please do NOT use PMs for follow-up.

There's really not a lot I can suggest that you don't seem to have tried. Have you tried selling the properties even with a short sale?