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fawn87
Apr 3, 2009, 12:40 PM
Does a non-paying tenant have any rights when the owner is doing a short sale?

What rights does a tenent have while owner is doing a short sale?

If you are a owner and you are doing a short sale, can they still forclose on you?

excon
Apr 4, 2009, 06:47 AM
Hello f:

In terms of short sale or foreclosure, whether a resident pays rent or doesn't, wouldn't make any material difference.

The term "short sale" has to do with the landlord and the bank. It has NOTHING to do with the tenants and should be considered like any other sale of the property... That means, that the rental agreement is BINDING on the new owner no matter HOW the new owner acquired the property.

A short sale ENDS the foreclosure.

excon

Fr_Chuck
Apr 4, 2009, 07:04 AM
Except in California that has some special laws on foreclosure.

If a tenant is not paying, the landlord can evict the tenant no matter what the status of the house is.

In a short sale, it is just a sale of the home, another person is buying it just for a little less than is owed and the bank is accepting that, So for the tenant, a short sale or a sale for 100,000 over loan makes no difference.
In a short sale, the lease or rental agreement stays in force.

In a foreclosure, the lease is broken at the time of sale of the house.

Yes yes a non paying tenant has the right to be evicted for not paying