I just moved out of a place that went into short sale. My landlord told me when I was renewing my lease in April that she was going through a loan modification, but she never told me she had stopped paying her mortgage. I found out through another friend in the industry that she wasn't paying her bills. I live in California.

So how do I sue her for all of the money I paid in rent that she never applied towards the mortgage?

You didn't agree to give her money which she would use to pay her mortgage. You paid her rent because you lived in property she owned.

You have no grounds for a lawsuit based on what she did with the rent money.

You had a lease? Why did you move out? Did someone buy out the balance of your lease?

..You have no grounds for a lawsuit based on what she did with the rent money. ...


Maybe. One of the two sticky's at the top of this subforum has a link to a California "rent-skimming (http://law.justia.com/california/codes/civ/890-894.html)" statute. Check it out.

But I agree with you JudyKayTee to this extent: OP doesn't say why he/she "moved out". If OP voluntarilly moved out, it is arguable that he/she wasn't damaged by the LL skimming the rent.

JudyKayTee

Did I mention I live in California? Apparently there is a law that says that if you own a property, and someone is paying you rent, you are LEGALLY required to pay the mortgage on that property if there is a lien holder. Check it out.

No one bought out the balance of my lease. She had a buyer, who intended on living in the home, and the process was moving forward. I gave 30 days notice and moved out before I was forced out.

If you don't know the California laws, please don't bother to respond.

JudyKayTee

Did I mention I live in California? Apparently there is a law that says that if you own a property, and someone is paying you rent, you are LEGALLY required to pay the mortgage on that property if there is a lien holder. Check it out.

No one bought out the balance of my lease. She had a buyer, who intended on living in the home, and the process was moving forward. I gave 30 days notice and moved out before I was forced out.

If you don't know the California laws, please don't bother to respond.


I am reading this: ""Rent skimming" means using revenue received from the rental of a parcel of residential real property at any time during
the first year period after acquiring that property without first
Applying the revenue or an equivalent amount to the payments due on
All mortgages and deeds of trust encumbering that property."

I saw no indication that this was within the first year of your landlord's ownership of the property.

What are the grounds for your proposed lawsuit? You are not a party to the rent skimming. You moved out voluntarily.

And please don't even attempt to dictate who will answer your questions and in what manner. If you knew the law, why did you ask the question (and, by the way, I still don't believe the law as written pertains to you.) Of course, you could always retain an Attorney and pay for an opinion.

And, AK, thanks for the good catch.

I still don't think a rent "rebate/refund" is in order - OP lived there. Why should OP live for free?

I still don't think a rent "rebate/refund" is in order - OP lived there. Why should OP live for free?

Good point. I was assuming that OP paid at least one month in advance and didn't get to live in the premises for that period. But you know what they say about "assume". :)

If you don't know the California laws, please don't bother to respond.

And if you don't know the laws (which is why I assumed you asked the question) then don't criticize others.

Judy beat me to it. I'm familiar with the law you refer to and its not as cut and dried as you seem to think it was. The law was designed to stop people from buying a rental property grabbing the rent and letting the property go to foreclosure. Hence the restriction on the first year of ownership.

There are other considerations here, You say you moved out. Since you signed a new lease in April, did you break the lease? What were your grounds for doing so?

But based on the facts you have given us, I don't see that the law refers to you nor that you can recover anything. In fact, the landlord may have a case against you for breaking the lease.

You owe Judy an apology.