:confused: I live in Kansas City, KS and was just informed by the property manager that the business that owns my house is claiming bankruptcy and had NO intentions of informing any of their tenants in advance. The property manager has informed me that it could take anywhere from 1-6 months, and I can live here rent free until I receive a letter in the mail stating that I have 30 days to move out. Is this correct? Is there anyway of getting our security deposit back? How can I possibly find out more about the filing, so that me, my husband and 8 month old son have a little time to prepare? I'm not sure if we should start looking for a place now, or wait a couple months and save up some extra money? HELP... this has never happened before and I don't know what to do?

No its NOT correct. That your landlord is going bankrupt has no bearing on you. You have a signed lease and are obligated to make payments as normal. If the property is foreclosed on you will be given some notice in which to find some place else to live. If you are on a month to month lease, then you can move with 30 days notice so I would start looking for a new place.

You could, also, take your chances that someone will purchase the property and just renew the leases.

But you must continue to make your rent payments. I would, however, pay only by check or money order so you have a record of the payments.

:confused: I live in Kansas City, KS and was just informed by the property manager that the business that owns my house is claiming bankruptcy and had NO intentions of informing any of their tenants in advance. The property manager has informed me that it could take anywhere from 1-6 months, and I can live here rent free until I receive a letter in the mail stating that I have 30 days to move out. Is this correct? Is there anyway of getting our security deposit back? How can I possibly find out more about the filing, so that me, my husband and 8 month old son have alittle time to prepare?? I'm not sure if we should start looking for a place now, or wait a couple months and save up some extra money?? HELP...this has never happened before and I don't know what to do??
****I am not an attorney, and this should not be construed as legal advice.****

Contact your local courthouse and find out where foreclosure actions are filed.

You'll probably need to go down there, but call ahead so you know where you're going.

It can be called the Recorder's Department, Register of Deeds, or some such.

Tell them your situation and ask them how you can access the public records regarding the property you live in. Get a copy.

Ask them if they know how long the foreclosure process takes, and if there's a redemption period.

If they won't help you, there are typically free legal services in most major metropolitan areas that can assist with landlord-tenant issues. You could also check while you're at the courthouse where they conduct landlord-tenant business to find these resources.

In many states, the leases run with the land, so the new owner has to honor the existing lease. You'll want to check with an attorney to see if that's true in cases of foreclosure.

Technically, you're still a party to a contract, so the foreclosure issue notwithstanding, you're still liable for rent payments... so don't go spending that money. If you're not going to submit payments, set it aside, just in case.

It may turn out that the transfer of ownership has little effect on your situation.

Some clarifications here. If the property is sold then the new owner will have to owner all existing leases. However, if the property is foreclosed on that will generally not be the case.

Hello mouth:

I think the information you have gotten so far is pretty good. However, I have a different slant.

IF you can get your property manager to put her "free rent" notice in writing, then I would consider the notice to be an amendment to your lease, and it would be binding on them.

What?? The property manager doesn't write leases?? I think they do.

excon

IF you can get your property manager to put her "free rent" notice in writing, then I would consider the notice to be an amendment to your lease. In that regard, it would be binding on them.

What??? The property manager doesn't write leases??? I think they do.

excon

I would agree that a written stmt from the Property Manager that you don't have to pay rent would absolve you. Are you going to get one? The chances are slim and none. If the PM did give you such a written assurance, she could then be sued by the landlord and required to make up the rent she told you not to pay. So the PM has no incentive to put such a thing in writing.

Hello again:

It's entirely possible that the owner (who hasn't a clue about bankruptcy), told the PM to make that announcement.

Lots of unqualified people have become landlords recently. This pronouncement doesn't surprise me any more than a lot of stuff I read here does. If the OP has a shot at living for free, I think we should advise her to take it. She has no obligation to the landlord beyond what's written.

excon

Let's all back up a minute here. The OP said that there is a "business" that owns the house. So if the business financed the house then most likely the business signed an "Assignment of Rents and Leases" at the time of financing. That means that the lender can require the tenants to pay the rent directly to the lender if the loan goes into default.

If the business files for bankruptcy then the trustee for the business can choose to accept or reject the leases. If the trustee chooses to accept them then business continues as usual and the tenants must continue to pay rent. If the business rejects the leases then the property would be transferred to the lenders but NOT BY FORECLOSURE. So I can't say for sure without reading the loan documents whether the lender would be required to honor the leases but I believe that it would.

If the property manager gives the tenant something in writing stating that the tenant is no longer required to pay rent then the bankruptcy court would find that to be a preferential transfer in avoidance of creditors and it would be nullified.

So, to the original poster I have two pieces of advice: (1) continue to pay rent as required in your lease; and (2) start looking for a new place to live. Ownership of the property where you currently live is going to be in dispute for awhile and you can't count on regular maintenance being done if the business that owns the property is filing for bankruptcy.

As for your security deposit, it is unlikely that you will see it again. Your best bet right now would be to reach an agreement with the landlord (through the property manager) that you are giving 60 days notice and your security deposit will be applied to the rent due for that 60 days. This way you have plenty of time to look for a new place and you won't be paying anything during that time. If the landlord agrees then MAKE SURE YOU GET IT FROM THEM IN WRITING.

Good luck!

Yeah I think we missed the business angle.

So yeah you need to find a new place. Assuming you don't have a long term lease. If you do, I would give notice and tell them to apply the security towards the last months rent. I would then, make sure you did a walk through to show there was no damage when you left.

:confused: I live in Kansas City, KS and was just informed by the property manager that the business that owns my house is claiming bankruptcy and had NO intentions of informing any of their tenants in advance. The property manager has informed me that it could take anywhere from 1-6 months, and I can live here rent free until I receive a letter in the mail stating that I have 30 days to move out. Is this correct? Is there anyway of getting our security deposit back? How can I possibly find out more about the filing, so that me, my husband and 8 month old son have alittle time to prepare?? I'm not sure if we should start looking for a place now, or wait a couple months and save up some extra money?? HELP...this has never happened before and I don't know what to do??
My lease was up at of 1 March 2007... and I have yet to of been offered to sign a new lease (it was my husband and I's intent to sign a new lease). The "business" that owns our house is a husband and wife (they call themselves M&H Rentals) , that merely own a couple properties, and the property manager is their best friend (or at least was)... it all feels kind of shady... aparently... the PM is being screwed out of money as well... and has told me that I can leave whenever I want, and I can take anything from the house with me too (of course I wouldn't) and it all feels kind of shady/vengeful... I also have NO contact with the ACTUAL owner of the house, and never did... my husband and I always contacted the "PM" to have things fixed, and she picked up our rent checks. She's now informed me that she is moving an hour away and will no longer be taking the rent checks. NOW who am I supposed to leave the rent check with? Should I stash the cash and wait to see if anyone comes asking for it? And who am I supposed to inform now when I'll be moving out?

... feeling a little duped?

Since you are now on a month to month, you can give leave snytime adter giving sufficient notice, generally this is one full rental period unless the lease calls for more. I wouldn't listen to the PM who obviously has an axe to grind.

Forget what the PM is telling you. If you're ready to give notice, send it in writing to the address of the landlord that's written in the lease. I also suggest that you send them a letter requesting that your security deposit be applied to your last month's rent. Send the letter by regular mail and certified mail, return receipt requested.

There is no address on the lease. Our rent checks were picked up, and we called the PM cell phone if something needed to be fixed. And honestly, we don't really want to move out yet. My husband was involved in a car accident in January and broke both wrists and had to have surgery. He's out of the casts now, but still going through physical therapy and currently unemployed. We're kind of in a financial bind, and if we could continue to stay for a couple more months, and perhaps save the rent... we'd have a leg to stand on when it was time for us to pack up and move. Is that bad?

You CAN'T save the rent. You are legally bound to make the rent payments on time in the manner described by the lease (or the manner you have been paying). So forget even trying.

The best you can hope for is that the checks aren't picked up, but you NEED to write out the check and have them ready for pickup when due.

You CAN stay, but you have to be prepared that someone will foreclose on the property and order you out on short notice.

If you can make an agreement with the landlord to have the security deposit applied to your rent then you will be able to live there for 1 or 1.5 months without paying rent. It depends on how much of a security deposit you originally provided. But you will have to get this agreement in writing from either the PM or the landlord.

Try to get this in writing from the PM. If she won't provide it then you'll need to get the mailing address or contact info for the landlord from her.

Thank you... I'll write the rent checks out, try to get the contact information for the actual landlord, try to contact him and work some sort of an agreement out for the deposit, and wait for the checks to be picked up. I completely understand that the PM is just trying to get back at the landlord for her losses, but in the long run it's going to cause me trouble down the line. I'll HOPE the checks aren't picked up, but I won't count on it. And start looking for a new place to move. You've all been sooooo helpful trying to sift through the BS (pardon my language) and figure out the legal thing to do. Again, I thank you all!

Glad to assist. Good Luck!