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maddy8 · Aug 11, 2010, 11:25 AM

We have been allowing a family to live rent free in a home we own, that is now in foreclosure in FL. There was a "fake" amount of money saying they paid rent on a "fake lease" that they only needed to register their children for school in the district. Now we have asked them to move out and they are asking to stay under the new "protection law of 2009" They are asking to backdate another lease with a $0 rental amount dated before the foreclosure to allow them to stay more time for free. Can I be in trouble for this? Won't the bank want some sort of money from them, even if the lease says $0 or $10 or $100, won't they want more? Also I am filing Bankruptcy and the home will be included, will this delay me being able to file?

excon · Aug 11, 2010, 11:29 AM

Hello m:

The bank that foreclosed doesn't care about your relationship with the fake tenant. It's got NOTHING to do with them. Once they took over the house, they had the option of removing them or not. But, that's on THEM, though - not on you.

excon

maddy8 · Aug 11, 2010, 11:33 AM

We just got the paperwork stating the foreclosure process is starting, we notified them and now they are asking for a new lease so under the new law they will be able to stay longer for free. See what I mean?

excon · Aug 11, 2010, 11:52 AM

Hello again, m:

I understand. You don't. Whatever lease you have with the tenant ENDS with the foreclosure. The BANK is NOT obligated by ANYTHING you do or don't do.

You mention some new law that contradicts what I just told you. I'm not aware of this law. If it is INDEED, a law, you should be able to find it online and supply a link to it so I can read it for myself. Should you do so, I'll be happy to admit my mistake.

But, even IF there IS such a law, your obvious attempt to fraudulently thwart it, will invalidate any lease that MIGHT have been covered by this, as of yet, unknown law.

excon

DownUnder · Aug 11, 2010, 04:28 PM

I can't find anything about a protection law of 2009 either,but the bank is under not obligation to anyone. They can do what they want after all it is there property once its foreclosed on. I would be concerned about using any thing fake" where a bank is concerned.

ScottGem · Aug 11, 2010, 04:42 PM

There is a law that requires the new owner of a foreclosure to give the home owner 90 days to vacate. The foreclosure voids any lease but I'm not sure if the 90 applies to a tenant. The law is referenced in a sticky not on foreclosures at the top of the Real Estate law forum.

maddy8 · Aug 11, 2010, 05:51 PM

http://files.daneforeclosurehelp.org/new_rights_for_tenants.html

Here is one, there are lots more, but this is the most quick I could find right now.

http://files.daneforeclosurehelp.org/new_rights_for_tenants.html

The new law states even after foreclosure the bank has to honor the lease agreement to the term up to 6 months, or if you are month by month tenant they have to give 90 days to vacate after a foreclosure.

If they were paying me rent, they would have been due for a lease revision about 4 months ago so they would have 8 months on the lease left technically. I would prefer to be done with it and not have to worry about it anymore, I am losing enough as it is than to have to worry about this on top of everything else. I just feel like I am leaving them homeless and without a place to live and they are making me feel like this is my obligation. I understand you may feel like I am being fraudulent, and that is not my intention or my wishes... which is why I posted a question on here after researching 2 days.

maddy8 · Aug 11, 2010, 05:54 PM

http://www.occ.treas.gov/ftp/bulletin/2010-2a.pdf

This one may be easier to read.

Fr_Chuck · Aug 11, 2010, 06:08 PM

The issue will be of course that you owe taxes of course on all the rent you were collecting, were you reporting it as income, and showing money you were paying ( when you paid) the payments as expenses.

As a landlord you have a legal obligation to report any rental income. And they have a lease to prove you were making income, since you did not evict them for non payment.

So at this point, you may even want to consider evicting them for non payment if you want to stir up the pot, there is a lease in place, and they are many months behind in it.a

A lease at less than normal rates will be considered a fraud and could be acted upon it as such, and they could claim it was never a valid lease since it did not include proper consideration.

maddy8 · Aug 11, 2010, 06:29 PM

I had no idea. They have never paid rent, they were allowed to live there for free (family, if you haven't guessed by now) because I was relocated to another state where I am renting. My company was paying for my rent at my relocation site, and I was continuing to pay my Mortgage just as I would have otherwise, but then I lost my job... and all downhill from there. The Bank has been unwilling to work with me, I haven't even spoke to someone in the USA since this whole thing started and this is where I am now.