Ask Me Help Desk - Breaking a Lease during possible foreclosure

Hey everyone. I signed a lease approximately 2 months ago and shortly after moving in, I received a summons. The guy that delivered it said that I had the right to contact an attorney, including the attorney handling the case on behalf of the bank. He said I had a right to know what was going on as I'm listed on the summons as "Unknown Tenant 1 & 2" [my younger sister is on it too]. I called the attorneys and they confirmed that as far as they know, the case is still open and they have not received notice from the mortgage company that any action has been taken. I spoke to my landlord who originally told me that what is going on between the bank and her is none of my business and that I have no right to get involved. I told her to use my last month's rent [I originally paid her first, last and security] until I know exactly what is going on and then I will furnish her with whatever money is necessary [late rent, last month, whatever]. She refused that deal and agreed to furnish me with a letter from the bank on October 3rd which would confirm that everything was being handled. She now refuses to give me the letter and insists that my rent is in fact late [which she is now charging me a late fee for] and still says that I should mind my own business regarding the foreclosure. The mortgage company left a notice on my door this weekend that said to contact them immediately and also sent somebody out to take a picture of the exterior of the house [I wasn't dressed so did not get to speak to the mortgage company rep].

I've been advised that my lease is no longer valid as she put the property up for rent while it was already in the initial stages of foreclosure and I was not informed of this when I signed it. Can I legally break my lease now under these circumstances? If not, what can I do?

Edit: I'm in Miami so this would fall under Florida law FYI.

Quote:

Originally Posted by chrissstina

I've been advised that my lease is no longer valid as she put the property up for rent while it was already in the initial stages of foreclosure and I was not informed of this when I signed it. Can I legally break my lease now under these circumstances? If not, what can I do?

Hello c:

You were advised wrong. Your lease is valid and you owe the rent. Your deposit is NOT rent.

If you know the date the foreclosure is happening, then you'll know what date your present landlord won't own the house anymore. On that date, your lease will expire. Until then, you owe rent. If that date happens in the middle of the rental period, you will be entitled to a pro-rata refund for unused rent. Any time you stay past that date will have nothing to do with your present landlord. The new owners might want to continue renting to you. I don't know. You'll have to wait to see what happens.

Assuming you pay your rent, your landlord will have to refund your deposit. It really doesn't matter if you destroyed the house because the landlord doesn't have to fix it, so they'll owe you ALL of it.

Yes, it's a bummer to have gotten stuck where you are. Ok. Life doesn't always work out.

excon

Thanks for your help. I was also told surrendering was an option or that I could simply put a copy of the summons into an evelope and write the LL a letter stating that due to the current circumstances, I'm leaving. Is there any way I can surrender the property or break the lease legally?

Well this is an odd situation. The landlord is partially correct. Whatever problems they are having with their mortgage lender is none of your business up to the point that the foreclosure becomes official.

However, the fact they they rented the property under threat of foreclosure without disclosure of that fact, may be considered fraudulent and could void the lease. On the other hand, they may feel that they will be able to resolve the foreclosure and retain ownership so it really would not have any affect on you.

The one thing I am sure of is, as excon said, until the foreclosure is official you owe your rental according to the terms of the lease.

Another curiousity here is why the mortgage lender is even contacting you. Again you have no standing here. I think their contacting you is a breach of ethics.

What I would do, though is contact the lender or their attornies. Find out, when the foreclosure is scheduled for and how much time they will give you to move or whether they weill renegotiate the lease with you.

Thanks for you help Scott. The mortgage company actually just left a notice on the door. When you call it, it's an automatic system for a debt collection I think and they require an account number so that no information is released to the wrong person.

Quote:

Originally Posted by ScottGem

Another curiousity here is why the mortgage lender is even contacting you. Again you have no standing here. I think their contacting you is a breach of ethics.

My primary concern is not only losing my money to the LL but that within one week of moving in, people started knocking on my door with summons and notices. I'm addressed on it technically and my name was taken down and recorded. I think if she knew that this was the situation, she had no right, in "good faith", to list the property with a broker and allow me to rent it.

Quote:

Originally Posted by ScottGem

Well this is an odd situation. The landlord is partially correct. Whatever problems they are having with their mortgage lender is none of your business up to the point that the foreclosure becomes official.

However, the fact they they rented the property under threat of foreclosure without disclosure of that fact, may be considered fraudulent and could void the lease. On the other hand, they may feel that they will be able to resolve the foreclosure and retain ownership so it really would not have any affect on you.

The one thing I am sure of is, as excon said, until the foreclosure is official you owe your rental according to the terms of the lease.

Another curiousity here is why the mortgage lender is even contacting you. Again you have no standing here. I think their contacting you is a breach of ethics.

What I would do, though is contact the lender or their attornies. Find out, when the foreclosure is scheduled for and how much time they will give you to move or whether they weill renegotiate the lease with you.

Quote:

Originally Posted by chrissstina

I think if she knew that this was the situation, she had no right, in "good faith", to list the property with a broker and allow me to rent it.

Hello again, c:

I don't disagree with you in terms of her ethical responsibility. However, we're talking about her legal responsibility here. In my view, a seller has to disclose to a buyer any material defect that he knows about. A landlord does NOT have that same LEGAL responsibility toward a tenant.

excon