Hi, I just found out that my landlord is faceing foreclosure. This is a three unit rental property. All of the tennants including myself, have paid our rent every month on time. However, the landlord has not paid the mortgage since 12-01-07. He is still collecting the rent. We were advised not to pay the rent. As usual I have the rent. Should I continue to pay or withhold the rent and put it in a special account? :confused:

Anyone who suggested putting your rent money in a special account gave excellent advice.

As long as the landlord is still the owner of the apartments, rent must be paid to her/him. Failing to pay rent can/should result in an eviction. Landlord probably has plenty of time to avert the foreclosure.

Unless you have started some legal action against him, to make him pay, if you don't pay your rent to him, he may evict you.

He has to the last day on the foreclosure to pay it. And until that day he legally owns the property. If all of the renters have hired an attoreny, and are putting the money into an escorw account with the court, that may protect you from eviction, but until he is forecosed on he has not broken his rental agreement with you

Hi, Perhaps I lett our a few details when I posted my last question. Foreclosure was to occur on May 3 2008. I know that credit counseling was offered but I don't now the status of the situation because the letter and application was dated May 3.
It seems to me that If I pay my landlord to provide this roof over my head, and he does nt applied that money toward it, He has defrauded me. He's taking my money and using it for his on personal use instead of giving it to the mortgage company. How can this be legal?
If I continue to pay him rent and the bank foreclosures, I'll have no roof over my head, no first months rent, on security deposit, and no means to move. :(

I have heard many times, but cannot actually validate the legality issues, that people have put the rent into an escrow type of account. They have informed the landlord in foreclosure that his full rent payment will be available as soon as the foreclosure has been cured.

There is a good chance that he can still file to have you evicted for non payment, however, for him to do this, he has to take you to court. If when you appear in court, you can prove that the full rent is in an account, and available to pay after the foreclosure has run it's course, I would suspect the judge would certainly take your situation into consideration.

Good Luck to you!

I've merged your two threads. Its not a good idea to start a new thread on the same issue. Please add any follow-up as a reply to this thread.

Whoever told you to stop paying was giving you bad advice. Even if you put the rent in a special escrow account, the landlord can sue you since you are hastening the foreclosure by not providing him with funds he can use to stave off foreclosure. As noted, as long as he is the legal owner of the property, or unbtil you receive notice the property has changed hands, then you are required to pay rent to him. That's the end of that story.

Yes, this puts you between a rock and a hard place. Its very possible the landlord can no longer maintain the property and is trying to milk it for whatever he can before he loses it. But you can't do anything about that.

As for your security, the new owner is responsible for that. If they do not get it from the previous owner, they can sue him for it.

But once the foreclosure is finalized, your lease is terminated. The new owners will need to give you some time to move and you can petition the courts for more time.

It may be too late, but have you considered having the three tenants buy the building? If the landlord is going to lose it anyway, it might accept a small amount of cash and may even be able to assign the mortgage to the three families.

There was no type of fraud committed by the landlord. What he does with the money you give him each month for rent is irrelevant.

Yes, as long as he is legal owner of that property, he can do what ever he wants with the money, bet it on the ponies, or party till the cows come home. To make it short and pehaps a bit rude, legally it is none of your business what he does with the money.

I know it can and will effect you, but he does not have to account to you for what he does with that money,
And even after the foreclosure, he can sue you for any unpaid rents for the time he owned the rental that you did not pay.

But now I will even make it worst for you, if you did not have it bad enough, since he is losing the house, most likely has no money, after it is foreclosed and they ask you to move, he is not going to have any money to pay your deposit back, so you will end up having to sue him and hope he does not file bankrutpcy.