A couple of weeks ago my mother and aunt received a foreclosure on our rental property for our landlord. We are in the process of finding our own house to buy but our lease isn't up till September or October. We know that out duplex will be closed on before then and we cannot find any official rental law sites to look at to find out our rights. So I was wondering what are our rights and what are some sites that we can look at? Thank you so much. If you need more information let me know.

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Originally Posted by cutiepie022189

A couple of weeks ago my mother and aunt received a foreclosure on our rental property for our landlord. We are in the process of finding our own house to buy but our lease isn't up till September or October. We know that out duplex will be closed on before then and we cannot find any offical rental law sites to look at to find out our rights. So I was wondering what are our rights and what are some sites that we can look at? Thank you so much. If you need more information let me know.

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It varies somewhat by State - what State?

Also, if your lease expires in September and you heard about the foreclosure, you should be OK - I don't understand why you don't which month it expires, September or October.

Hello c:

I'm not sure what particularly you want to know. The salient factors are that your lease will be UP the day the foreclosure happens, and you'll have to vacate. Your deposit is being held by your present landlord. That is where you'll have to go for that. Yes, your lease is STILL in effect and yes, you STILL owe rent up until the date of foreclosure.

No, it ain't fair...

excon

PS> (edited) Actually, you'll owe rent AFTER the foreclosure too, if you stay beyond that date. You'll just owe it to the bank - not the landlord. Who knows, maybe the bank will want you to stay as a tenant. Why don't you write them?

As excon noted, you are obligated to pay rental under the lease until the date of foreclosure. At which time your lease is voided and you willb e required to vacate. Generally you will be given some time to vacate.

However, if you are looking to buy, why not make an offer on the house? If the owner is going to lose it in foreclosure, they may accept a tokewn payment to sell to you. You may get the bank to assign the mortgage to you as long as you bring the arrears up to date.

Depending on the state your in but in California this is a ongoing problem due to the market. But from first hand knowledge the rental I was living in was in foreclosure and the landlord was collecting rent which is a big No No! That is considered rent skimming and violates the civil code 390 & 391. Because the landlord is collecting money on a property that they are not applying towards the mortgage instead putting it in there pocket. My landlord had to repay me all monies back plus the bank foreclosing on it gave me a notice I think they called money for keys. Where they offered me money to move out so they were assured to get the property back in good shape with no damage and in a timely manner. But again this happened in California I don't know where you are from but you might want to check into it.

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Originally Posted by TinaLee34

But from first hand knowledge the rental I was living in was in foreclosure and the landlord was collecting rent which is a big No No! That is considered rent skimming and violates the civil code 390 & 391.

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First, the Code sections you refer to are 890-894. Second, the problem is not in collecting rent, but in not using rent payments to pay the mortgage. This is called rent skimming and a tenant who is victimized by this can bring suit against the landlord. But if a landlord aloows a property to go in foreclosure, its unlikely they will have funds to pay a lawsuit. Sounds like you got lucky.

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Originally Posted by TinaLee34

Depending on the state your in but in California this is a ongoing problem due to the market. But from first hand knowledge the rental I was living in was in foreclosure and the landlord was collecting rent which is a big No No! That is considered rent skimming and violates the civil code 390 & 391.

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Rent skimming just says that the landlord is supposed to turn the money he gets for rent over to the mortgage holder. It also apparently only applies in the first year that they own the property. So, those sections don't release the tenant of the obligation to pay rent.

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Originally Posted by froggy7

Rent skimming ... apparently only applies in the first year that they own the property.

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I missed that part. But clearly, a tenant cannot know if the landlord is or intends rent skimming. At least not until after the fact. As long as a lease is in effect, the tenant needs to pay their rent.