We currently rent our home. About one week ago a letter from an attorney arrived to the property owner. It was a noticed called "Notice Required by the Fair Debt Collections Practices Act 15 usc 1892, ET SEQ". This notice states that it is sent as required by the Federal Fair Debt Collections Practices Act. It then gives the date the attorney's client gave them (August 6th) and the amount of the mortgage that is due. It then states that the property owner has 30 days from the date of the letter to dispute the debt or it will be assumed valid. It does not say that foreclosure has started but it does say that if they do file a lawsuit to foreclosure on the mortgage the property owner can still dispute the debt if they file before the 30 days. Now my question, does anyone know how fast foreclosure takes place after this kind of letter comes out. Obviously it's going to happen because our landlord told us he's in serious financial trouble. But I am trying to figure out how long I have to move. I don't want to come home and find my belongings out in my yard. Do renters have any legal rights on time? Someone had told me that the court gives the renter at least 30 days but I am starting to think that is not true. Any information anyone can offer would be greatly appreciated. I have never gone through anything like this before in my life and have no idea if laws are different from state to state, but we reside in Illinois. This is terrifying to us. My husband is pretty ill and the timing of this could not be worse. And to think we rented to avoid these kind of problems... Thanks in advance for any help you can lend.

If the foreclosure does go through you will be notified by the bank after the foreclosure is complete. The bank will do one of two things: (1) they will give you a written notice that your tenancy is terminated and you have to move out; or (2) they may honor the balance of your lease.

If they give you notice to move out then you will most likely be given at least 30 days to move. If you haven't moved out in the time they give you then they have to file a lawsuit for eviction. That can take anywhere from 2 to 6 weeks to be heard, depending on how busy the courts are in your area. If you appear in court and explain to the judge that you've been looking for a new place but haven't found one yet it is very possible that the judge will give you another 30 days or more before the eviction.

You will not come home and find your belongings in the yard unless you ignore the notices and court date. When the bank contacts you, see if you can negotiate with them to continue the lease or maybe even buy the property.

Thanks Lisa for the quick response. Would you know how the bank would even know that we are the renters and not the owner of this property. I asked our landlord if he ever told the county that he leases out the property and he said no. I also found out that the mortgage has not been paid since last February and the only notice that has come is the one I mentioned in my 1st question. This just seems now like this is a long time with no other notices. I know nothing else has come through because all mail of this sort comes directly to this address.

The bank probably doesn't know that the house is rented out. But they have to send notices to the mailing address that they have for the owner and they also have to send a copy to the property address, if it's different from the mailing address. The owner probably gave the bank a different mailing address when he started renting out the house so that the mortgage bills and statements would come to him rather than the property. So it's likely that the bank has been sending him notices all along to his mailing address.

Try to rest a little easier. If the bank is just starting a foreclosure action now it could take anywhere from 2 months to 2 years for them to complete it. Then you would have at least another 30 to 60 days after that to move.

If you're happy in the house then why not talk to the landlord or the bank about buying it? You might be able to get it for the outstanding amount of the mortgage.

I'm familiar with Illinois and the process there takes a minimum of 6 months from this point, as it's a judicial foreclosure state. In addition, to foreclose your rights as a renter they will need to notice you of any foreclosure proceedings so you should be getting all of the paperwork along the way addressed to "Jane and John Doe, unknown occupants".

Finally, once the foreclosure takes place the bank or the buyer of the property will have to take a separate action to evict you. I think chances are slim to none that the bank will honor the remainder of your lease should they end up with the property. You will be given at least 2 weeks notice from start to finish when the new owner gets possession of the property.

A couple of points. You must still contrinue to pay your rent or your landlord can have you evicted. Whether your lease is continue or not depends on who gets the property. If it is the lender, then they will probably want you out. If it's a third party, then they may allow you to stay depending on their plans for the property.

But, if the landlord hasn't paid. He may very well be amenable to selling you the house. Maybe the lender will allow you to assume the mortgage and either back load the arrears or you might have to bring the loan up to date. In either case, you may be able to get the home for a small investment.