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LXVlblapdog · Dec 27, 2010, 10:04 PM

So we found out in nov that the house we have been renting for the past 3 years is being foreclosed. Our lease is up feb 28, 2011 and the house is being auctioned on feb 1, 2011. My question is do we have to pay the lease for February or will that be the choice of whoever buys the property? Thanks

ScottGem · Dec 28, 2010, 05:10 AM

You have to pay the lease as long as you live there. However, I would wait until the auction is completed and contact the new owner.

Have you thought of trying to buy it? If you act now, the lender and owner may allow you to just take over the mortgage.

Fr_Chuck · Dec 28, 2010, 06:14 AM

If the house sells on Feb 1st, ( many times sales are put off so keep check on it) but Feb rent will go to who buys the house on the 1st.

joypulv · Dec 28, 2010, 07:15 AM

Auctions are often postponed, sometimes over and over. You also might consider proposing to the bank a lower rent on a month to month basis. You could show that you have put many belongings in storage to show good intent to vacate quickly. Some renters do very well these days paying really low rents for houses that are for sale, furnishing them sparsely, and taking good care of them until they have to move.

adthern · Dec 28, 2010, 07:31 AM

If this is a house, as opposed to a rental property (2-3 family) It is often the case that the new buyer will ask that the property be vacant when sold.

I bought a 2 family last year and there were occupants who were given very little notice (2 weeks) to move. So, I would listen as above and see what kind of deal the bank might be willing to give you depending on the market in your particular area. Also, you might consider having alternate housing plans, just in case. Check into the law in your area, regarding eviction, notice to quit, and foreclosures... there are some odd laws in some places that give tenants no rights and others that give them incredible rights (bargaining chip with the bank?).

ScottGem · Dec 28, 2010, 10:31 AM

Federal law that took effect in May of this year (as I recall, there is a link in a stick at the top of this forum) requires giving the tenant of a foreclosed property 90 days to vacate.

Occupied houses often sell better than unoccupied so banks who take possession of foreclosed properties may offer concessions to allow you to stay.

LXVlblapdog · Dec 28, 2010, 03:32 PM

Thanks for the answers. No, we don't want to buy because first of all we don't like the house, but also we're military and don't want to get stuck in a mortgage at the moment since this is not where we want to be long term. Thanks again