Ask Experts Questions for FREE Help !
Ask
    fawn87's Avatar
    fawn87 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Apr 3, 2009, 12:40 PM
    Short sale & tenant laws
    Does a non-paying tenant have any rights when the owner is doing a short sale?

    What rights does a tenent have while owner is doing a short sale?

    If you are a owner and you are doing a short sale, can they still forclose on you?
    excon's Avatar
    excon Posts: 21,482, Reputation: 2992
    Uber Member
    		  
    #2

    Apr 4, 2009, 06:47 AM

    Hello f:

    In terms of short sale or foreclosure, whether a resident pays rent or doesn't, wouldn't make any material difference.

    The term "short sale" has to do with the landlord and the bank. It has NOTHING to do with the tenants and should be considered like any other sale of the property... That means, that the rental agreement is BINDING on the new owner no matter HOW the new owner acquired the property.

    A short sale ENDS the foreclosure.

    excon
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
    Expert
    		  
    #3

    Apr 4, 2009, 07:04 AM

    Except in California that has some special laws on foreclosure.

    If a tenant is not paying, the landlord can evict the tenant no matter what the status of the house is.

    In a short sale, it is just a sale of the home, another person is buying it just for a little less than is owed and the bank is accepting that, So for the tenant, a short sale or a sale for 100,000 over loan makes no difference.
    In a short sale, the lease or rental agreement stays in force.

    In a foreclosure, the lease is broken at the time of sale of the house.

    Yes yes a non paying tenant has the right to be evicted for not paying
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Tenant -- short sale of property [ 7 Answers ]

We have been tenants for a year and half and found out that the property is in foreclosure and the landlord has negotiated with the bank for a short sale. We have a 2 year lease. Does our lease stand with the new buyers? Or do we have to vacate? If so, is the California law a 30 or a 60 day...

Short sale [ 1 Answers ]

Hi, The house I am purchasing is in short sale, and it was appraised for less than the asking price. My agent told me that because of what the home was appraised at, the bank is not going to fund more money than that, therefore my contract is null and void. Do you think I will have to...

Short sale [ 1 Answers ]

I am in the process of trying to do a short sale and have a offer pending bank approval what is the options if it is not approved and is a short sale terrible on a credit report

Short sale [ 1 Answers ]

How long does the owner get to have the house under short sale? Is there a time frame before the lender will take it back and foreclose on the house?

FHA short sale [ 4 Answers ]

I sold my house over 4 years ago via a short sale because I had been laid off and could no longer afford to pay my monthly mortgage. I received a letter in the mail yesterday, Feb 22, 2007, from HUD saying that I owed them $4900. I can only assume that this is from the property that was sold 01/03,...

View more questions Search