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rbyslyprs · Feb 19, 2008, 04:07 PM

I rent a home in California that apparently is in foreclosure. I rent through a management co and they say they have not been able to reach the owner for several months. The Management co is holding 4 months rent I have paid since they can not get into contact with the owner. They also said they manage several of the owners properties and they are all in foreclosure. They reduced my rent $150 for the inconvience of the situation. So my question is where is my rent going? Do I continue to pay the management co? What do I do?

jillianleab · Feb 19, 2008, 04:27 PM

Sorry to heat of your situation, it's becoming pretty commonplace now, unfortunately.

Your rent is going to the management company, who is taking their cut and sending the rest to the owner of the house. He should be using this money to pay the rent. Apparently, he's not! It's very nice of the management company to reduce your rent; my advice is to take that saved money and put it into an account so you can have a deposit for your next place. When the place you are in now gets foreclosed on, you will be forced out. Sad, but that's the way it works.

Now, it's up to you on if you should continue paying. On the one hand, you're losing your place anyway, but on the other hand, if you don't pay, your landlord can still evict you for non-payment. So if you don't know when the home will actually be foreclosed on, you probably should continue paying.

Start looking for a new place, you're going to need one!

Cvillecpm · Feb 19, 2008, 07:42 PM

You are living in the property * WHY would the mgmt co reduce your rent? What inconvenience have you incurred? Mgmt co may or may not be telling you the truth and your NOT paying your rent will get you evicted.

Fr_Chuck · Feb 19, 2008, 08:20 PM

I do hope you have it in writing, for the reduced rent, since actually the property management company does not normally the authority to reduce your rent.

But your real issue is that the fact it is in foreclosure does not effect your contract ( lease or rental agreement) since the owner can always reclaim and get it out of foreclosure anytime up and till the day it sells.
And you can be evicted if you don't pay your rent.

And honestly it is not your business what the management company does with the money, it is only your legal obligation to pay them, *** but they will deposit it into their account and owe it to the landlord. If you don't pay the management company will merely evict you.

But you need to see about getting a release from any lease you are in, and start lookng for a new place to rent.