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ggh · Nov 3, 2008, 10:33 AM

My husband and I recently restructered our loan during foreclosure. Our renters found out about her process that we were going through and now they are holding their rent until we give them our mortgage information. We feel that this is none of their business! We are first time landlords. What do we do next?

rockinmommy · Nov 3, 2008, 11:23 AM

Well (unless you're in CA) they are legally obligated to pay the rent and honor the lease as long as you own the property. I guess about all you can do is remind them of this (in writing) and demand they pay or evict them for non-payment.

OR, if you have something from the mortgage company stating that the house is no longer in foreclosure why not show them a copy of it. You can black out any account numbers or dollar amounts, etc. But if that really is the only reason they're not paying and just need some peace of mind, why not give it to them?

I'm a landlord, so I can certainly appreciate your position. But I also think that if I was a rent-paying tenant and found out that the place I havd been paying rent on was inforeclosure and I was in jeopardy of losing my home - even though I'd been upholding my agreement - I'd be really tempted to quit paying rent, too. If you can just offer them reassurance, in the form of proof from your mortgage company, and that will get everything back on track why not do it?

Now, if they don't have the money because they weren't planning on paying because of the foreclosure and spent the money on something else, etc... then you might as well get the eviction under way.

ggh · Nov 3, 2008, 11:37 AM

Thank you, for your help. I think, that's what we have decided to do. The renter has just been so mean... It does not help matters that she is a lawyer! My husband and I have sank every dime we have into saving this home. We have apologized profusely for the situation and assured them things would work out. This lawyer has also called our mortgage company and harassed them for information and she has also called my husband's boss and let him know all about our financial situation. We have only considered doing the "right thing". Which is fixing our debt. We have just had some unforeseen circumstances. I just want to get rid of this home now... we were not meant to be landlords!

ScottGem · Nov 3, 2008, 11:47 AM

I suspect they think that being a lawyer can intimidate you. I would IMMEDIATELY serve them with a Pay or Vacate notice. They have NO legal grounds for withholding the rent. In fact, its just the oppoiste since, their withholding the rent can cause you to renege on your restructuring. In which case, if you lose the home, you could sue them.

I would also get an letter from your lender stating that the mortgage has been restrucutured and is no longer in foreclosure. Nothing more than that.

When you server them with the Pay or Vacate notice, inform them that you have requested such a letter and will provide a copy as soon as you receive it.

You might also tell them, that due to their harassment, you will not be renewing their lease when it expires. And that you are willing to let them out of the lease with 30 days notice.

ggh · Nov 9, 2008, 07:09 PM

We were able to collect their rent.

We also listed the house for sale through a real estate agent. We need them to stay in the house until the house is sold. They are furious now and are still emailing us threats of calling the police if the home is showed.

ScottGem · Nov 9, 2008, 07:13 PM

Originally Posted by ggh

They are furious now and are still emailing us threats of calling the police if the home is showed.

Tell them that if they don't stop harassing you, you will call the police on them. They have no right to stop a sale. If they have a lease the buyer will need to honor it. If they don't have a lease or are month to month, then they can move with proper notice.

Fr_Chuck · Nov 9, 2008, 07:23 PM

No you need them out of the house, evict them, NOW...

They will never help you sell the house.

Also you may want to get a restraining order to make them stop calling his boss, mortgage company and so on.

Welcome to being a landlord, while there must be some good renters, I have had holes in all the walls, rugs ripped to pieces, all of the stove, frig stolen and more.

Also if you are going to be a landlord you need to know what you can and ca't do upfront.

An empty house will often sell better than a rental where the peoople living there are leavig it a mess or will talk bad about house if people are looking.