[Janaseneca53]

I currently live in an apartment building and recently received a "notice of sherriff's sale" for the property where I live which is located in northwest Indiana. The property is due to go in "public auction by sherriff department in June". I am not familiar with real estate law so I am confused about what to do. I am getting mixed messages from the person who's relative owns the property. I got some information from resources on the internet but it still is not clear what this means for me as a tenent. I am presently not on a lease but on a month to month basis. I understand this is a foreclosure process but the landlord's brother (who collects the rent each month) is determined to continue collecting. Do I still continue to give him my rent as I have in the past or should I look for another apartment due to the situation with the property. I discussed the situation with him, he says it is a procedure for them to sell the building. But the information I gathered says otherwise. Sounds like he is trying to cover their tracks. I only met his sister once since I moved in a year ago. Do they still have the right to collect the rent since I have not received any notice from bank or realitor saying otherwise? Can u please give me some sort of direction to follow? Thanks.

[smoothy]

What state and city would this be in... laws and rights vary


Sheriffs sale isn't a foreclosure. That is usually a tax sale for unpaid taxes. Banks usually hold their own auctions for foreclosed properties.

If you are living there... and you have not received any directives from a bank or the sheriffs office you have to pay your rent to who you have been.

Whomever buys it isn't obligated to continue a month to month agreement (but they can give you the legal 30 day notice to vacate after the sale) though they would have to honor a signed lease until its expiration.

Because of the uncertainty I would give your 30 days notice in writing and start looking for another place. Or you can wait and see what happens then if you really like where you are, just be aware new owners may have other plans. But either way you aren't entitled to live where you are for free. You will be paying rent to someone.

[LisaB4657]

It sounds like the property is going through a foreclosure. It can be a result of failure to pay the mortgage loan, back taxes or any other lien which may be on the property. In any case, you are required to continue to pay rent to the landlord or the landlord's representative until you have received written notice that a sale has actually taken place and there is a new owner of the property.

If this is a foreclosure due to failure to pay the mortgage loan then you will have the right to stay on the property for 90 days after the sale occurs. If this is a foreclosure for reasons other than failure to pay the mortgage then you may have only 30 days after the sale occurs to remain on the property.

There is always the possibility that the landlord will pay off the outstanding amounts that are the cause of the foreclosure process. But that is not likely, and since you are a month to month tenant there is no reason that a new owner would be required to continue your tenancy. I strongly recommend that you start looking for a new place to live as soon as possible.

[LisaB4657]

Sheriffs sale isn't a foreclosure. That is usually a tax sale for unpaid taxes. Banks usually hold their own auctions for foreclosed properties.

Smoothy, a sheriff's sale is a foreclosure. Any sale of the property due to failure to pay a lien, whether it's a mortgage loan, taxes, judgment, etc. is a foreclosure and calls for a judicial sale, which in most jurisdictions is conducted by the sheriff.

[AK lawyer]

... Any sale of the property due to failure to pay a lien, whether it's a mortgage loan, taxes, judgment, etc. is a foreclosure and calls for a judicial sale ...

Not quite true. In some places a non-judicial sale (usually by the attorney for the secured party), under a deed of trust is also possible.