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  1. #1
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    Default My landlord went into foreclosure

    OMG Where do i even START!?

    Ok. So I had my security stolen when I moved out of my last apartment. Then Doug got ripped off for $400. And let's not go there with Sungal's dramas with Ginger. But anyway, I accidently opened mail today in amongst my own and it was to my landladys husband. And she went into foreclosure in October. :sick:

    Now what? I googled and Obama passed this law in May 2009 to apparently protect tenants. So does this mean I can at least stay until the end of the lease? I'm so upset!

    http://www.nolo.com/legal-encycloped...cle-30064.html

    Any advice guys?

  2. #2
    Member sungal's Avatar
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    Horrible news! What everyone needs to start doing is asking the landlord about mortgage statements. They're always asking tenants for refrences, proof of employment, bank statements.

    If you have a nice apartment without problems- no bugs or rodents, working heat, quiet neighbors, in a decent area then chances are your landlord is the problem.

  3. #3
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    Quote Originally Posted by Jess
    OMG Where do i even START!?

    Ok. So I had my security stolen when I moved out of my last apartment. Then Doug got ripped off for $400. And let's not go there with Sungal's dramas with Ginger. But anyway, I accidently opened mail today in amongst my own and it was to my landladys husband. And she went into foreclosure in October. :sick:

    Now what? I googled and Obama passed this law in May 2009 to apparently protect tenants. So does this mean I can at least stay until the end of the lease? I'm so upset!

    http://www.nolo.com/legal-encycloped...cle-30064.html

    Any advice guys?
    the same thing happened to me in chicago, but the foreclosure process is a long process and the illinois law was once they finally sell the house at the auction the tenant still has 90 days to move out!

  4. #4
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    I heard that if you are a tenant in a place that went into foreclosure, you don't even have to pay rent until they come and kick you out which can take a while.

    This is just something I heard from others on Facebook so I don't know but I wouldn't be surprised if that's the case.

  5. #5
    rk
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    Quote Originally Posted by Carlos Miller
    I heard that if you are a tenant in a place that went into foreclosure, you don't even have to pay rent until they come and kick you out which can take a while.

    This is just something I heard from others on Facebook so I don't know but I wouldn't be surprised if that's the case.
    That may be the case after the property has been foreclosed on, i.e. the bank owns it legally, not at the stage where foreclosure is in process. There's usually a gap of several months from one to the other.

  6. #6
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    Default

    So do I still pay my rent to my landlady? I mean, she's clearly not paying her mortgage. I want to stay to the end of my lease which is another 7 months so should I continue as normal? I've learned from experience to not pay the last month as you never get your security back in Miami.

    I love where I live and don't want to move :-/ she said she is in talks with the bank...but really, if it's at this stage do I assume the bank is going to take it back?

    This REALLY SUCKS. I can see why people give up on living here sometimes. :down:

  7. #7
    Member Maria de los Angeles's Avatar
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    Jess, I am so sorry to hear that!

    I agree with RK, I still think you may be legally bound to the lease. You haven't gotten a notice from the new owner, which would be the bank if indeed the foreclosure does go through, and you wouldn't have even known the property was in foreclosure if you hadn't opened that letter by accident. I'm not sure that her not paying mortgage equals you not paying rent (at least legally).

    I'm not sure if this is how it works, but maybe the bank will put the property up for sale and you can just stay until they sell it. And then maybe the new owner will just continue renting it to you. Does foreclosed mean the tenant must move out? I've never experienced this.

    I do know that an owner can sell an apartment with a tenant living in it and then you just sign a new lease with the new owner. Maybe it's the same with foreclosures. Not sure.

  8. #8
    Member sungal's Avatar
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    As long as you pay your rent, you can stay until the end of your lease. If it becomes a forclosure sale and someone buys it, you still can stay until the end of your lease unless the buyer plans to occupy it. That's good news kind of.

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    Thanks Maria, I feel better for reading your reply.

    Can you believe this has happened twice to me in 6 months?

    I will continue to pay the rent I guess...I am more worried about being asked to move out, I really want to stay where I am. I had already decided to sign another year lease :-/

  10. #10
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    Quote Originally Posted by sungal
    As long as you pay your rent, you can stay until the end of your lease. If it becomes a forclosure sale and someone buys it, you still can stay until the end of your lease unless the buyer plans to occupy it. That's good news kind of.
    So, if it does get sold to the bank, or someone else, they will tell me? After all, I found out about the foreclosure by accident. She hasn't told me. And it happened in October.

  11. #11
    Travel Advisor fredgarvin's Avatar
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    uggggh! Sorry you have to deal with this Jess!

  12. #12
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    Quote Originally Posted by Jess
    Quote Originally Posted by sungal
    As long as you pay your rent, you can stay until the end of your lease. If it becomes a forclosure sale and someone buys it, you still can stay until the end of your lease unless the buyer plans to occupy it. That's good news kind of.
    So, if it does get sold to the bank, or someone else, they will tell me? After all, I found out about the foreclosure by accident. She hasn't told me. And it happened in October.

    Ask to be kept up to date. If it does go on the market, I don't know, maybe people will come by to see it or you'll see it advertised. I'd call the landlord and ask them to explain the situation in more detail.

  13. #13
    Travel Advisor fredgarvin's Avatar
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    i'm pretty sure that a lease is a lease, even if a property goes into foreclosure. i saw a number of properties that were for sale that were rented until "xx/yy/20xx. some of these were bank owned foreclosed properties. in all those cases, the lease could not be broken by the sale---in some of those cases it made the purchase a very bad deal in that the rent would not cover the mortgage, taxes, assessments, etc-but nevertheless the lease could not be broken

  14. #14
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    Quote Originally Posted by fredgarvin
    i'm pretty sure that a lease is a lease, even if a property goes into foreclosure. i saw a number of properties that were for sale that were rented until "xx/yy/20xx. some of these were bank owned foreclosed properties. in all those cases, the lease could not be broken by the sale---in some of those cases it made the purchase a very bad deal in that the rent would not cover the mortgage, taxes, assessments, etc-but nevertheless the lease could not be broken
    Fred! That's so helpful! Thank you!

    So if the bank owns it, I just hope they will write to me and tell me. Maybe if its really cheap I could look into buying it somehow.

  15. #15
    Travel Advisor fredgarvin's Avatar
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    Jess, I found that foreclosures were rarely good deals. For more info try this link:

    http://www.zilbert.com/foreclosures/foreclosures.asp

    Nevertheless, this is a special time in the real estate business. It took me 9 months to find what I thought was a reasonable deal, but there are good deals out there. If there is any way you could swing it, owning your own place has many advantages. There are possibilities of finding condos priced at what they were going for back in 2003. I'll be glad to share what i've learned.

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    My law advice says: GET TO PACKING! :lol:

  17. #17
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    Quote Originally Posted by Juicy J
    My law advice says: GET TO PACKING! :lol:
    Haha yeah, I know...

  18. #18
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    Quote Originally Posted by fredgarvin
    Jess, I found that foreclosures were rarely good deals. For more info try this link:

    http://www.zilbert.com/foreclosures/foreclosures.asp

    Nevertheless, this is a special time in the real estate business. It took me 9 months to find what I thought was a reasonable deal, but there are good deals out there. If there is any way you could swing it, owning your own place has many advantages. There are possibilities of finding condos priced at what they were going for back in 2003. I'll be glad to share what i've learned.
    I'll pick your brain at the meet up. Why are foreclosures rarely good deals though?

  19. #19
    Travel Advisor fredgarvin's Avatar
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    Jess, my real estate agent (a great guy who's name I'd be happy to give you) kind of explained it this way: When a property goes through formal foreclosure, there are substantial costs involves. Including legal and "bookeeping" costs. A bank must recoup as much of these costs as possible. The initial loan amount may have been inflated due to increased valuations but still must be recovered. That is why foreclosures may not be good deals.

    Short sales are a different story:

    http://www.zilbert.com/short_sales/short_sales.asp

    Since short sales allow lenders to 'write a loan off their books,' without the costs and accounting of a foreclosure, good deals can be had.

    The problem is, the lender has to agree with the sale, it could take months or never happen. I went through one for 4 months and it wound up never happening.

    ps-the links are for general information--- there are many more reasonably priced properties available. Zilbert (who specializes in higher end properties), just has a super website with much good information!

  20. #20
    rk
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    Good points, but you can't say as a blanket statement that one type of sale is any better than some other. Each property, even in the same building, is unique, and you must consider every factor that is important to you personally, which may be different than what is important to an expert (speaking as a non-expert, of course!)

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