Need Legal advice

.Brandi. · #1 January 6th, 2011, 04:51 PM

Chris and I have been renting the townhouse we're living in for 4 years. Yesterday I got served with our landlords foreclosure deferment papers. They have until the 25th of this month to contact a deferment counselor. They won't qualify because they don't fit the guidelines. My dad told me to stop paying rent. So do I have to pay the bank now or can we save the money that would be rent to get into a more suitable place?

greeneyes · #2 January 6th, 2011, 05:07 PM

My understanding is that you still have to continue paying rent to your landlord or you could be evicted. Make sure you are paying via check or money order so you have proof you paid and contact your state's legal aid office for further advice. Legal aid is free and they deal with thousands of housing issues and will be your best resource for what to do.

Bre*n*Will=Reid · #3 January 6th, 2011, 08:44 PM

I have no idea, but wow, that is horrible!! Our last condo that we rented was privately owned and since I was in the real estate business, I would check the title records ever so often just to make sure he wasn't going into default.

Are you going to be able to find another place that you will be happy with? Moving is stressful, ugh.

Mars · #4 January 7th, 2011, 04:27 AM

That is horrible but I do not think it is wise to stop paying rent. You may want to ask for a receipt of the rent you pay (from now on) if you don't currently get one or you could call the bank or bank's lawyers and ask them about it.

.Brandi. · #5 January 7th, 2011, 06:03 AM

We're not on a lease and haven't been for a year. We asked for one and never got it. I am not going give these people anymore money! They aren't paying their mortgage with it so I am not going to continue to pad their pockets! My grandfather worked in the mortgage company for 40 years and told us not to pay the landlord. Even if I was on a lease, I wouldn't pay them because it would be a breech of contract. They weren't even going to tell us that they are losing the property. These people can kiss my behind! We have responded to a ton of craigslist postings. Plus we have a friend who owns rental properties. His are all rented but he knows some people who also own rental properties so he's checking with them too. This sucks! Packing and moving is stressful enough when it's planned but in a case like this it is beyond stressful! Ugh!

greeneyes · #6 January 7th, 2011, 07:26 AM

Brandi, you most likely need to continue paying rent. The vast majority of states recognize that if you do not renew your lease for another year that you are then on a month-to-month lease. Even though you don't have anything signed, both parties are still bound by the original contract just on a month-to-month term.

So while this unfortunately means you still need to pay rent, the good news is that you can move out at any time with a 30 day notice. If you don't pay, you're facing one of two scenarios: 1. If you are able to find another place right away, your landlord can't evict you if you're already out but they can still sue you for damages (unpaid rent) which a judge will grant because your landlord's bank issues have no bearing on your current living situation. This means you will have a judgment against you and if you still don't pay then your case can be turned over to collections. 2. If you aren't able to move right away, your landlord can not only sue you as stated above but can also file papers to evict you.

Different states have different nuances to the law so before you do anything, I highly, highly recommend you call your local legal aid office. I know grandpa's advice is what you wanted to hear but I think you should contact a more qualified source before you make any decisions that could have potentially serious long term effects.

Mod-LadyCoconut · #7 January 7th, 2011, 07:59 AM

There's a new federal law passed that if you are current on your rent and the owner for the preoperty goes into foreclosure, you are allowed to stay in the property for the remainder of your lease plus an additional 90 days. If you are renting without a lease, you have 90 days before being evicted/told to move.

I really suggest contacting that particular bank that will own the property. They would likely prefer to make SOME kind of income from the property - so you can likely get away with paying WAY less than your current rent an staying in it, under the condition that you'll be willing to 'show' the place to any prospective buyers. The banks would generally rather have a tenant in the house keeping up with it so its not vacant and possibly destroyed and also making some kind of $ on it.

New law protects renters after landlord foreclosure | www.clarkhoward.com

Is Your Rental Foreclosing? | www.clarkhoward.com

Frozendesire · #8 January 7th, 2011, 10:15 AM

Oh wow, so sorry to hear your in such a horrible situation.

I would suggest paying your rent. I would keep everything very tip top just so that nothing comes back to you. Keep paying rent, look for a new place and leave the place as good as you can... this way nothing falls back on you. Keep reciepts, use cheques to pay, etc etc. Keep everything in order.