Condo we are renting got foreclosed!

[kkrxo 2]

Last week, we found out that our condo has been foreclosed for about 2 months. We rented from the guy that owned this condo. We tried to contact him but he isn't returning our calls or voicemails. We found out the condo has been foreclosed from our neighbor who got a letter in the mail from the bank (that was TO the landlord, but he opened it anyway). The neighbor said the landlord came clean w/ him about the foreclosure & told him he doesn't care if he stays there until the bank notifies him to leave..

We have been paying rent to our landlord even AFTER the condo had been foreclosed but we pay just by depositing the money in his account monthly.. (we've been doing this for 2 years) we dont have a written lease/agreement so I know we probably won't be able to get any of that money back since we won't be able to really prove that we made the payments. We have receipts from his bank but I don't know if that's enough. We also won't be getting our deposit back I guess since there's no record of that...

But we're not really worried about what we've paid the past 2 months so I'm just wondering, could we just stay at this condo until the bank notifies us we have to leave or is that illegal? The other 6 tenants that were renting from the same landlord (all condos got foreclosed) say that they are all staying in their condos until someone tells them to leave but I don't want to get in trouble for it because we will be living here for free and that just doesn't seem right.

When the bank finds out we are still here, will they notify us and give us 30 days to leave?? And will we end up OWING the bank if we decide to stay here until the bank evicts us? I just don't want anything to become "public record" or anything be on my husband's credit (even though the bank doesn't have his social security number or any information on him) because he has excellent credit.

Someone please help!!

[NigeriaorBust 4,087]

The bank has an agreement with the landlord about the loan not you. If I were you I would stop paying the landlord as he doesn't want to bring the place out of foreclosure. If you really like the place contact the bank after they tell you it is in foreclosure and see about buying it at the current market price ( not what idiot landlord owed )

[LADYDARE 28]

The bank has an agreement with the landlord about the loan not you. If I were you I would stop paying the landlord as he doesn't want to bring the place out of foreclosure. If you really like the place contact the bank after they tell you it is in foreclosure and see about buying it at the current market price ( not what idiot landlord owed )

[payxibka 10,045]

Foreclosed or in foreclosure? big difference....

Edited November 16, 2010 by payxibka

[Deputy Purple 1,294]

You should send a certified letter to the landlord informing of what you believe you know and stating that you will not make any further payments until he comes over and personally tells you what's going on. I assume the landlord has a security deposit from you, without a lease how can your prove that?

If the property is foreclosed on then either the bank or the new owner will contact you. At the very least you will have 30 days notice to move.

[spookyturtle 9,466]

I don't know what your state laws are regarding security deposits, but where I am only the landlord has access to the money, not the tenant. The landlord has it in an escrow account and the interest is reported on the tenants ss#, but the tenant has no access to the account. If that's the case where you are, your security deposit is probably gone. If you really want to be on the up and up, deposit your rent in an escrow account yourself so you can prove to the bank or whoever that you paid the rent in good faith until you were given further instructions. This protects you.

[Krikit 1,164]

Google the address to find the foreclosure and auction and sale notices so you will know for sure. You will be given 90 days notice even if you don't have a lease, courtesy of the Protecting Tenants at Foreclosure Act. Or, if the bank/new owner wants you out sooner, they will offer you "Cash For Keys"..... usually anywhere from ~$500 to a max of $2k... depending on the matrix. Alternatively, the new owners may be interested in keeping you as tenants so you may end up with a new lease. The former landlord no longer owns the property so hang onto your rent payment in case you need to hand it over to the bank/new owners. Here are a couple of informative links for you:

The Foreclosure Process

Your Landlord Got Foreclosed. Do You Have To Go?

Moving from Off Topic to Life in America forum.

Good luck!

[kkrxo 2]

The bank has an agreement with the landlord about the loan not you. If I were you I would stop paying the landlord as he doesn't want to bring the place out of foreclosure. If you really like the place contact the bank after they tell you it is in foreclosure and see about buying it at the current market price ( not what idiot landlord owed )

From what I understood (from our neighbor) the condos have already been foreclosed. I'm going to talk to him again today to see if he still has the letter that he got from the bank so I can read it for myself. He told me it said something about something happening in February but I'm not sure what... and he got the letter like I said about 2 months ago

[kkrxo 2]

Thank you guys for all of that information... ya'll have been so much help!!! I never knew about the Protecting Tenants at Foreclosure Act and now that I've read about it, I feel so much better!!!

"This legislation, which also covers Section 8 renters, mandates that when a home goes into foreclosure, tenants who have a full lease can continue to occupy the home until the end of the lease period. Those with a month-to-month lease or no lease at all have to be given at least 90 days notice to move. The only way that a person with a full lease can have their lease terminated is if the new owners intend to move in and occupy the home as their primary residence. In that instance the 90 day notice would apply.

Read more at Suite101: Tenant Rights When a Home is in Foreclosure: What Renters Need to Know to Protect Themselves http://www.suite101.com/content/tenant-rights-when-a-home-is-in-foreclosure-a170555#ixzz15TQyo9iS"Glad to know I'll still have that 90 days from whenever the bank notifies us to leave!!!

[luckytxn 2,264]

Either save the rent in savings until the new property owners come asking for it or at the least show proof that you paid the old landlord or the new land owners may come asking for the back rent.

[Deputy Purple 1,294]

Actually any new owner (be it bank or private party) has no legal claim to rent from the renters until they make contact and either notify them they must move (complying with all local, state & federal laws) or offer up a lease thereby creating a contract between the two parties.

Courts can't enforce a contract between two parties where there is no contract.

[sea-monkey 13]

You just can't stop paying. Its between him and the bank, not you. When the owner tells you to leave, then you leave. Whether the owners will be the bank or the guy himself.

What if he was trying to work things out with the bank and now his tenants refuses to pay? If you don't want to stay then move out. Or exchange a rent free month or two in exchange for deposit.

[Deputy Purple 1,294]

I never said just stop paying did I? I said send a certified letter first explaining what they believe they know and indicating that no more payments will be made to the original landlord until they have met face to face. The op indicated that the landlord is not responding to their calls.

And if the original landlord has lost possession of the property then the new owner has to abide by all local, state & federal laws. They can't just throw the tenants out but they also don't have a contract with the current tenants especially in the case of a month-to-month residency.

[tom&tanya 48]

Hang on a second here... DO NOT stop paying your rent. It is a sure fire way to get evicted and have a real nice blemish on your credit report.

I am a Real Estate broker in Florida and I have seen this scenario more than a few times in the last few years. What state do you live in because the rules on these things vary from state to state.

[Rob and Jill 82]

I think a culmination of the answers above are the best answer. Send the landlord a letter stating you have been trying to contact him and have received no response. Tell him you saw a letter stating the building is up for foreclosure and if he doesn't answer you in 10 days you will put the money in an account until you hear from him. He'll either answer you when he gets the letter or call you when he doesn't get his money.

Even better if you want to be sneaky...call and tell him something is broken and it needs to be repaired. See if he calls you back then. It's HIS job to repair issues. That would also be a general indicator for your sake as to what is going on with your current landlord.