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| Posted by: felicia from California on October 3, 2009, 7:05 pm |
Comment:
House in Pre/Foreclosure: Do Not Pay Rent
Do not pay rent if your house is in foreclosure or preforeclosure.
We looked online, researching for hours, trying to find this info. But it is next to impossible to find the facts. This is a gray area, some pay rent, some don't. Owners & property agents want your money so they want you to pay the rent. But after several Real Estate Attorney and Bankruptcy Attorney free & paid consultations. We learned we didn't have to pay rent, unless we wanted to. There is no law about having to pay rent, when the owner defaults on the Lease Agreement Contract.
Some owners may say they are going to evict you to scare you into paying rent. But it will cost them $1,000 and a month to get you out. If you receive an eviction, immediately contact any real estate attorney can help you stop the eviction or delay it up to 6 months or until the house is in foreclosure, then the owner has no control over the house at all. You can stay in a uncontested house in foreclosure, listed as a foreclosure on county courthouse public records online, for up to 90 days. Then you can file a Motion To Delay with the court, be real nice to the judge, judge may extend for 2-3 months if you need a few months to save money to move. If the owner is contesting the foreclosure, then you may get to stay from 4months to 12 months rent free.
And a mortgage agent said he knows many renters that are living in homes not paying rent for almost 2 years. The real estate attorneys also said they had clients and consultations with many renters who have not paid rent from 6 months to almost 2 years.
If the owner stops making mortgage payments and is in preforeclosure , many dishonest owners will not tell you. You can call your local Courthouse and they will give you the website link to check the public records on your computer to see if the house is already in foreclosure. An owner has defaulted on the lease if the owner is not making mortgage payments on the house, therefore you do not owe rent. You can watch the courthouse public records online, talk to a real estate attorney or read info about this online. The owner is no longer in charge of the house, the house is in limbo until the foreclosure proceeding is completed.
In contract law, it is assumed that when you sign a lease, the owner will make timely mortgage payments. The owner must make mortgage payments otherwise the lease is in default by the owner, and the renter no longer owes rent. There isn't a free ride for some loser owner who refuses to make the mortgage payments. If the owner is not paying, then the renter does not have to pay either. You can live in the house for 2-3 months once the house is started in the foreclosure proceeding. There is a new law in May 2009, allowing renters to stay in the house for up to 90 days after the foreclosure, or you can ask for CASH FOR KEYs from the bank, therefore the bank pays you $2,500 to move out and to leave the house in good shape. Leave the bathrooms and kitchen intact, leave the plumbing and electric in good shape, and do not damage the house.
When you rent another house, add a Foreclosure clause to your lease,
"That the Owner agrees to not collect any rent for any months the owner does not pay the mortgage. When the owner catches up with the mortgage payments, only at that time will you resume paying current rent. During the months a mortgage payment was not made, no rent will ever be due".
because,
Due to the stress of living in a house inwhich the owner is defaulting on the lease, and leaving you at risk of having to get together money for a move and new deposits on another house.
If you rent from a property agent, they are required to give you the owners name before you sign a lease, so you can personally check to see if the house is in foreclosure.
Many owners, property agents and real estate agents are renting houses in foreclosure or in preforeclosure and stealing the deposits from the renters, knowing they are renting a house in foreclosure or preforeclosure. That is stealing. So, renters must protect yourself from these thieves . You have the right to see a current credit report of the owner, you have the right to ask for the Bank Lenders name and mortgage number of the house you are leasing, so you can call and verify that the mortgage payments are current before signing any lease. If the owner or agent refuses to give you the lenders name and their account number, that is a flag that the house or condo is probably in preforeclosure so they don't want you to check, because they want to steal your money.
We know this, because we went thru this. Live and Learn. Learning all we have thru a real estate attorney has cost us a little money, but we are way ahead because we have lived here for 10 months rent free, and will be here another 3-5 months rent free before the foreclosure is completed. So, it was worth calling around to a few real estate attorneys, many will give a free 10 minute consultation, or pay them $50 for 20 minutes consultation.
This is just free legal tips to help out others in our same situation. We found it was really hard to find good info online, so we had to call real estate attorneys to get the real facts. Many of which we posted here for you, for free, even though it cost us money to learn this. So, please pass this info on to help other renters, to pay us back for helping you.
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Replies to this comment:
Posted By way from Nevada on April 6, 2010, 7:23 pm
LAS VEGAS NV,THANKYOU THANKYOU,,,IAM IN HOME THAT IS GOING TO AUTION ON JUNE 14TH 2010..I CALLED PROPERTY MANG.CO,TOLD HER,,AND SHE HAD THE THE NERVE TO TELL ME I HAD TO PAY RENT,,ITS CRAZY...THIS IS FRAUD AND PEOPLE ARE GETTING AWAY WITH IT...THANKYOU AGAIN LAS VEGAS NV....
Posted By chrisinte from California on March 2, 2010, 6:58 pm
Thanks for all the great information. My question is what if the home is set for auction? and the property management states the owner is trying to modify his loan? Do I pay rent? how can I get proof owner is modifying loan? I have called bank and guess what they wont speak to me cause I am not listed on loan? Just moved in Sept 2009 door was posted Feb 11th..auction date is March 3rd 2010. I havent paid March rent.
Posted By aryan from California on January 24, 2010, 10:59 am
so i have a new owner this means that i dont have to pay rent for three months,
Posted By brian from Arizona on November 28, 2009, 5:20 pm
i found a letter of trustees sale on the door what do i do..plz advise me
Posted By manny from New York on November 26, 2009, 10:20 pm
guys im in the same situation right now and am looking for the same answers you were looking for. thanks for the insight. very unselfish of you guys, Godd Bless, and best wishes for the future.
Posted By CHRIS from California on November 17, 2009, 3:14 pm
THANK YOU THIS REALLY RELIEVES ALOT OF STRESS AND BOB CAN KISS MY BUTT, MY LANDLORD STOPPED PAYING IN JUNE, CAME BY THE HOUSE SAID HE NEEDED PAID THRU AUGUST, WITH 3 OF HIS BUDDIES, ONLY AFTER THAT I GOT A STRANGE FEELING AND NEVER HEARD FROM HIM AGAIN THE ACCT # I USED TO PAY RENT IS A CLOSED ACCT, AND I HAVE NO PHONE NUMBER.
OH AND WHY SHOULD WE KEEP PAYING RENT IF NOONE IS PAYING WATER TRASH OR UNCLOGGING THE OCCASIONAL SINK
THANK YOU AGAIN FELICIA
Posted By Kim from California on November 8, 2009, 3:45 pm
thank you for the info. It's great to have people who are willing to help out others even though they paid for their info... God Bless
Posted By Bob from California on October 26, 2009, 11:46 am
This is bad advice. California law says the tenant is liable for rent to a landlord until they are no longer owner of the home. Maybe a tenant will luck out and the landlord won't evict them when they stop paying rent, but why risk going to court and getting an eviction on your record?
Posted By Wes from California on October 9, 2009, 10:37 am
Thanks for the info Felicia...I am in a similiar boat...should I pay rent or not?? everyone i know (realtors, prop. owners,friends that were in a similiar situation) says to stop paying...but i read and re-read that one must keep paying rent to the defaulted LL until they are told otherwise by "someone" i.e. the bank, new owner etc. ...my place got the NOD in June and after the 90 days it's still listed as that by the County Clerk. I got a message from my LL today that said that they are in negiotations for a short sale...do i pay or don't I...that is the question...i have a family and want to be ahead of the game...
Posted By Marcine from California on October 4, 2009, 9:05 am
These is great information. I am in the process of renting a home. I used this website to check the address. It appears that the home is in good standings. I will ask the owner for their loan information as well. Thanks alot.
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