Renting A Home That Is In Foreclosure
A new US law has been passed to prevent people who are leasing a property from being kicked out of a home that has been foreclosed on. The new law states the existing property lease must remain enforced until it expires and up to 90 days there after. Until the law was passed the tenants leasing the homes in foreclosure were forced to move out once the bank/lender took the property back from the landlord/property owner. A lot of people were being removed unknowingly and without doing anything wrong, even while paying their rent in full.
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I couldn’t imagine renting a home and being kicked out because my landlord didn’t pay their mortgage especially if I’m paying my rent. Thank goodness they are trying to do something about this issue.
I am trying to find out what I can do ,I leased a house ,to own,put down a $3000 deposit and first last and security and a pet deposit. Then after less then a year, I get papers served telling me that the landlord has not paid since August of that year and the home is being foreclosed on, I continue to pay rent but what is going to happen to us. What if the landlord does not give us our monies back so we can move into another home? Please help me someones,have a blessed day,Sheila
Sheila,
The best advice would be to speak to an attorney. The bank should have to uphold the lease until expires but I’m not sure what would happen with the deposit. Again, you should call an attorney especially since you have a large deposit. I hope everything works out OK. Best of luck.
Sincerely,
Kyle Hogan
I have been leasing a home for over a year now and just renewed the lease for an additional year…a friend of the homeowners has informed me that the home is going into foreclosure, 1. how can i find out if this home is foreclosed, 2. if it is foreclosed, i realize that i have a right to finish of the term of the lease, but am i required to continue to pay the landlord rent if they are not paying their mortgage? i have done extensive research on the internet, and have not been able to find any information that can help me….if any has any valid information plese share that information and state your source of knowlege.
Hi Kiki,
There was a bill passed in May 2009 called “Protecting Tenants in Foreclosure”. If you do a search in Google you should see plenty of information.
You will need to check you county’s public records website to find out if the home is in foreclosure.
I wouldn’t recommend that you stop paying the rent until you consult an attorney. The lease is a legal agreement between you and the landlord. He may be able to evict you if you are not current on your rent. Again, consult an attorney.