foreclosures that are rented

newhomeseekerNovember 23, 2009

I'm not sure where to post this- I tried Apartment Living and only got one response. I thought those that buy and sell homes might have some more information about this-

My sister lives in a rental house. Her landlord owns several properties. Including the house next door. A week ago, the tenants who live next door showed my sister a foreclosure notice that was delivered to their house. They have only lived there for 3 months and have a year lease.

My sister and BIL have 4 months left on THEIR lease and were planning to sign a year lease at the end. My sister did some searching in court and property records and found out the landlord has not paid any property taxes on her homes for two years- EXCEPT get this, the home that just went into foreclosure, the taxes are paid in full on that one. the landlord hasn't even paid any taxes on her OWN home. My sister did find the foreclosure court case regarding the house next door to her and it just began last week. The tenants say they have no idea how long they have to get out (the landlord hasn't talked to them about it) My sister is concerned that she is next to receive a foreclosure or sheriff sale notice (if the taxes aren't paid) on the house she is renting. She has looked online but can't find anywhere that says how long she would have to vacate the premises after foreclosure has started. Does she have any legal recourse regarding the landlord termninating their lease without notice if the house goes into foreclosure (the landlord would obviously know ahead of time before the notice was served and could have warned her tenants so they could find another suitable place. My sister has a daughter in school and the school district is very small (for elementary) so it would be difficult to find another rental in that area (it was difficult for her to find this one, also that is big enough for her family and that allows a large dog) so she needs plenty of lead time to find another place. However, she can't commit to anything unless she is released from her lease early. The landlord won't return her calls. does anyone know how long (if they are served a foreclosure notice like the neighbor) they have to move out? She lives in Ohio. I have found things online that say 30 days or 60 days (if you've lived there a year or more) from the sale date I believe. If they break their lease and move out early their lease says they have to pay the remaining balance of rent (for the whole contract) unless the landlord finds another tenant (which she'd have no incentive to do as long as she is getting the rent money) They could choose not to pay but she would take them to court. They can't afford to pay her $700 a month plus pay for another rental to live in. But they are afraid a foreclosure or sheriff sale is forthcoming because if the landlord is letting one of her rentals go into foreclosure and not paying property taxes on any of her homes including her OWN- what are the odds that she is paying the mortgage on the home my sister and her husband live in??

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Billl

This year they overhauled the rules for renters and foreclosure. The act is called the "Protecting Tenants at Foreclosure Act of 2009". If you google that, you should find a ton of information.

In general though, leases now have to be honored if the building is going to stay a rental. Month to month leases need to be honored for 90 days. If someone buys it from the bank after foreclosure and wants to live in it, the renters get 90 days to vacate.

However, I would not sign a lease somewhere that was in danger of foreclosure. If the landlord can't pay the mortgage or taxes, they aren't going to pay for regular upkeep. If it gets foreclosed on, the bank isn't going to be a good landlord either. What happens if the furnace breaks or a pipe bursts? If the landlord won't take care of it, your sister could find herself without a livable apartment with zero notice.

Right now, she has 4 months on her lease. A foreclosure is going to take more than a month to move through the system, so when you add 90 days to that, so she should have no problem through the end of the current lease. I'd use that time to start looking for a new place.

    Bookmark   November 23, 2009 at 2:07PM
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