Renters Rights in Foreclosure

[princesslele198]

Ok, so its kinda long and confusing, so let me try to shorting it...

Couple weeks ago landlord told us that the house is in foreclosure... our question is, we found out that sense we still have time on the lease, she is violating the lease and therefore the contract is void... I have heard we no longer have to pay rent, because they are not paying... however, I have also heard we do have to still pay rent. But I also heard we can sue her for violating the contract. So is it in our right to avoid suing her and just not pay rent so that we can save money to move, that is the only way we can move.

I've been looking for days, and its hard to find the right information, I find conflicting information all over... Please help, thanks!!!

 

[presutin]

If you have received a summons from the mortgage company or the bank notifying your landlord of the foreclosure, the summons should have the name and phone number of bank or the mortgage company's lawyer responsible for the foreclosure. You should contact that lawyer as soon as possible, identify yourself as a tenant and tell the lawyer you have questions.

1) Ask if the court has appointed a Receiver to collect rent for the property and ask to be contacted by the receiver if one is appointed.
a) If a Receiver has been named, you should get papers instructing you how to pay your rent.
b) If no Receiver has been appointed, you should continue to pay rent to your landlord. It is very important that you get a receipt for any rent payments made.

2) If you have been told no to pay anyone, call your attorney immediately for advice. Good Luck!

 

[jacksgal]

Laws vary by state and I fail to see where you listed yours

 

[Duranie]

Every state is having a problem with foreclosures and renters. You might want to google landlord tenant act in your state, or foreclosure renters rights in your state to see what you can find. There might even be some mediation you guys can go through.

I do not think withholding rent though is legal. Some states may allow for it to be deposited into some sort of escrow account.

All I know is alot of renters are being are being screwed in this housing slump, since many LL's are not informing prospective tenants that a house is in foreclosure. In good faith, the LL should at least waive a month or 2 in rent to allw you to find another place to live and incur moving expenses, again, but not sure what the actual laws says here.