Foreclosure in Montana>Question Details

Peacelovencu…, Renter in Montana

I am currently renting from a landlord has a usda loan and the house is being foreclosed on. Do i still pay him or the loan holder?

Asked by Peacelovencupcakes, Montana Wed Oct 19, 2011

i am wondering if there is a possibility that we take over the loan payment? we have been here for 4 months and have paid rent every month and the landlord told us he would reduce it because the house has no heater and its going into winter. Also with the house going into foreclosure would i pay the loan holder or the landlord?

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Ruth & Perry Mistry’s answer
Hi Peacelovencu..

Till the home has been foreclosed on you pay the landlord.
Regret to hear of your problems.

The bank will be happy to rent to you after foreclosure.

Good luck.
Perry
http://www.trulia.com/blog/perry_mistry/2011/10/vacant_homes…
1 vote Thank Flag Link Wed Oct 19, 2011
Hello Peacelovencupcakes,
To address your question on why the home is being foreclosed on even though you have been making timely rent payments is simple: the landlord has not been applying your rent payments to pay his mortgage with them. Maybe he's experiencing some type of financial hardship.

I suggest that you get your landlord's permission to install a heater at your expense since you say that you are able to do so. At least, that way you will be warm this winter and also have some savings from your monthly rental payments reduced.

Also, I suggest that you have a discussion with your landlord regarding your desire to purchase the property but first: Do you know if you are qualified to purchase? Contact a mortgage lender or Broker to see how much you would qualify for financing if you plan on doing so. This way you can inform your landlord that you are a qualified buyer. Then perhaps he can contact his lender and determine if the bank may be willing to work with you.

Hope this helps and best of luck to you!

Laura Feghali
Prudential Connecticut Realty
1 vote Thank Flag Link Wed Oct 19, 2011
I suggest you ask the landlord to apply for a loan modification on the USDA loan -- if that's possible. Otherwise, contact a local realtor to list the home as a short sale, and then you can write an offer. If your offer is accepted, you will be the new owner. I am not sure about the heating issue, as far as whether the home qualifies for financing? Another alternative, is to figure out a way to make the loan current, and then take over the actual payments. Good luck!
1 vote Thank Flag Link Wed Oct 19, 2011
Regardless of a pending foreclosure the lanlord is responsible to maintain the heating system in the home.
Come winter you will have a valid excuse not to pay rent. I would contact an attorney for representation and see what he says your options are. I bet he says stop paying rent or deduct the cost of the heating sytem from your rent!
0 votes Thank Flag Link Wed Oct 19, 2011
When we rented the house we were told the heater was waiting to be put in. We were not aware it was being foreclosed on and have been paying $1175 a month so im unsure why the foreclosure. The landlord has said he will reduce my rent until were kicked out but wont put a heater in still even after i said id supply the heater. Im a disabled mother of two so i dont have the resources to move right out. i do know the loan is a usda loan so i should get ahold of them?
0 votes Thank Flag Link Wed Oct 19, 2011
Hello Peacelovencupcakes,
Your rental agreement is with your landlord not his lender so you must continue to pay your rent to your landlord. Your lease should state any consequences for non-payment which could include late fees and eventually eviction if you do not pay.

I would advise you not to consider purchasing the home as it has no heat. Many lenders would not give you the financing without heat in the home. I doubt that the lender would allow you to take over payments on the home anyway.

If you wish to purchase a home then I suggest that you look for something else where your way of life will be comfortable and not cold.

Good luck to you!

Laura Feghali
Prudential Connecticut Realty
0 votes Thank Flag Link Wed Oct 19, 2011
You cannot take over the mortgage. The rent would go to the homeowner, but why? IMHO.

Contact the bank who holds the note and see if you can work out a cheaper rent deal to stay in the home so the bank doesn't have an empty home that is subject to vandalism.

Just one question - why in the world would you rent a house with no heater in Montana?!?!?!?!?!?
0 votes Thank Flag Link Wed Oct 19, 2011
As a tenant you may pay the rent.If you have lease you may try to stay.You will get notice to move out.
0 votes Thank Flag Link Wed Oct 19, 2011
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