Foreclosure in 60609>Question Details

Papa Coco, Renter in 60609

I rent a small villa for 900$ a month the lanlord going for foreclosure I was notified by the bank so I pay only assessment and maintenance can he put

Asked by Papa Coco, 60609 Tue Jun 7, 2011

What I need to do if I want to stay and buy the house the owner never pay the bank he's going for foreclosure I stop paying him so I pay maintenance and assessment for 9 months the association let me stay so far now he wants me out What do I need to do to stay in the house and buy it

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One interesting thing that is starting to occur more is that Home Owner Associations are taking a more active approach to receiving their monthly assocation dues even when the owner is delinquent. In a number of cases, they are seeking action against the tenant and even looking to take possession of the unit so they can rent it out and collect the income to offset what is due to them if the owner of the unit will not or cannot pay. Therefore as tenant, you would be well-suited to retain legal counsel.

Additionally, that same attorney could verify for you where in the legal process of foreclosure your owner/landlord is. the website is http://www.clerkofthecourt.com but if you don't know legal terminology, it will be a struggle to interpret.

Additionally, whether the landlord/owner is paying the mortgage or not, you have a contractual right to pay him/her. If by chance you have been served any type of legal documents, you may consider going to the next court date and speak w/ the presiding judge to determine what if any actions you can take since you say you are willing to stay and even buy the unit.

Our client, Cherry Picker, works with cash buyers who acquire these kinds of properties and might be a good a good information source although they tend to only work with investors.

Best of luck,
Michael

Michael Hobbs
President
PahRoo Appraisal & Consultancy
0 votes Thank Flag Link Sat Jul 2, 2011
Even if the landlord is in a financial situation until the property is deeded out of his name, he still owns it. He may be able to evict you. I find this situation coming up a lot. When a tenant finds out the owner is having a financial situation, the tenant wants to stop paying rent. This financial situation is between the owner and the bank. You do not want to have a eviction case filed against you. Seek legal counsel on this situation or start looking for another place to move.
0 votes Thank Flag Link Fri Jul 1, 2011
I managed a lot of buildings in your situation and I think I have an idea of what's going on. You were paying rent, but your landlord was not paying assessments to the HOA. This has happened a lot since the market crashed. Landlords collect rent and the HOA goes broke paying scavenger, utilities and cleaning bills.
Can your landlord evict you? Well, he can try, but my experience is that most of these kind of landlords wouldn't have it together enough to go through the process of eviction. If you showed up in court and have evidence that he was collecting rent and not paying assessments, I would bet it would buy you some time. I bet he is just avoiding the whole situation and letting it go into foreclosure.
You are taking a risk by staying there, the owner could go through eviction proceedings and could, possibly, win a judgement against you.
On the other hand, if you keep in contact with the bank, there is a chance you could buy the property at some point. Living there is not going to matter if you don't have decent credit, so if you don't then forget that pipe dream and consider moving out.
I would suggest getting in touch with a community housing association for some advice. This has been happening a lot lately and there are ways of navigating your way through the process with some help.

Good luck


Mike
0 votes Thank Flag Link Wed Jun 8, 2011
You got to pack it up and go. You can watch the market and have an offer ready to go in hand, but you cant make one till it hits the market.

Matt Laricy
Americorp Real Estate
Brokers Associate, e-PRO
mlaricy@americorpre.com
708-250-2696
Web Reference: http://AmericorpRe.com
0 votes Thank Flag Link Wed Jun 8, 2011
Hi there,

This is wrong on so many levels...

Your responsibility is to the owner/landlord, regardless of his financial situation or lack thereof. Period!

The association took your money, that's the bottom line. You owe them nothing & they owe you nothing, you just dished out money in order to pay less, that's the bottom line.

It's true the landlord can evict you at any given moment, lease or no lease, due to lack of payment. You are occupying his property.

As to purchasing the house, the current owner still owns it. All the rights, and responsibilities, of ownership still pertain to him. If HE wants to sell and avoid foreclosure HE, and only HE, can put the house up for sale as a short sale.

Play nice, negotiate with your landlord, work things out and quit paying his bills....it's not going to get you anywhere except broke.

Good luck!
0 votes Thank Flag Link Tue Jun 7, 2011
Hi Papa-

No matter what the owner did or did not do, the best thing for you to do right now is move. I agree with the others, you have no chance to buy this property.
Start looking for another place, and move as soon as you can.
You have almost no rights here, and could find yourself caught between the bank and the owner and find yourself on the street in very short order.
This is just a bad situation and staying will make it worse.
0 votes Thank Flag Link Tue Jun 7, 2011
I would certainly forget about renegotiating the rent lower. You have not paid your rent. You have zero credibility. What would make you think the owner would think you would pay your rent if lower since you have not paid your rent for how many months?

I would not be surprised if this owner would not return you phone calls. Since he has no legal obligation to do so. Just send the rent checks and rebuild your good will with the owner then maybe he would be more amenable to talking to you. However, that is a big if right now.

You have ZERO credibility. And the bank will know that also if you even attempt to submit an offer. Because the owner will have told the bank his tenant has not paid the rent for how many months?

Zero credibility.
0 votes Thank Flag Link Tue Jun 7, 2011
I would approach the owner with the fact that he is in foreclosure and you want to renegotiate the rent to a lower figure. You have no rights if you don't pay the rent, but the owner also knows it is going to be hard to get another tennant with the foreclosure being public record


David Cooper Foreclosure and Bank Owned REO Investor in Las Vegas for 35 Years. For your free list
Call +1-7024997037 or check website
0 votes Thank Flag Link Tue Jun 7, 2011
I agree with all my colleagues here. You need to go. Why don't you save yourself some time and trouble and just go for not paying the rent or else pay up. The landlord really does need to evict you and obtain a judgment for him to collect his back rent. As for buying this place. Forget it. You have terrible credit. Do you think the banks will not see this?

I am not sure that I understand everything and I am not an attorney. However, my sense of ethics says you must go.
0 votes Thank Flag Link Tue Jun 7, 2011
Because you're not paying rent, your landlord can evict you. And he should; you're not paying the rent you agreed to. Your agreement is with him, not the bank.

The association may let you stay, but your landlord has the right to evict. And it's no wonder he wants you out.

What do you need to do to stay? First, not get evicted. Second, you're possibly ruining your own credit by not paying your rent. If the owner reports you to the credit bureaus, that'll lower your credit scores. And if the owner attempts to evict you, that'll be public record.

You outsmarted yourself. You've failed to pay your rent, but have somehow managed to get an agreement from the association. Or have you? The association really doesn't have the right to evict you either. They could place a lien on the property, but there's nothing less that they can do even if you're paying them. So, my guess is that you've been paying the maintenance and assessment (which isn't your responsibility to pay) for the past 9 months while you've been failing to pay the rent (which is your responsibility to pay).

See a lawyer. But I don't think you have any chance of staying in the property if it's foreclosed on . . . much less buying it.
0 votes Thank Flag Link Tue Jun 7, 2011
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
If you have a lease, and you are paying your rent, you should be able to stay until the end of the lease. If you have a month to month lease, the owner can give you 30 days notice for you to move and you are legally required to move.

From your question, it seems that you may have stopped paying your rent. If you are not paying your rent, the owner/landlord has the right to evict you as long as he owns the property. The owner may also be able to sue you in court to get the unpaid rent that you owe him. It doesn't matter if the owner is in foreclosure. What matters is that the owner still owns the property.

It could take 12 months or more before the foreclosure is finalized and the bank becomes the owner. The owner has the right to put in another tenant who will pay rent and the owner can use that rental income to pay the mortgage.

That letter from the bank notified you of the possible foreclosure situation. It did not give you the legal right to stop paying your rent to the owner of the property.

Also, your non payment of rent may have damaged your credit score, so you may not even qualify buy a home or rent your next apartment.

I suggest that you contact an attorney to review the details of your situation.

Laurie Hellmer
McKinley Park Chicago Real Estate
0 votes Thank Flag Link Tue Jun 7, 2011
I am not at all clear as to what you are saying, but a few things to note.........
1. If you have a lease you only need to pay the rent in the lease-nothing else!!!!!!!!!!!!!!!!!!!
2. If you are on a month to month lease, same as 1., but the current owner can start to evict you be giving you 30 days written notice to leave. IF the owner never infomed you in writing that the property was in the foreclosure process he is in violation of the law and when you go to court on the eviction....which take 1-3 months, you need to mention that.
From a practical standpoint, the eviction process in such a situation takes months and the foreclosure will likely conclude before that happens.
Once the bank takes over the property they will have a R E Broke contact you probaby with an offer to leave. The offer will usually include a payment to you of 1-3 months rent as an incentive for you to leave. When they contact you mention that you want to buy the place and see if it can work out.
At minimum, you should contact the city of chicago housing authority to find out your legal rights as a tenant. It does not cost you anything.
0 votes Thank Flag Link Tue Jun 7, 2011
If you have a current lease in force (and there are months left on your lease), you have tenants' rights to stay even if it is foreclosed. Make sure you check our state's landlord/tenant rights and obligations.

Contact a realtor to find out if/when the property is going to be foreclosed, or listed for sale. Then work with that realtor to help you write an offer on the property.

Have you been paying rent AND the HOs fees?

I am curious why you are dealing with the association --- and why would they have a say in allowing you to stay? Is there something in writing to this effect, and is that a legal document?
0 votes Thank Flag Link Tue Jun 7, 2011
call the person who called you from the bank
tell the person you want to buy the place- you have to be qualified of course by a mortgage company
make offer and wait

contact me for help
Web Reference: http://www.joeschiller.net
0 votes Thank Flag Link Tue Jun 7, 2011
Difficult question. He might have time to evict you, since he still owns the house. So you could end up getting thrown out. A short sale is out because it must be an arms-length transaction (you can't have a prior relationship with the seller). You could be sued or convicted of fraud if you lie.

You could try to purchase the house at the sheriff's sale whenever that happens, but that could be some time and you will need cash and it may be auctioned for more than you are willing to pay.

I doubt the bank will be willing to make a deal with you for later; they will want to put the property on the market.

I think it would be best for you to discuss this with an attorney, especially since you might face eviction.
0 votes Thank Flag Link Tue Jun 7, 2011
Find a broker. Put in an offer for a short sale to the bank. Offer 100% cash. If you need a broker I certainly can help you. 312-315-7002
Web Reference: http://uneappraisals.com
0 votes Thank Flag Link Tue Jun 7, 2011
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