Foreclosure in Kannapolis>Question Details

Sharon Jarre…, Renter in Concord, NC

I signed a two year lease on a house in N.C. The owners are $2,000 behind on mortgage and Wells Fargo gave them til end of April to bring current.

Asked by Sharon Jarrell, Concord, NC Thu Apr 14, 2011

How soon will it be before foreclosure is posted on front door if they don't catch their mortgage up? I signed the lease with a real estate company that is handling the house and I guess if the house goes into foreclosure my lease is then null and void? I do not want to pay Wells Fargo rent if they should take the house and am willing to move if it is foreclosed on so they are free to auction or sell the house. Is this what will happen?

Help the community by answering this question:

Answers

5
Undetermined when the lender would foreclose on the property could be 3 months - 12 months based on many factors involved.

OR the property owner could bring the payments current everything is then taken care of .

If the home is foreclosed on the resident of the property SHOULD start to receive notices HOWEVER best resolve these issues with property owner IF necessary start to search for a new location

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Fri Apr 15, 2011
It is difficult to say when WellsFargo would actually foreclose. But you would have up to 90 days once the bank notified you of the foreclosure sale date. You do have the right to pay WellsFargo directly in most cases. But if you stop paying the lease payments, you would have 30 days to vacate.

These laws have been changing with different court cases, and in most instances you could go to court to enforce your lease. But sounds like you don't want to do that.
____________________________________

If you liked this post, GIVE ME A THUMBS UP!
____________________________________
Nate Wolf was recently named a FIVE STAR REALTOR by Charlotte Magazine. He is a top producing real estate sales broker, representing both buyers and sellers. He is a member of the National Association of Realtors, The Charlotte Regional Realtors Association and the Carolina Multiple Listing Services. He is licensed in multiple states and serves all areas of Metro Charlotte from Lake Norman to Lake Wylie and Uptown / Center City to SouthPark and Ballantyne.

http://www.natewolf.com
charlotte mls realtor home listings
http://www.CLThome.com
Web Reference: http://www.natewolf.com
0 votes Thank Flag Link Fri Apr 15, 2011
Hi Sharon,
Some things you will have options on and some things you will not.
First - the foreclosure process is long. It may take one to even two years. Until foreclosure happens, continue with your rent as before. It is possible your two year term will be up before the house gets foreclosed on.
Two - once it IS foreclosed on (which is many months after the notices you get posted on the door) the ownership changes. Either an investor will buy the house at auction, or the bank will take the house back. In your state, the bank may be required to honor the lease. In MY state, you have 3 months to vacate after the foreclosure.
Three - If the bank DOES become the owner of the house, you either have to pay them rent or move. If you refuse, you become an illegal squatter, and will get evicted.
PHil
0 votes Thank Flag Link Fri Apr 15, 2011
Sharon,

I believe the bank is required to honor your lease to its full term should you wish to stay in the property and as long as you are current on your rent payments. The bank may try to buy you out. If so, the amount is negotiable. Sometimes they don't even require any payments as your new landlord but be careful. If the bank offers to forgive your rent, make sure you get that in writing and understand the consequences. You could end up breaching your lease agreement which may lead to an eviction.

Good Luck,

Oggi Kashi
Paragon Real Estate Group
CA DRE 01844627
Web Reference: http://www.oggikashi.com/
0 votes Thank Flag Link Fri Apr 15, 2011
I would assume the same rules here in Colorado would also apply in N.C. being that Wells Fargo is a nation wide company and has foresloures all over the country. My understanding is that the banks dont throw you out on the streets with a days notice.. They have someone contact you via phone or in person to visit with the tenants to negotiate a move out date. I have seen them offer tenants money to insure that the home is left in good condition when you vacate. On the day you move out and had over the property to the agent, they would hand you a check. Ive seen tenants receive $1,000-$2,000. I also believe that you still have a rental agreement with the Sellers even though they are not making the payments. It doesnt seem fair but you must continue to pay the seller the amount you agreed upon under the terms of your lease or they can get you for default. I am not an attorney nor am I giving advise I am simply sharing a few experiences that I have witnessed myself.
One set of tenants actually renegotiated rent with the seller and saved some money because if the tenants moved out immediately then the seller wouldnt receive a penny. This is where I am not sure about the lease agreement and if the laws allow you to break the lease if this situation does occur. However, I think that if you do remain in the home then your technically still under a lease agreement. I hope this helps a little. .Good luck! Id love to hear how it turns out for you in N.C...
0 votes Thank Flag Link Thu Apr 14, 2011
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer