Foreclosure in 91911>Question Details

Angie, Renter in 91911

My landlord filed bankruptcy before we moved in, and was closed 5 months later. We had no idea, and rcvd a notice of trustee sale months after that,

Asked by Angie, 91911 Thu Jun 17, 2010

meanwhile paying rent every month. is this fraud on his part? can i report him to the California Bankruptcy court?

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Yes, I would consult with an attorney. If he filed bankruptcy you may not be able to get much out of them, but it is worth trying.

Patrick A. Hale, CDPE, RSD
Real Estate Broker & Investor

"Help Over 360 Distressed Home Owners Avoid Foreclosure"
If You or Someone You Know is in Financial Distress Visit:
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0 votes Thank Flag Link Thu Aug 12, 2010
Angie - My colleagues are correct, that you may want to consult an attorney.

I can tell you that the landlord, as long as he still owns the property, has the right to rent it out and collect rent. Of course, it wasn't ethical for him not to advise you of his situation, but it happens here in Las Vegas frequently. Chances are his loan was adjustable and it reset and he could no longer make the payments. This is not illegal.

Tenants who are living in rental properties now have rights. Again, check with a local real estate attorney. If you were planning on suing your landlord, you'd probably be wasting your time because they are having financial difficulty which is why they quit making payments on their loan.

What happens here is the bank that has the mortgage will often send out an asset manager to do an occupancy check. They will ppst a notice that lets you know the property is being foreclosed on. If the property goes to sale on the courthouse steps, one of 3 things can happen:

1- If no one buys the property at auction, the lender will direct their chosen real estate agent or asset manager to come and make you a cash for keys offer, basically offering you money to move in 30 days or less and leave the property in good condition.

2-If an investor buys the property at the auction, in Las Vegas, he is required to honor the terms of the lease of the existing tenant. So if you have 5 months left on your lease, he has to let you stay the remaining 5 months. This means you now pay the new owner the rent. You don't get to live there for free.

3-If someone purchases the property at the auction and they intend to owner occupy, it is there job to negotiate with you so you'll move.

Again, check with a real estate attorney regarding your rights in California as a tenant living in a foreclosed property.
0 votes Thank Flag Link Thu Jun 17, 2010
Angle, I suggest you talk with an attorney about your situation. Real estate agents are not licensed to answer legal questions (unless they are also a licensed attorney).

Just from a practical point of view, at least you were living in the home while you were paying rent as opposed to lets say not getting paid back on a loan that someone owed you because they filed bankruptcy.
0 votes Thank Flag Link Thu Jun 17, 2010

The best advice anyone can give you is to consult with an attorney. You need to know your rights. Good luck.

Warm regards,
Maggie Hawk, REALTOR
(386) 314-1149
Watson Realty Corp.
0 votes Thank Flag Link Thu Jun 17, 2010
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