Foreclosure in 93901>Question Details

neyney, Renter in Salinas, CA

Owners not paying mortgage, can I get out of our lease?

Asked by neyney, Salinas, CA Tue Jul 3, 2012

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I had a client in a similar situation. I advised him to seek counsel which he did. Counsel advised him to quit paying rent to homeowner and attempt to pay lender direct. Lender refused to accept payments. Attorney advised client to put payments in a bank account.

Six months went by and client/renter saved 36,000 dollars. Home went into foreclosure and new owner offered a $6,000 cash for keys deal. Client/renter walked with $42,000. They now own a home. Bottom line? SEEK COUNSEL!!
0 votes Thank Flag Link Tue Jul 3, 2012
Technically No the owner still has possession of the property and you signed a lease or contract with the owner the bank has not foreclosed and taken over the property. You might get the owner to react by not paying your rent and let them know that you know they are in foreclosure and are afraid of being evicted. However if the bank does take over or it goes to auction and someone buys the home then your lease will hold up in court and have to be abided by whoever buys the property. If they want you to move then they will have to negoiate a price for you to move.
0 votes Thank Flag Link Tue Jul 3, 2012
Not to mention our doorbell is ringing daily during dinner and we are coming home to notices stuck in our door.
Flag Tue Jul 3, 2012
The problem we have is we are a large family and finding a house is not easy. There is something available to us now, and school starts in August and we need to be moved before then. Do we have any rights to get out now?
Flag Tue Jul 3, 2012
neyney:

Your lease obligation between you and your Landlord is still valid, the fact they may not be paying their mortgage does not release from your contractual obligation. Also, you might want to think twice about being in a rush to move; the fact is rental rates are on a steady climb as more former homeowners seek housing and compete for available rental housing.

In addition, you should make yourself familiar with the foreclosure rights you have - in some cases Tenants with leases can remain in the property for the full term of the lease.

"CA's "Protecting Tenants at Foreclosure Act" - need to know info!"
http://www.trulia.com/blog/steve_ornellas_mba_re_mastersgri/…

-Steve
0 votes Thank Flag Link Tue Jul 3, 2012
The problem we have is we are a large family and finding a house is not easy. There is something available to us now, and school starts in August and we need to be moved before then. Do we have any rights to get out now? Not to mention our doorbell is ringing daily during dinner and if we are not home there are notices being stuck in our door.
Flag Tue Jul 3, 2012
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