You have to pay your rent because until the bank forecloses on him it is legally his home.
If he would start paying his mortgage again then they wouldn't even end up foreclosing.
Just because he isn't fulfilling his obligations, doesn't mean that you don't have to fulfill yours.
If you stop paying your rent he will have the same rights over you that the banks have over him-the right to collect a debt.
I hope this was helpful.
Now that you know that is an option you should plan well for the future and perhaps start looking for another place to stay on your own time instead of being forced out.
Each city has its own lanlord tenant laws. Look into those; the city you live in should possibly have a liason that can give you advice as to whether paying the housing court would be an option for you.
Call the local housing authority, they will probably be able to provide you with his/her name and number.
Hope everything works out for you and the landlord.
Why wouldn't you?
If you bought a car from GM while they were in bankruptcy, would you be asking: "Do I still have to pay for the car?" I doubt it.
If you went to a grocery store that had filed for reorganization, would you be asking: "Do I still have to pay for the food?" I hope not.
So what makes you think you don't have to pay rent? You're living there. You have a valid lease. The owners agreed to rent to you, and you agreed to pay for that privilege. Besides, the financial situation of the owners is none of your business. You certainly were in your rights to check public records, as you appear to have done. But so what? You've got a lease. You've got a place to live. You pay the rent to the owner.
And besides, think of it this way: If you stop paying rent, in violation of your lease, you'll only increase the odds that the property will be foreclosed upon. At least now the owner has some options: short sale, loan modification, possibly a regular sale. Or possibly catching up on the past-due payments and bringing the mortgage current. The only real effect your failure to pay will have is that it increases the likelihood of a foreclosure, and you finding yourself out on the street. On top of that, if you stop paying rent, the owner would be within his rights to have you evicted. And that'd make it more difficult for you to find another place to live.
Pay your rent. Be thankful you have a place to live. And be thankful that you have the money to pay the rent.
While the mortgage mess is still forcing more homeowners into foreclosures, tenants are also taking on new risks being in these rental properties. Plenty of homes and condos are made available for renting because owners could not sell the properties but they also never intended to be landlords. These owners reluctantly lease out the properties to make the mortgage payments but with the sub-prime loans resetting and the declining property value, owners are still not able to afford the mortgage payments. The foreclosure process then starts and tenants are forced out of the properties.
Often tenants are left with little notice and in the middle of a lease, are forced to moved. Many of these tenants are not even behind on their payments and owners purposely pocketing the rent money and keeping them out of the loop on the foreclosure. The landlords and lenders are not legally obligated to inform the tenants with a timely period of the foreclosure. Lenders have the right to void the lease agreements between the landlord and the tenants once the property is in foreclosure in some states. Once the property is foreclosed on then the lenders are quickly to evict the tenants and empty the property. The lenders are usually not willing to keep tenants in a property because its easier and faster to sell an emptied property.
A lot of time these tenants are not willing or did not have enough time to find a new place, the lenders are offering a "cash for keys" incentives. This means that the tenants are offered enough money for moving costs of up to $1,000 to $2,000. But these tenants usually lose out on getting their deposit and back rent from defaulting owners. Only a few states pass a law protecting tenants from foreclosed properties. Tenants could take legal action but this can be costly with limited results.
Advice to tenants in a rental property
If you are in a rental property or getting ready to move in one, it would be wise to due some due diligence.
Due a credit check, ask for a credit report or credit reference. If the owners have a problem with this then it is a sign indicating problems.
Notice of default or sheriff sale date, usually would be posted at the front door of the property. If you do get one of these at the door then you should get involved,talk to the owner and the lender so you are aware where they are at in the process. Don't rely on the owner when they say,"Not to worry and I'll handle it."
Go online or county records office,check public records to see if payments are delinquent, if the property is already in foreclosure and when the sheriff sale date is, so you will have some time to make arrangements.
Check property tax, If the owner owes in property taxes and association dues then most likely they owe on the mortgage.
Check the foreclosure laws and the redemption periods in your area.
Some other tips, If the landlord is asking for a high amount of deposit or a couple of months rent in advance you should be leery. Also you should pay attention if people are driving by slowly, looking at the property, and taking pictures then the property most likely are being looked at by prospective buyers.
For tenants rights and information, go to http://www.yourrealestatechic.com
Article Source: http://EzineArticles.com/?expert=Kayla_Hoang
Article Source: http://EzineArticles.com/1063700
PS. Renters don't trust a real estate agent or a homeowner with your money, if you work for it, let it work for you & your Family.
With a pre-foreclosure the owner still owns the property. You have a lease does not matter if the owner is not making his payments. He maybe trying to negotiate with the bank to modify his loan. Some banks are telling clients to stop making payments, bad idea by the way. If they are modified they will still be responsible for making up those payments.. Why do you think you can live there for free. Who lives anywhere for free. If it is a bank owned than the bank will take the home. But they will give notice to the Owner and you will be notified before locked out. But you are stating pre-foreclosure. If you are uncomfortable and are in a month to month then move. If you have a longer lease try to negotiate with the seller based on the foreclosure. If not in writing, give the owner a 30 day notice in writing..., if the owner gives you an ok to vacate sooner get it in writing signed by both of you. This is not legal advise I am not attorney. If you want legal advise contact an attorney on your rights. But in the real world none of us live or get anything for free. Why would you feel that since the owner is going through a hardship, you should profit from it. Are you kidding me. Sorry just tell it like it is. If you want to stay get an attorney on your rights.
You may ask a Realtor to check with their Title Agent to get the timeline as it pertains to the NOD filing.
Seeing as how you are in California you have many rights. If you like the home enjoy it as you do and if the seller goes into foreclosure don't worry about that either, but ifn you have an honest landlord he should stop taking rent from you since he no longer owns the property. Befriend someone at public records, the local title company, or someone with access to public records, I mean this is California you ahve to know at least a dozen agents, seriously you cant wave your hands around without running into a half dozen realtors for pete's sake.If he is preforeclosure there will be notices of default filed on the property (as you said) but they can be resicned and mistakes happen. Call or e-mail your local public records source to check to see if your owner is still an owner before making rent payments.
In most cases you will get some sort of notification at the time the home goes into foreclosure. The new owner still has to respect tenant rights giving you 60 days to move and will usually pay you for the priveledge. If they play hardball with you, then seek help fron an attorney. Since you have/had no lease and then it is a foreclosure property, you have a lot of rights and some power over what happens.
But forget about all that. Now that you know, you can simply get rid of the headache and move out right now.
You need to talk to an attorney who is familiar with the law where you live and ignore advice from well meaning real estate agents from other areas with different laws.
You have a contract that says you are supposed to pay rent. You are asking if you can break your contract. Why would you take the advice of anyone other than a legal expertâ€¦an attorneyâ€¦in what is obviously a legal matter.
Be careful of real estate agents trying to give legal advice.
Agents: watch what you say!...(or write, in this case).
Having stated the above, I think Don Tepper nailed it!
Talk to an attorney