Foreclosure in Cleveland>Question Details

Dimplesstuff, Other/Just Looking in Cleveland, OH

What happens when property goes up for sale at sheriffs auction, but the property is tenant occupied?

Asked by Dimplesstuff, Cleveland, OH Sat Mar 6, 2010

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3
THREE years old;
Probably Foreclosed!
0 votes Thank Flag Link Mon Feb 25, 2013
What about of your the owner and occupy the property
0 votes Thank Flag Link Mon Feb 25, 2013
Hi D,

I am not sure if you are the tenant or the owner.

If you are the owner you should consider telling your tenant that the property is headed into foreclosure so they have some time to get prepared to move out and move on with their life, especially if they have children so the tenants can plan a move that is less disruptive to the school year and such. I believe that you need to be very careful about collecting rent while you are not paying the mortgage and there are laws on the books that protect tenants. You might consider not collecting rent the last couple months so they can save their money for a move. The other thing you might consider is giving the tenant a lease agreement so they can provide a copy to the new owner of the property...therefore they can negotiate a rental agreement with the new owner or show to the judge if the bank is trying to evict them.

If you are the tenant then the property will head into foreclosure and there will be a new owner, either a third party that bought the property at auction or the bank that now owns the property. You might have a few scammers knocking on your door saying they own the place and you need to pay them rent. Please be careful make sure you only pay rent once a month and to the correct person. You might also try to get a lease agreement signed with the current owner and then record the lease on the title, therefore you will be notified when something is going on with the property and in case the property goes back to the bank and the bank tries to evict you and takes you to court you have a lease agreement and you can show the judge. Hopefully the judge will side with you and agree that the new owner has to honor the remainder of the lease agreement. I think the leases are only valid for 12 months.

Good luck!

Hannah Fliegel
0 votes Thank Flag Link Sun Mar 7, 2010
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