Foreclosure in Vista>Question Details

Amordmas, Renter in Vista, CA

i am renting and the house is in forclosure till when do i have to keep paying landlord

Asked by Amordmas, Vista, CA Mon Nov 14, 2011

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9
Dear Renter,

Good question, subject to terms and conditions you agreed to, you are under contractual obligation to pay the landlord the rent regardless if they pay the mortgage. It's unfortunate but you have a legal obligation to pay. If you are comfortable asking, you can try to renegotiate the terms...make sure you get it in writing too.

If and when the house goes into foreclosure a listing agent on behalf of the bank and/or seller (investor) will typically approach the renter to come to terms with moving out. SOMETIMES, and I want to make sure you understand that SOMETIMES you may be compensated for the inconvenience of having to move out. It is referred to as "cash for keys". Best regards.
2 votes Thank Flag Link Tue Nov 15, 2011
For as long as the landlord remains the owner, the rent needs to be paid in accordance to your lease; for any necessary legal advice, consult with an attorney who specializes in real estate...
2 votes Thank Flag Link Mon Nov 14, 2011
You may not want to move right away as the foreclosure process can be lengthy. So you could renegotiate the rent you pay to the landlord. I'm sure they would prefer to get some rent than none at all or have to try and re-rent it, and you might deserve a discount for the inconvenience and stress of an unplanned move at some point down the road.

If the property starts to fall into disrepair and the landlord does not fix it due to their financial situation, then you may have some recourse for withholding rent.
1 vote Thank Flag Link Mon Nov 14, 2011
I've actually been down this road with a client before. Client signs one year lease with owner 1st, last and security representing 1 months rent totaled 18k. Client finds out homeowner isn't paying the lender but instead pocketing the money. They ask me if they should continue making payments.

I advise them to seek legal counsel. Legal counsel advises them to cease making payments directly to the homeowner and see if they can work directly with lender. Lender says they can't do that legally. Counsel continues to tell them to cease making payments directly to homeower and put all payments into savings account.

2mths later homeowner gets default notice and within 6 mos client has now accumulated close to 40k in savings. Home goes to auction and new owners pay client 12k cash for keys. client now has over 50k in savings on accumulated rent alone plus other holdings.

Client accepts cash for keys offer and I sell client home. End of a very unusual but happy story. All kinds of things going on in this wierd and unprecidented RE market today. I'm not suggesting that anyone follow this protocol. It's just a story I'm sharing. Bottom line is always seek counsel on this type of thing first. It could ruin your credit and get you into a whole lot of trouble just as easily.

Bottom line? Every deal is like trying to match DNA. There's about a billion to one chance that you'll ever find one exactly like yours.
0 votes Thank Flag Link Tue Nov 15, 2011
Yes, morally and legally you must pay. All the previous answers are correct.
0 votes Thank Flag Link Mon Nov 14, 2011
I think that keeping an eye on the foreclosure date is a good idea. You would be expected to pay the landlord as long as s/he continues to own the property unless you have an arrangement that defies that agreement. Also, if the landlord had an assignment of rents clause in his note (no way that you would know that), then the agreement could possibly be different.
0 votes Thank Flag Link Mon Nov 14, 2011
hi, pls check that who u do pay your rent to is actually the new owner and u confirm this in writing. maureen@bellrealtygroup.com
Web Reference: http://www.coastal.biz
0 votes Thank Flag Link Mon Nov 14, 2011
As long as the title to the home is in the landlord's name, they are the rightful owner to lawfully allow the property to be rented out (and expect tenant payment).

Possible way to mitigate future surprises:
1. Foreclosures are public record, so contact any San Diego Realtor here, and they will tap into their tools get you an answer quickly. Then discuss an agreeable solution for a new lease end-date with your landlord.
2. Even though you have protections from eviction in the case of forclosure, I'd re-negotiate the lease end-date and find another place to live.
Web Reference: http://www.beachside360.com
0 votes Thank Flag Link Mon Nov 14, 2011
Amordmas,
Yes, the first answer is correct. You need to continue paying your rent as per your lease agreement.
Should you stop paying, the owner would then have legal recoarse against you. For more info. on your rights should the home actually become reposessed by the lender, I suggest you consult with a real estate attorney.
Brad
0 votes Thank Flag Link Mon Nov 14, 2011
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