Foreclosure in 48084>Question Details

Mike, Renter in 48084

im currently renting a house and the owner is going to short sell it due to her husband passing away. i have another year left on my lease. will i?

Asked by Mike, 48084 Wed Jun 2, 2010

be forced to move out? what will happen?

Help the community by answering this question:

Answers

3
the buyer will have to buy property with the renter
0 votes Thank Flag Link Wed Mar 7, 2012
Mike,

It's a great question. Washington state tenant laws supersede sales, so your lease will survive the closing of any real estate purchase and sale (short sale or not). The new owner will have to honor the terms of your lease. Either the seller or the new buyer may try to "buy you out" of your lease by offering you an incentive to move early, but you are not required to do this.
Web Reference: http://www.dougbaldwin.biz
0 votes Thank Flag Link Wed Jun 2, 2010
In most cases, the lease continues to run after the sale of a home. There may be some exceptions to that--and it's possible that a lease would provide for its termination upon the sale of a home--but generally the new owner would be bound by the terms and conditions of the lease, as would you.

To be sure, you should consult an attorney.

If you really like the house, though, why not offer to buy it from the current owner? You don't provide enough details on the owner's financial situation--and if it's very difficult, she may not be in a position to provide owner financing. However, if she's just thinking: "My husband died and I don't want the home," you could offer to buy it from her.

Now, if it's a short sale, then presumably she owes more on it than the property is worth. And if it's a lot, then it wouldn't make sense for you to overpay for the property. But if it's close--or, better yet, if there's some equity in the property (in which case she really wouldn't have to do a short sale at all), you could buy it from her with owner financing (maybe on a land contract). Or acquire it in a "subject to" transaction where you'd receive the deed and start making the mortgage payments. There are a number of variations of that strategy, but you get the idea.

Be sure to talk to an attorney if you do decide to go ahead with one of those options.

Hope that helps.
0 votes Thank Flag Link Wed Jun 2, 2010
While that's great in theory, not so much in practice as the transaction would not be arms length for the short sale and as a result, would not be approved. Your second option isn't really my favorite either as i'm sure there would be a due on sale clause upon transfer.
Flag Thu Mar 19, 2015
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
Search Advice
Ask our community a question
Email me when…

Learn more

Home > Michigan > Oakland County > Troy > 48084 > Foreclosure in 48084 > Question
Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer