Foreclosure in Woodbury>Question Details

Jill, Other/Just Looking in Woodbury, MN

rentals and forclosues

Asked by Jill, Woodbury, MN Fri Apr 24, 2009

I live in Minnesota and just found out that the home we have been renting for 5 years is in preforclosure, our lanlord did not tell us we recieved mail from there loan company. We completely finished the lower level, added a bathroom, theater, everything, dry wall, carpet ect. I stopped payment on this months rent when I found out. I see some people say to keep paying, but the way I see it is that we are not going to get the money from the landlord as he agreed to pay us for the increased value when we moved if we didnt buy the house. He has been dishonset with us, he has kept over 20,0000 dollars that we thought was going to our home. What should we do? We have not talked to the owner yet, what should we say? Some suggest negotiating a small rent until home is taken over by bank. I dont want him to evict us, and am not sure of MN law. any suggestions would be appreciated.

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why would you put money into a rental by finishing a basement that you don't own???

sounds like you need legal advice which you will not find here. if you do, run!
3 votes Thank Flag Link Fri Apr 24, 2009
What did the landlord do after you stopped payment on this months rent? I think that suggestion about renogiating the rent is a good one. You risk evectionand he might cure the default and you would lose everything.

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0 votes Thank Flag Link Tue May 24, 2011
Jill
Hopefullly this is a lesson for others that you should not be putting a lot of money into a property that you do not own or have some rights to. At this point, your only option would be to seek legal advice.
Web Reference: http://www.HomesByWebb.com
0 votes Thank Flag Link Tue May 24, 2011
Dear Jill, I would seek out an attorney. Owner has a right to the rent even though he is in foreclosure, but your investment is in the home is sad. Some lenders are allowing tenants to stay in the home until sold. If so, are you able to purchase to home today or in a few months? Justyna
0 votes Thank Flag Link Sat Dec 5, 2009
The first thing you need to do is talk to your landlord. By leaving out that source of information you are making a lot of assumptions. Get allof the information you can before you start doing or saying things. Find out the date of the foreclosure sale and the name of the bank that is foreclosing. If the owner is in financial trouble and you are a potential buyer maybe there is a way this situation can work to your advantage.
An observation with regard to stopping your rent payments: The fact that your landlord is in financial trouble does not give you the right to break a contract with him. It seems to me you are putting your own good credit at risk with this course of action.
In these times of tight financing is any bank going to give you a mortgage if you haven't been paying your rent?
Maybe you can get the owner to credit future rent to you for some of the capital improvements you have made.
Every situation is unique. Maybe you have a written option to buy, maybe it is part of your lease agreement. It's a little late for you, but a lease agreement that has you making major capital improvements to someone elses property is a hazarous proposition.
My own point of view is that you should be prepared to lose anything you put into a property you don't own. If you have alot into this house and you want to own it I would be looking ahead to how you are going to make that happen.
Maybe this will turn into an opportunity for you. Best of luck.
0 votes Thank Flag Link Mon Apr 27, 2009
Was this a lease option? Did a Realtor prepare the contract for you? If so, contact the Realor for advice. If not, there are most likely laws in yir state protecting tenants.

You may also want to contact a Realtor, as well as the owners, and see if you can negotiate a short sale.
Web Reference: http://www.cindihagley.com
0 votes Thank Flag Link Fri Apr 24, 2009
Cindi Hagley…, Real Estate Pro in San Ramon, CA
MVP'08
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I'm very sorry to hear about the situation you're in. This sounds like a unique situation but a very serious one. I would need to get more information from you about what your agreement is with your landlord, however I think the best course of action would be to contact a lawyer that specializes in real estate as soon as possible. You can go to http://www.mnfindalawyer.com and select Real Estate and Foreclosure. Also, there are some resources available through the Minnesota Attorney General's website that may be helpful to you to learn more about your rights and your options. You can access these online by going to http://www.ag.state.mn.us/consumer/housing/landlordtenants.asp. I hope this helps. Good luck.
0 votes Thank Flag Link Fri Apr 24, 2009
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