Foreclosure in 55057>Question Details

Tasha123, Renter in Northfield, MN

we currently rent out house and our lease is til sept, but it's goes into foreclosure April 21st. Will we still be able to live there til sept?

Asked by Tasha123, Northfield, MN Sun Apr 3, 2011

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Steele V. Propp’s answer
Let me add a caveat to getting out of a lease. Just because the landlord is not paying the mortgage, it doesn't mean you don't have to pay rent or can just break the lease without cause. These are two separate contracts.

I have seen landlords take renters to small claims court and consistantly win when it comes to getting rent money. Look over your lease carefully before withholding rent or leaving. Now, the landlord may be fine and let you out of the lease but that is their decision. And I would get any agreement in writing.

Have you talked to your landlord yet?

0 votes Thank Flag Link Mon Apr 4, 2011

I would start to make plans to get out. Call your landlord and ask what their intentions are. It makes sense that they would want to milk as much money out of the property (since they aren't paying the mortgage now), but I find that most landlords in this situation become very unresponsive to their tenants. If something breaks I doubt they will be "right over" to fix it for you. While technically you are obligated to pay the landlord until the end of the lease you may want to ask to get out early since the property is going into foreclosure. Post back some more information so that we might be able to help you (see questions from other agents).

Cameron Piper
Coldwell Banker Burnet
Web Reference:
0 votes Thank Flag Link Mon Apr 4, 2011
Minnesota has a six month redemption period. This means the homeowner has six months from the date of the auction to pay what is owed to the bank and redeem the property. Which means the homeowner will continue to own the property until at least October 2011. There are two exceptions to the rule. If the homeowner was able to delay the original auction date (trying to do a loan mod), then the redemption period can shrink to 5 weeks. The redemption period can also fall to 5 weeks when a property is abandoned.

You will need to continue to pay your rent to your landlord during the redemption period as they technically still own the home.
0 votes Thank Flag Link Sun Apr 3, 2011
Please don't mistake the following as any form of legal advice--it's not.

The challenge for some, who aren't experts in the foreclosure process, is finding the right info in sufficient time. The staff for many county clerk of courts offices nationwide won't answer any questions beyond basic auction date info, or where certain records are physically located, and they'd redirect all other requests to an attorney. Plus, most of them won't share that kind of info with someone who isn't a party to the foreclosure action, and a renter isn't a party to the foreclosure action.

Additionally, the right of redemption is often (and is in MN) transferable. So even if the current owner of record opted to convey that right to someone else, then a renter might have to move sooner than the expiration of the redemption period.
0 votes Thank Flag Link Sun Apr 3, 2011
As Sharon suggests you need to know just where in the foreclosure process the property is. Is it just the first notices of foreclosure or are you talking about the Sheriff Sale date? You will have the six month redemption period after this sale that the owner will continue to have full rights to the property. It would seem to make sense to continue to rent to you for as long as he/she can.

So at this point you need to figure out the timetable. Contact the county and/or Sheriff Department to see if the sale is what is coming up the 21st.

Best wishes,

Steele V. Propp
Foreclosure Specialist

2100 Foreclosure Buyers Guide
0 votes Thank Flag Link Sun Apr 3, 2011
Ever state has different laws. Do not waste money hiring an attorney, google the laws in your state. In California a renter has the right to stay in the property and pay the lease amount to the bank. By law, in California even if you sell a home the renters have the right to the lease contract. The person who would really know would be a local real estate agent in your area who is an investor/landord. As an investor I know the laws of the states I have homes in, so this should really help should be open today!
0 votes Thank Flag Link Sun Apr 3, 2011
Hi Tasha, the answer will depend on a few details. The most important for your situation is when did the actual Sheriffs sale occur, or is going to occur. The landlord will legally continue to own the property until 6 months after the sheriffs sale, unless the landlord enter into some other agreement with the mortgage company. You could hire an attorney, but most real estate professionsals can look over the documents you have and look up the records in the county to find the answers to your questions.
Web Reference:
0 votes Thank Flag Link Sun Apr 3, 2011
What does "going into foreclosure" mean. There must be a legal diocument filed and published before the Default process starts. Since you have a spific date, it sounds like that could be the day of the auction. Many auctions get postponed a number of times. However, if the auction is finalized on April 21, the new owner has every right to demand legally for you to leave. So you must know exactly what is happening on April 21

David Cooper. Las Vegas Foreclosure Investor in Bank Owned Cash flow Houses. FReee List +1-7024997037...selling 20% below market
not a real estate agent. ask for 10% down investor financing
0 votes Thank Flag Link Sun Apr 3, 2011
You probably should hire an attorney, and prepare for the worst just in case.
0 votes Thank Flag Link Sun Apr 3, 2011
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