Home Selling in 60406>Question Details

Bshenita, Renter in 60406

was told by the landlord not to pay rent. the property is up for an short sale what happens when a new owner takes over will we be asked to vacant

Asked by Bshenita, 60406 Wed Jul 13, 2011

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Yes - the lease transfers to the new owner; however, if the house can't be purchased at short sale it could be a matter of months or weeks until foreclosure. In that case, you may have to move immediately with little to no notice. My advice is to ask your landlord to modify your lease term for month to month and find someplace new - and do it fast. Short sale will be on the market and you have to let it be shown, which is a disruption at best. If they will modify the lease also to say you don't need to pay - may be ok - get legal advice and make sure everything is in writing.

But I wouldn't wait around for the bottom to fall out. It was nice your landlord told you this though. Often people are just served with sheriff notice and evicted because of foreclosure.
0 votes Thank Flag Link Wed Jul 13, 2011
As long as you are in the property, you are required to pay rent. That's what your lease says and that's what a judge will look at. If the landlord told you to stop, ask him to put it in writing. Without a writing signed by the landlord, the landlord can say at a later date that you are in violation of your lease and start eviction.

When the new owner takes over, they are bound by the lease that you have. If you are month to month, the new landlord has to give you a 30 day notice that your lease will be terminated. If you got a 30 day notice today, you would have to be out by September 1st (assuming that your rent is due on the first of each month.

Attorney Ranj Mohip is a Chicago real estate attorney. The information in this answer is general information and is not intended as legal advice. Further, answering this question or otherwise contributing as a member of Trulia.com does not create an attorney-client relationship. Remember--consult the best real estate attorney in Chicago or in your respective area. Contact us at http://www.ranjmohip.com for more information
2 votes Thank Flag Link Thu Jul 14, 2011
Look ride it out as long as you can, save the rent money there is a very good chance the owner will not be returning your last months rent nor your deposit. Start looking for a new place soon, even if you seem to have time before they would throw you out. which is a s possible as they might accept the terms of your lease, However, which no one below mentioned if it was a regular mortgage, the home was supposed to be the owner's residence and not an investment property, in which case the bank needs not honor your lease! Request for you to vacate before the closing by the new buyer is very possible! Your lease would be considered void in all aspects because the existence of one would have been a loan default in itself! So you need to CYA and start collecting 1st, Last, and Security for the next place you rent!
0 votes Thank Flag Link Wed Jul 13, 2011
When the new owner "takes over," the lease you had with the current owner transfers over to the new owner. So if your lease has 6 months to go, the new owner must honor that.

However, there's a complication. You say the landlord told you not to pay rent. That's fine for you right now. (However--and because I'm not a lawyer, this isn't legal advice--I sure hope you got that in writing.) However, the current owner may be setting you up for an eviction. You're violating the terms of your lease--unless your lease was modified to require $0 monthly rental payments--and thus helping build a case for your own eviction. I don't know how the landlord-tenant courts in Cook County operate--whether they're friendly to tenants or to owners--so I don't know how long it'd take to evict you. It could be just a month; it could be close to a year or more.

Again, I'm not a lawyer, so this isn't legal advice. But at the very least, for your protection, you should have something in writing from the landlord regarding non-payment of rent. Ideally, execute an addendum to your lease reflecting a rent of $0--or probably something close to it, like $25 a month. Again, run that by a lawyer.

Hope that helps.
0 votes Thank Flag Link Wed Jul 13, 2011
Don Tepper, Real Estate Pro in Burke, VA
That would depend on whether you have a lease that would carry you over into the time period of the new owners possession. Legally you should be paying rent as the landlord is still in possession. So if the landlord is telling you to skip the rent, is he also telling you to be prepared to move when the home sells? It sounds like he is doing you a favor in skipping rent payments so you can save up enough money for 1st months and deposit on a new home.
0 votes Thank Flag Link Wed Jul 13, 2011
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