Rental Basics in Rocklin>Question Details

Sassyg-ma, Renter in Rocklin, CA

We rent, signed yrly lease w/rental agency for 2 yrs, none for 10-11, pay mo-to-mo. House to auction this month. Who gets rent money, agency or owner?

Asked by Sassyg-ma, Rocklin, CA Wed Feb 2, 2011

Owner has decreased the rent by $250 for January and February and informed the rental agency who handles the property. Do we hold off February's since it is to be auctioned mid-month in February?

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Hello Sassyg-ma. It's not exactly clear what the terms of your lease agreement are. You say you entered into a yearly lease, but then you also say it's for 2 years. Is it a 2-year lease or a lease for 1 year and perhaps a right to renew after the first year? Was the rent recuction done verbally or in writing? If it was done verbally, it's most likely not enforceable because it sounds like you have at least a 1-year lease and everything has to be in writing to be enforceable. If you plan on staying in the house after the foreclosure sale, you'll have to be able to show to the bank (your new landlord) that you are current with your rent payments and the bank will not care about any verbal agreements that you had with the old landlord for reduced rent. You said that the auction is supposed to be this month, but you don't know if it will go through. Your rent for February is presumably due on the first of the month and you are theoretically already late. For now, you still owe the rent to the owner who is represented by the agency. Have you been paying the rent to the agency or directly to the owner up until now? Nothing really changes until there is a change in ownership. Did you pay a security deposit? If you did, I would ask for the landlord/agency to return the deposit to you as it is highly unlikely that you would see the money again after the foreclosure. The law in this area is a bit of a grey zone and I would not rely on the bank giving you the deposit back when you move out.

I would recommend you have your lease agreement reviewed by an attorney. Let me know if you need a referral.

Good luck to you.

Ute Ferdig
Ferdig Real Estate Solutions
DRE # 01326917
916-751-1267
0 votes Thank Flag Link Wed Feb 2, 2011
Ute Ferdig -…, Real Estate Pro in Newcastle, CA
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Owner should still be recieving rents. If you have an agreement, you need to pay your rent. IF - property is actually actioned, which is not a given even if notice has been posted, you will very likely recieve direct communication from the new owner or asset management company. They will likely need a copy of your lease terms. Additionally, they may offer you compensation to help you relocate provided you have been meeting your lease obligations.

I've listed bank owned property in the past. You will be contacted once the property has actually foreclosed by a rep from the parties responsible for the asset.

Hope that helps!
0 votes Thank Flag Link Wed Feb 2, 2011
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