Can a house be rented after it is already in preforeclosure?

Asked by Confusedrenter, Arlington, MA Wed Nov 17, 2010

The place I rented from was 8 months in default of the mortgage and the other renters and myself were unaware of it until a month after we moved in. I was doing searches on the place after that to find out exactely what was going on and found listings for it that were 8 months past due. Is that even legal? Is there anything that can be done? Isn't there consumer protection from such blatant fraud? Can the attorney general do anything in the favor of the tenants?

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James Gordon…, Agent, Hamilton, OH
Thu Dec 9, 2010
Mr real estate that link to the state of Idaho home page would not be very helpful to someone in MA. In Ohio the owner is the owner until the deed has been recorded from the sherrif auction after the forclosure action is final.
The forclosure action and sherrif sale timeline in my area is now running about 2 years.
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Alo webb, Landlord, New Rochelle, NY
Wed Dec 8, 2010
Yes. It is classified as misdemeanor or felony fraud. The final criminal complaint will be determined by the district attorney. The revised laws protecting tenants became effective May, 2009… These laws further stipulate that landlords must disclose to all tenants the foreclosure status of the property before it can be rented. Additionally, the landlord can issue only a month to month lease.

If your landlord issued a lease while the property was in foreclosure you can contact your local district attorney to review your options to file a criminal complaint. To further review your rights based on the federal statutes you can click the link here,…
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Louis Wolfs…, Agent, Needham, MA
Wed Nov 17, 2010
I quess the question is do you have a TAW agreement or a lease agreement.

The owner can rent it to you as he is still the owner. He can enter into either of the two agreements above. How is it fraud? You've been living there. You can look for another place if you are unhappy.
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Scott A. Nel…, , 02155
Wed Nov 17, 2010
Sorry to hear what you've been going through. Unfortunatly yes it's business as usual until the lender formally forecloses on you. Fortunatly you're here in Massachusetts, one of the most pro-tenant states around. You'll need to have an attorney review your rental documents to see what type of agreement you have & what conditions are allowed for & remedies available. Unfortunatly if your landlord is losing the property to foreclosure there may not be many remedies money wise available to you but often times the foreclosing lender will offer "cash for keys" if you can vacate the property in a certain time frame & leave it in good condition. Make sure you also document where any security deposits were escrowed. Your landlord was required to notify you within a small timeframe of your occupancy where and in what bank your security deposit was escrowed. You'll want to check on that just to be safe. Last months rent which is often retained by the landlord can be a problem if they already spent it and have no funds & go bankrupt. An attorney can best advise you for your situation.

Good Luck with everything,
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Mike Young, Other Pro, Fairfield, CA
Wed Nov 17, 2010
I had this happen once and the agent wanting to list the home came to my front door and introduced himself as the representative of the new owner and tried to push his way into the home saying he needs to inspect the home for the seller. I push him right back out and informed him I had paid rent for several months in advance and he could contact me then if he didn't change his approach.He changed it and we ended up buying it. They put on a new roof and cure the pest report we got and we didn't have to move.
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Amy Mullen, Agent, Shrewsbury, MA
Wed Nov 17, 2010
I am sorry to hear this! This is a great reason to work with a Realtor on rentals (both the landlord OR the tenant side).

Unfortunately there isn't much you can do unless the homeowner takes care of their issues with the mortgage company.

What is the address? (You can email me directly to retain your privacy) and I can see how far along the foreclosure is and how much time you have.

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Andrew Adams, , 01915
Wed Nov 17, 2010
Like what? The bank will foreclose and have to then go through the standard eviction process. Your protection is in the eviction process.
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