Renting a home, how do I know if it is now an REO?

Asked by karadoering, Lake in the Hills, IL Wed Jun 20, 2012

Been renting this home for a 1yr. paperwork recently came to the home that the owner went into foreclosure in 2009, and appears to now be an REO since March, 2012. How do I find out for sure? My lease expired last month? How much time do I have here before the bank takes some sort of action? Am I supposed to still pay the owners/ defendants?

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Randy Schule…, Agent, Saint Charles, IL
Tue Jun 26, 2012
Kara - if you haven't already done so you should contact a local attorney. I have an excellent attorney that I work with in Crystal Lake if you need a referral. This attorney represented two of my clients on closings this week. Of the two homes I closed, one of these was a home on which the seller had stopped making payments.

I have heard from others in your situation that didn't know what to do. So, they simply stopped paying the rent. This will get the attention of any proper owner of the home. The tenant set aside the rent money for when they finally received the call that rent money was due.

Don't hesitate to call an attorney this week. Take the papers you received to the attorney for review. Your next payment is coming up in just a few days and you'll want to have an answer before you send that next check!
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Suzanne Hami…, Agent, Orland Park, IL
Thu Jun 21, 2012
The only way is to find out through public records if it has been foreclosed or in preforeclosure. This is not available to everyone and is not an exact science.

However, if it is on the market with a Realtor, you have a better shot. You can also ask a Realtor to help you find something and ask them to look up in public records. However, the minute you sign the lease and move in, the bank could foreclose, you don't know.

Renting is a leap of faith on both sides of the coin. Unfortunately, this is happening to people. The only way you can be sure is to get out of the rental game and buy.

You need to keep paying legally, if you are living there, or the bank or landlord could have you evicted. You don't want that on your record. You are living there, so you should pay, but you need to find somewhere else to live. You can ask the bank or the landlord about time, but you may not get an accurate answer. Typically in these situations, the landlord knows months in advance or at least 30 days. If the sheriff serves the foreclosure papers or posts, you will be given the time frame.

I wouldn't wait. You want to have time to find something you like. Being under the gun on time never produces the best results. Good luck.
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Steve Jolly, Agent, Nashville, TN
Thu Jun 21, 2012
If you meet certain criteria, you may be protected by the Tenants in Foreclosure Act. I would recommend that you contact an attorney.
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Larry Hines, Agent, Algonquin, IL
Wed Jun 20, 2012
Email me the address and I will see what I can dig up for you. If it was sold at the sheriff sale you have about 30 days. Have you called your landlord? You should ask for your secirity deposit back. you can call me if you want some help in finding a new place soon.
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Thanks Larry. The address is 5523 Chantilly Circle, Lake in the Hills, 60156. I didn't call the landlord just yet, as I wanted to be sure about all the paperwork that I had read, and I didn't want them to think I was being accusational. I also doubt that they would be honest with me, since they haven't been so far. I really appreciate you trying to see what you can find. I am pretty sure we will be contacting you soon for a new place....
Flag Thu Jun 21, 2012
Scott Godzyk, Agent, Manchester, NH
Wed Jun 20, 2012
If you received a notice then you should contact who sent it to you. You can search the tax cards with your town/city to see if there is a change in ownership and can also research the deed if your area has an online deed search. You should probabily not be paying the former owners if they no longer own it. For legal questions you may want to meet with a local attorney for the free first meeting to know what your rights are Good luck working things out
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