We're renting through a property management company and the owner (investor) is in foreclosure. This is our

Asked by Hey, Columbia, SC Mon Mar 23, 2009

second year renting this property....our lease in up in July. I called the property manager to see if the lender would let us stay until the end of May. However, they were clueless..The owner sent a fax and mentioned that they should collect Feb rent (which we paid) and let us live there rent free until further notice. I think that's a bit odd. I called the lender on the deed--only to find out the original bank was taken over. SO, what does this mean? We're still paying rent -that's sitting in an account with our property management company. We'd just like to stay until May (although our lease isn't up until July). and don't feel comfortable NOT paying rent...we would prefer to pay directly to lender as they should be getting the money anyway . Any thoughts would be great!!

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Paul Andres, , Sacramento, CA
Mon Mar 23, 2009
It's unusual for an owner to notify you of the pending foreclosure, in my experience most continue to collect the rent and the tenant is shocked to find out when receiving notice to vacate from the bank's real estate agent.

Ordinarily once the bank takes the property back they will assign a local real estate agent to evaluate the property; condition, occupancy... If the real estate agent finds the property to be occupied the bank will instruct the agent to offer the occupant Cash for Keys to voluntarily vacate the property in clean condition leaving no personal property or debris.

Depending on the value of the neighborhood the Cash for Keys can be between $1,000 and $3,000 with a vacate date usually being between 2 weeks to 1 month. It’s generous for you to want to pay the lender however there are few circumstances where the lender will accept funds from the tenant; there main objective is to have you move out as quickly as possible.

Wait to hear from the real estate agent and collect your cash for keys; you will also receive a letter from an eviction attorney, don’t be alarmed it is standard legal practice to begin the eviction process. Keep in mind that you may not be getting your deposit back from the homeowner. Hope this helps
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