Hello I rent a apartment I have been living there for four years. The house is in short sale I have been paying my rent what do I do I have a lease?

Asked by Letmelive, Chicago, IL Fri Sep 17, 2010

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John Gall, Agent, Chicago, IL
Fri Sep 17, 2010
As long as the owner/landlord still owns the property, you are still required to pay rent to them. The term "short sale" refres to a contract between the owner and potential buyer requiring bank approval. That is irrelevant to you as a tenant.

You should, however, be concerned with what stage of the foreclosure process the owner is in. Once the home goes to public auction at the end of the foreclosure process there will be a new owner OR the new owner is the bank. I want to say that there are a few months I like to call the "cloudy months" where ownership is not clear. This is mainly due to periods of redemption where the owner can actually reclaim the property and the new owner OR bank does not officially own the property. During this period, there may not be a clear-cut person to direct your monthly payment to. It may be wise to consult an attorney and they sgould be able to give you the "quick and easy" about this common situation.

If you need further professional advice or resources, feel free to contac me,
JGall@Realtyexecutives.com
1 vote
Jamie King, Agent, Hinsdale, IL
Fri Sep 17, 2010
I suggest you get some legal advice. You may have a lease and be paying rent but if the property title changes ,you may be paying rent to the wrong party and an attorney can protect your rights.
Jamie King
1 vote
Matt Robinson, , Chicago, IL
Wed Sep 22, 2010
It's definitely time for legal advice and your best bet in terms of value and low cost would be a Tenant's Rights attorney. The group located in Roger's Park seems to get a lot of positive feedback but I know there are others. Legally, a short-sale is just one more type of sale and your rights are the same. But there's a big "however" here because the only way to qualify for a short sale is if there's been a big life change resulting in financial setback in which case the owner may not be able to return your security deposit or guarantee their legal obligations as stated in your rental agreement. I'd also consider looking for a new apartment before it starts getting cold outside. If you'd like more information, feel free to contact me directly. Best of luck though!
0 votes
Barb Van Ste…, , 60625
Fri Sep 17, 2010
Letmelive: You state that the house is in "short sale". Is there a contract on the property or is it on the market being sold?

Are you concerned about your security deposit? Do you have one?

If the property is in short sale status with a contract on it: Your lease has to be honored. I, however, would make sure where your security deposit stands with the seller but better yet, his attorney.

You have rights under the Chicago Tenant/Landlord Ordinance and I would check into it. If you have more concerns, I'd be on the phone to your Alderman's office and they will put you in contact with the right people to make sure your rights are protected as a tenant.
0 votes
Lester Zieli…, Agent, CHICAGO, IL
Fri Sep 17, 2010
A short sale buyer must honor the lease. But if it fizzles and the property goes into auction that wipes your
lease out and you will get a notice from the sherrif to vacate.
0 votes
Noah Seidenb…, Agent, Evanston, IL
Fri Sep 17, 2010
Your lease is still valid. Even if it is sold the new owner will honor the lease or offer you compensation if you have to move earlier than planned. I would not worry about it. If you want to contact the bank to assure yourself contact me or any realtor and we can look in the MLS and find out who is handling the sale.
0 votes
Philip Sencer, Agent, Chicago, IL
Fri Sep 17, 2010
If you have a lease, it is valid and nothing will change except that you will have to deal with people who come to look at it. They will need to give you notice however and the lease says how much time, usually 48hrs notice. You might need to be concerned about getting your security deposit back. The new owner will be responsibile for that, but if it does not sell, you might not get it back.
If the property goes to foreclosure, and that process can take about 1 year, the bank might buy you out of the lease just to get you out or they can go to court and get you evicted by either the shorter of 1. the end of the lease or 2. 4 months from when they go to court. In affect, they can break the lease if your lease is longer than 4 months from when they go to court. However, they usually will offer to give you some $$$ to get out early and avoid all that. You might start looking for a new home. The market tends to favor the tenant so you should have some choices.
0 votes
Matt Laricy, Agent, Chicago, IL
Fri Sep 17, 2010
You rent an apartment, that is a short sale? Or you rent an apartment, in a house, that in a short sale? A little confusing and could mean a completely different answer because the "apartment" could not mean its a legal one.

Matt Laricy
Americorp Real Estate
Brokers Associate, e-PRO
mlaricy@americorpre.com
7082502696
0 votes
Brandon Schu…, Agent, Western Springs, IL
Fri Sep 17, 2010
A short sale is basically a sale. In most cases, if you have a lease, your lease will be honored just like it would be during a normal sale. But based on the length of time that most short sales are taking, you may be there for awhile until the house sells. My only concern for you would be if the owner continues to pay the utilities.
0 votes
FSBOsuccess, Home Seller, 28590
Fri Sep 17, 2010
Unfortunately, there is not much you can do. If I am wrong, someone please correct me.
0 votes
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