Im living in a house thats being short sold should we still be paying rent ?

Asked by Hmmmmmm, 95628 Mon Dec 21, 2009

Help the community by answering this question:

+ web reference
Web reference:

Answers

10
Pat Coursault, Agent, St Louis, MO
Tue Jun 4, 2013
Yes you are still obligated to pay your rent. Some landlords will work with you on a possible incentive for allowing the home to be shown to a prospective buyer while you are living there. The short sale only means that the seller is selling the property for an amount less than what is owed to the bank.
0 votes
Alienkittens, Home Buyer, Philadelphia, PA
Tue Jan 24, 2012
A house that is being short sold does not mean that the landlord has stopped paying the mortgage. All it means is that the bank is willing to accept a price that is less than what the owners owe on the house. It has nothing to do with the agreement between you and the landlord therefore you should still pay your rent.
0 votes
M361, Both Buyer And Seller, Sacramento, CA
Sat Apr 10, 2010
Your landlord may have stopped paying the mortgage. LL has obligation to bank, you have obligation ti LL. You may want to consider purchasing the home yourself, an FHA loan can still bve had with 3-5%downpayment. LL gets nothing from short sale. he does however get your money every month while not paying the bank. if LL is doing SS he no longer cares about owning the property and laughs all the way to the bank with your check. It is your own decision to make, no one is meeting their obligations these days, those that do get the short end of the stick.
0 votes
Sue Archer R…, Agent, Palm Harbor, FL
Tue Dec 22, 2009
Keisha hits on the most important subject that should be of interest to you. That is, will I still be able to rent the property with the new owner?

Contact your landlord, or their realtor, and see if they can facilitate a conversation so you understand what options you have once the home is officially sold. That includes your rights of termination of your rental agreement (assuming you don't have a lease) and the transfer of your security deposit. At the Sacramento county offices downtown, there are free legal advice resources to help you understand your rights. But I'd start by asking your landlord and their realtor.

And yes, you still need to pay your rent and keep the property in good condition as per the terms of your rental agreement.
Web Reference:  http://www.suearcher.com
0 votes
Ron Jeanniton, Agent, Plantation, FL
Tue Dec 22, 2009
You have a contract. Keep paying your rent.
0 votes
Keith Sorem, Agent, Glendale, CA
Mon Dec 21, 2009
The lease goes with the property, not the owner. Keep paying unless you want to be evicted.
0 votes
Keisha Mathe…, Agent, Elk Grove, CA
Mon Dec 21, 2009
As you can see, we are all pretty much in agreement with you are still obligated to the seller/landlord.

California tenant/landlord law states that you are still obligated to pay your landlord rent. In addition, your 60-day notice rights are not protected once the property goes into escrow. You, at that time, have only 30 days to vacate.

At this time you have knowledge that most tenants in your situation don't have. You KNOW that the home is being sold. Many tenants are being "taken", being told that everything is ok and paying rent towards a property which the borrower/landlord has already defaulted on.

If your landlord is communicating with you, find our if the current offer on the property is from an investor or if it will be owner-occupied. If you want to stay in the property, ask the landlord to advertise it as such if possible. That is often attractive to many investor buyers in the market right now.

Your landlord is responsible for giving the new owner/landlord a copy of your current lease agreement and turning over your deposit in escrow to the owner/landlord to ensure that you receive what's owed to you once you do leave.

If you find that the property is going to be owner-occupied, that's the time to give notice and vacate.

Hope that helps!

Keisha
0 votes
Jeff K, Home Buyer, Bristol, PA
Mon Dec 21, 2009
You still have a contract with your landlord, even if the house is being sold. So yes you'll still need to keep paying rent. But ... you do need to look after YOUR interests, as regards your security deposit. CA Law I think will likely help protect you in this regard but you need to know your rights asap. Any communication with your landlord should probably be in writing at this point, to avoid any misunderstandings. He or she is in trouble and people in trouble will do drastic things - like spend YOUR security deposit, which probably should have been in an escrow account. I'm sure that you see what I'm saying.

If your initial lease expired and you didn't sign a new one, then you are probably just on a "month-to-month" agreement. If that's so then you could just give 30 days notice and move. There aren't many other people looking to move in Jan/Feb, so you should be able to secure a good deal.

Take care! Happy holidays!

Jeff
0 votes
Dan Adler, Agent, Tucson, AZ
Mon Dec 21, 2009
The fact that the home you are renting is being sold does not release you from your lease agreement. You could potentially hurt your credit or have negative legal consequences if you stop paying rent. Contact a real estate attorney in your area and view your states "Landlord Tenant Act".
Dan Adler
The Dan Adler Team
0 votes
Bill Eckler, Agent, Venice, FL
Mon Dec 21, 2009
Hmmmmmm,

The fact that this property is being sold as a short sale or any other sale should not change your responsibility for paying rent. As long as you reside there the financial obligation still exists to the owner of the property.
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more