Renting a house up for foreclosure?
Question:
Answer:
Yes once the fourclosure goes thur...
Good time to see your legal advisor. You could find yourself separated from your belongings if sherriff changes the locks.
Depending upon the state and county you are in, it may be possible to compel the landlord to pay ALL your relocation expenses, as you have kept your payments up in good faith. The landlord is bound to keep his mortgage up to date if he is using the home as a rental unit, and since he has not, a case could be made that he defrauded you out of your home.
Check with the housing authorities in your city or county. Don't take this lying down!
And, you should STOP PAYMENTS right now! File a lawsuit against the landlord immediately. This will help hold-off the foreclosure proceedings as they apply to you. Don't wait! You can sue for breach of contract, as you had a lease, as well as several other things.
Okay, here's the reality: Your right to occupy under that contract evaporates when the owner's rights to the property terminate. Yes, you might be able to sue them, but if they're in foreclosure, good luck.
Your real problem is that you can't move before the foreclosure without breaking your lease, and afterward you might be given only a few days to move.
Now, what you need to do is find out who the Plaintiff is, who is foreclosing. There's a REALLY good chance that the mortgage they are foreclosing entitles them to collect the rent, so you should probably look into that. More than likely all they need to do is file a petition to the court, and the judge will issue an order that they are entitled to the rent directly from you, and you pay them instead of deadbeat landlord.
Now, if that goes well, you can probably get an agreement with them that says they will continue to honor your lease to its end, or at least a certain time after the foreclosure is final, so that you aren't in the position of being given 3 days to move once you wouldn't be breaking the lease by doing so.
An attorney might be a good move if the Plaintiff's attorneys aren't responsive.
You should probably keep paying rent and very quickly evaluate what you want to do with the current situation you are in.
If you decide to move out and rent somewhere else, then keep paying rent right now so that you can show your new landlord an on-time payment history. You don't want to make it look like you just stopped holding up your end of the lease agreement. However, you should find a place to live as quickly as possible, depending on how much time you have before the foreclosure process is completed on the property.
You can also try to purchase the property, either before the foreclosure, from the landlord, or after the foreclosure, from the new owner/bank. That way, you'll be able to keep living in the current property and then start creating some equity in a house you own. But in this case, the lender that you apply for the mortgage through will want to see that you've made your rent payments on time.
Just determine what your plans are, and if you would be able to qualify for a mortgage, and then find out how much time you have before the house is lost. Don't wait too long, because if the house is sold at sheriff sale, the new owner will be able to evict you -- especially if it is the bank that purchases the property back at the foreclosure auction.
Good luck.
ForeclosureFish
http://www.foreclosurefish.com/...
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