In the event of foreclosure of a home is the landlord allowed to collect money from the tenant?

Question:

rented a home from a woman who presented the house through a reality company as being avaialble for 12 month lease. Within the first week I moved in a mortgage loan collector came to the door, and said he had been to the property for several weeks trying to give notice, but the property was vacant. My landlord 2 weeks later came to me, and confirmed that the house was in the process of forclosure, and that my family, and I have to leave. Up front I gave her $1175.00 for security, and $1175.00 to the leasing company she listed the home through as first months rent counted to their comission ( I moved in the 10th of OCT and my prorate was to be paid in November). My landlord returned my security, and check for my 2nd month's rent uncashed, but I believe the reality company is also responsible for presenting me with a lease that was never valid, and should return the money I paid to them, and then they go after my lanlord for commiting fraud.

Answer:
It depends upon where you are located.

If the house is under foreclosure it is a legal proceeding and if the court has not issued an order assigning the rents to the court or to the mortgage holder then it would be payable to the landlord.

I would stay in the house as long as possible without paying rent to anyone. Once you have recouped your costs from the free rent then either move or contact the mortgage company. Maybe there is an opportunity to become a homeowner.

If either side provides a court order saying they are entitle to receive the rent then advise the party that you have prepaid X$ to the owner and her Realtor. And will vacate one it is either repaid or been compensated by free rent.

The mortgage holder will like the idea of someone occupying the house until they are ready to sell it. It is free protection for their property.

The landlord is actually required to pay any rents earned on their home to their lender, and the lender can allow you to stay during the foreclosure process.

I'd try to find out who their lender is and speak with their loss mitigation department about staying for a while if you need to.

The realty company really can't be expected to run credit checks on the landlords they list for all the time. Assuming you got to stay for the first month, you got what you paid for.

It depends on whether the foreclosure is just starting or just finished. I can't tell which on the facts. I'm inclined to think it was just filed and took the landlord by surprise.

Your lease is a transference of the right to occupy. Filing foreclosure doesn't cut that off, the final order does, so it matters whether they just filed or just got an order. If they just filed, then your lease is still valid. The foreclosure cuts off the rights of the owner, which would cut off the rights of the landlord, and would cut off any rights you have under the lease, but if they just filed, that's months away. The lender/plaintiff probably has the right to collect the rent (under your lease as it is, they can't demand more) until the order is final, and probably would prefer to collect a few grand than have it vacant.

If it was just filed and you want to stay, what you need to do is pay rent. Find out where it was filed and call the plaintiff's attorney and/or the court clerk and ask them what to do. You owe someone rent, but the court should give you a document saying who gets it. Probably the plaintiff, but you are entitled to an order so you can't be forced to pay twice.

In the event of foreclosure of a home is the landlord allowed to collect money from the tenant?

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