Does tenant pay rent in foreclosing home - Posted by Jan

Real Estate Investing Real Estate Law
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Posted by James - Michigan Investor on February 05, 2009 at 08:01:11:

Except in Michigan where a lot of people are losing their houses/rentals.

So the judges think it is ok that when you evict a tenant for nonpayment AND you are losing the house, they give the tenants:

  1. Normal 10 days after court,
    a.no money judgement
  2. 30 days instead of the normal 10 (at this point it will be roughly45 days to evict then…)
  3. A hard lecture to the landlord in court (no, not me! lol)

James

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Does tenant pay rent in foreclosing home - Posted by Jan

Posted by Jan on January 29, 2009 at 06:17:23:

Should a tenant continue to pay rent in a home that has gone into foreclosure in Colorado? Lease is up in June, sale date May. Tenant afraid of losing deposit.

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Re: Does tenant pay rent in foreclosing home - Posted by Natalie-VA

Posted by Natalie-VA on January 30, 2009 at 13:47:58:

Stop by your local evictions court and see if they have a policy in place to pay rent to the court instead of the landlord. Then, if the landlord doesn’t pursue it, maybe you can get it back. Don’t count on your security deposit being returned. If your landlord is not paying his lender, he’s probably not going to pay you back either. You could file a claim against him if he doesn’t pay you back, but that doesn’t mean you’ll be able to collect.

If your local evictions court doesn’t have a process in place, check with a local attorney to see what other options you have. I hate to see you paying rent to a landlord who pockets it without paying the mortgage.

–Natalie

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Depends - Posted by Rich-CA

Posted by Rich-CA on January 29, 2009 at 19:19:03:

If you want the answer that comes from doing what you have agreed to regardless of other people’s actions, you already know that answer. I assume you are not interested in doing the right thing and abiding by the agreement you made (the May and June rents should go to the owner at the time, however).

My understanding is that the condition of the agreement between the owner and his or her lender does not relieve a tenant of their obligations under the lease. Its very likely that you would be able to slide under the radar on this if that is what you want. Its likely that the owner will not have time to pursue you, but that does not mean they have the right to do that.