foreclosure tenants - Landlord Forum thread 202405

foreclosure tenants by Lynn (MN) on June 1, 2010 @18:46

In November 2009 we stopped making payment on our rental property do to me losing my job. In April we signed a 6month lease with a renter. On May 19th we got foreclosure papers int he mail. The place needs to be vacated in February 2011, well after the 6 month lease is over. Papers were served to us in our name and the tenants opened this so they foun out about the foreclosure. 1) they opened our mail 2) they want us to cut the rent in half or they wont pay at all. What should I do

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Re: foreclosure tenants by Anonymous on June 1, 2010 @19:07	[ Reply ]

You had to know that a foreclosure action was imminent. To begin with, you would have received letters starting at three months and continuing on until now. You had to have calls in that vein. You rented a property that you are not absolutely sure you will have ownership or control of in six months. Even if the lease is up in Feb, your bank can and will petition for the rents. One of the FIRST questions they ask is if it is a primary residence and if it is a rental they accelerate and go for the rentals. Your tenants should not have done that; you can take that up with them, but at least they know now. To not tell them was not cool--you were hoping for two to six more months of gravy off the back of the tenants and bank while the tenants might have to vacate after three, depending on how fast the bank acts. You will not get your rent after this goes to court. You will be asked about knowing about this when you made the contract. I am sorry, this can be viewed as nothing more than a last ditch gravy train ride. You dealt in bad faith, so it appears, regarding the tenants legal rights in the property. Your rights are subordinate to the banks so you can't deliver what you promised. Soo my bet is that your bank accelerates as you do not have the same rights in your rental property as a primary residence and that the other Feb date will be vacated by the Court and that the rents will go to the mortgage co.

Re: foreclosure tenants by Anonymous on June 1, 2010 @19:14	[ Reply ]

Landlords in foreclosure continue to collect rent while failing to pay the mortgage. I would say to take half the rent and let the bank take all the loss.

Re: foreclosure tenants by Anonymous on June 1, 2010 @19:26

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I'll also opt to cut the rent in half. In addition, I would send an email stating so and include the fact that you don't appreciate them opening your letters and not to do so in the future.

If they respond back with a promise not to, then you would have something on them now because opening a letter is a federal offense.

http://www.law.cornell.edu/uscode/18/1702.html

Re: foreclosure tenants

Re: foreclosure tenants by Anonymous on June 1, 2010 @19:52	[ Reply ]

IMO, they still have a valid lease with you to pay the full rent. If they don't pay the full amount issue a 3 day pay or quit notice right away. You are still the owner of the property. Call the Post Office and ask what kind of issue opening someone else's mail is. Write your lender and have them correct the mailing address on all future correspondence.

Re: foreclosure tenants by Anonymous on June 1, 2010 @19:59	[ Reply ]

usually when papers are served the nature of the action is right there in black and white. They looked at the papers. They were not in an envelope. They were folded in thirds and served in hand to your tenants, because your mortgage company was trying to serve you. So, really, they just looked at what the sheriff gave to them. True foreclosure papers are served in hand. Pre-foreclosure comes in the mail. What should you do? See an attorney and they have the right to move out in about three months. They probably will be advised to pay rent into a court escrow. I would apologize to them, I bet they are livid.Wouldnt you be?

Re: foreclosure tenants by Anonymous on June 1, 2010 @20:30	[ Reply ]

maybe I should have given more info. We only have the rental because we were unable to sell it. We have taken a loss on it every month for 4 years. With me out of work the only way to make the mortgage payment on the home we live in is the rental income. Without that we would lose both properties. It was always our hope that I would get back to work and we could refinance. The sheriffs sale is in August and then we have a 6 month redemption period. So the renters can stay until February 2011 if they want, but there lease is up in November 2010. We specifically signed a six month lease so we would not have to boot any one out in the middle of there lease. The renters did not have to move in, in fact we turned down many who wanted a year lease. If we reduced the rent we would lose our current home, if we reduced the rent and a few months down the road I found work and we refinanced we would still be screwed. So we are not trying to take advantage of anyone. We are just trying to do the right thing keep our home and hopefully keep the rental.We are keeping our lease agreement and not making a profit. Shouldn't the tenants have to keep there end? They are not out anything, we are.

Re: foreclosure tenants

Re: foreclosure tenants by OK-LL on June 1, 2010 @21:02	[ Reply ]

You are the current owner of the house and you are in a lease agreement with the tenant. Either they pay the amount required under the lease or you take them to small claims for possession and damages, including lost rent and court costs. Don't let them get away with this. Any number of things may happen between now and the Sheriff's sale and regardless, the 6-month lease is not impacted by the foreclosure, since (1) the lease term is expired before the vacating date, (2) under the new law the lease will run it's course if the bank acquires the property in foreclosure and (3) any other buyer must provide 60-day notice to vacate to curtail the lease. Collect your full rent or evict and find a new M2M tenant.

Re: foreclosure tenants by Ken (New York) on June 1, 2010 @21:04	[ Reply ]

The tenant received notice due to them living in the property being foreclosed,they did not read your mail,the bank has to notify them.Tell them full rent or move and get a new tenant.They pay for a month they get a month,they are not out anything,no guarantees when you are a tenant

Re: foreclosure tenants by Anonymous on June 3, 2010 @00:14	[ Reply ]

One of american dreams is to freely open other people��s mails.