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The house we rent is in foreclosure - rent ?
by Anne (Arkansas)
on June 25, 2014 @16:04
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Hello - I'm a little confused as to what to do here. The owner of the home that we are renting had to file bankruptcy so our house was foreclosed on and sold at auction. We knew this was going to happen because the owner was very upfront all along about his financial problems. When all of this started the property manager stopped coming by and collecting the rent check. When I called him about it he said that the trustee told the owner that "legally he could no longer collect rent". First the property manager just told us to hold onto the checks, then he told me (via text) that he wouldn't be collecting rent anymore and to just use it when we have to move. We finally received the paperwork from the law firm that is representing the owner of the home and they are requiring proof of tenancy by submitting "recent checks showing we are up to date on rent payment". We were in complete compliance up until we were told to stop paying so I'm not sure what to do? We could provide those checks but should I also print out the text messages between the property manager and myself as proof we were told to not pay? We plan on being out within 30 days but our deadline to turn in the proof is tomorrow. Will the fact that we were told to hold the rent mean that they can evict us sooner than 30 days? Thanks for your help!
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Re: The house we rent is in foreclosure - rent ?
by Anonymous
on June 25, 2014 @16:10
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Also, sorry for posting a tenant question on here. I guess my actual question would be, will the old home owner get in trouble bc he told us to not pay rent? When I asked the property manager to sign something saying we were in compliance with our rental agreement he acted like he didn't want to sign anything for fear of getting in trouble. The home owner said flat out that he wouldn't sign anything.
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Re: The house we rent is in foreclosure - rent ?
by bob
on June 25, 2014 @16:24
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This is interesting.
There's a debt, and you seem no not be disputing that at all. The question I would have would be whose debt is it - the current or the former owner.
This absolutely should have been addressed at the closing, and the new owner should know that answer. From the wording of the letter, that does not seem to be true.
And from the previous Landlord you were told that he cant legally collect rent.
So I would share the text with the new owner and explain that you made attempts to pay but were turned away, and that you are willing to pay the proper party the balance due.
I suppose the million dollar question is do you have the money?
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Re: The house we rent is in foreclosure - rent ?
by John Brayton (Massachusetts)
on June 25, 2014 @16:37
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The best you can do is send screenshots or printouts of the text messages along with documentation that you had been paying up until the foreclosure.
I doubt you are at risk of being thrown out of the house within the next 30 days.
I don't think there is anything that will get the old home owner or property manager in trouble. My guess is that the bank owned the house for some period of time, and that banks either legally can't or don't bother to collect rent on foreclosed homes. But this is just a guess based on neither the prior owner nor the new owner claiming that you owe them rent.
John
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Re: The house we rent is in foreclosure - rent ?
by OK-LL
on June 25, 2014 @16:55
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Once the owner went into bankruptcy, the current rent was subject to claims of the bankruptcy trustee. Once the property was released from the bankruptcy estate to allow the foreclosure the current rent became payable to the owner again. Once the foreclosure was complete, the current rent became payable to the buyer at foreclosure sale (either bank or 3rd party). But it is not up to you to discover who all these parties are. You were correct in putting the rent aside until a claim is made for it. If you have not received any notice to pay rent to someone along with legitimate proof that person/entity owns the property, you were not required to pay anyone. Now that the owner has identified himself, once you receive instructions for rent payment, you will pay the rent due to him from the beginning of his ownership to today and you should be fine. He is not entitled to money owed prior to his ownership. If you refuse to pay his legitimate demand for rent, he can file to evict you for non-payment of rent. And no, none of this will adversely affect the previous owner -- and safeguarding the previous owner is not your concern and should not be your goal.
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