Re: foreclosure tenants - Landlord Forum thread 202411

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

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

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Re: foreclosure tenants by Anonymous on June 1, 2010 @19:51

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Who says the papers were mailed to you at that address? You get your mortgage bills there? I think you were served in hand there, only it was your tenants who either were, or found the papers stuffed in their door. Also, tenants, if known to the mortgage company, MUST be given notice of the foreclosure action, so maybe your mortgage company sent THEM notice. Why are you so sure that everything was in your name? There were strong protections for tenants put into place after this foreclosure thing left tenants homeless.

From Nolo law:

Suing the Original Landlord

If a tenant can prove that the original landlord failed to disclose that a foreclosure was imminent, amounting to fraud, the tenant can sue the landlord for monetary damages -- the cost to the tenant of moving and any increased rent. (To learn how to sue for damages in small claims court, see Nolo's Small Claims Court area.) However, the tenant would still have to move out of the rental unit, which is not an ideal situation for most tenants.

When Does a Landlord Have to Disclose a Possible Foreclosure?

Landlords are under a duty to disclose material information that any tenant would want to know when considering whether to sign a lease. Is the possibility of foreclosure something that the landlord should have disclosed to any prospective tenant? The more likely it was that foreclosure would happen (for example, the landlord has already received notice of foreclosure), the more likely it is that the landlord should have disclosed the possibility of foreclosure.

Re: foreclosure tenants by Anonymous on June 1, 2010 @19:56	[ Reply ]

The OP was notified of the foreclosure AFTER the lease was signed.

Re: foreclosure tenants by Anonymous on June 1, 2010 @22:33	[ Reply ]

they knew it was coming, they got calls every day. It is pretty black and white. Why do you think they modified the law to preserve tenants rights in these situations? Because too many LL's were taking advantage of the bankruptcy. One cannot benefit from the fruits of this type of transaction under the new law and the tenants are not going anywhere--they are protected by federal law for the statutory period. When you sue them, the court is going to ask where the rent money is going and may notice the mortgage company as a party in interest. BAD IDEA to sue them.