landlord in pre-foreclosure
I just found out my landlord is in pre-foreclosure. I found the summons slipped under the door to my apartment the weekend I moved in. Comforting. And I had just paid a hefty brokers fee for the place. What does this mean for me as a tenant? Is my lease binding? Also, should I demand…
I just found out my landlord is in pre-foreclosure. I found the summons slipped under the door to my apartment the weekend I moved in. Comforting. And I had just paid a hefty brokers fee for the place. What does this mean for me as a tenant? Is my lease binding? Also, should I demand my brokers fee back? Thanks
Leave as quickly as you can. There is nothing you can do to recover your costs with the broker but get out and find another place to call home. Try craigslist or another free site but don’t feel safe there.
my absentee landlord received one of these, delivered to the apartment i’m in. i figured out pretty quickly that it was a result of the mortgage being switched from his original lender to a new lender – not at all valid. check into it, if you can.
http://www.tenant.net/phpBB2/index.php
everything you ever wanted to know about tenants rights.
I don’t hate you The What! I hear you as a voice in the wilderness!
Plus, you are wicked sexy when you throw the math around.
“I just found out my landlord is in pre-foreclosure. I found the summons slipped under the door to my apartment the weekend I moved in. Comforting. And I had just paid a hefty brokers fee for the place. What does this mean for me as a tenant? Is my lease binding? Also, should I demand my brokers fee back? Thanks”
As a Broker you can get your money back. Brokers have a thing called ‘Vicarious liability’. Tell the Broker to find you another apartment ASAP! Or you will contact the Dept of State and Small claim court. I know everyone hates The What but believe me I know about this subject.
http://en.wikipedia.org/wiki/Vicarious_liability
The What
Someday this war is gonna end….
“Pre-foreclosure is not foreclosure and therefore is essentially meaningless. Even in the event of actual foreclosure, your lease is still binding and the bank is responsible to honor the terms if takes over the property.”
Wrong wrong wrong. If a lender forecloses on the landlord, the leaseholds are rendered null and void. The original landlord has lost his/her right to give a leasehold. The new owner would have to go to court. Most likely a Holdover proceeding.
The is a new thing that has come up. Boyko ruling
Deutsche Bank Foreclosures Tossed Out of Ohio Federal Court – “They Own Nothing!â€
http://iamfacingforeclosure.com/blog/2007/11/12/deutsche-bank-foreclosures-tossed-out-of-ohio-federal-court-they-own-nothing/
This is huge!!! If lenders can’t prove they own the debt, the foreclosure process will be fucked up for some time.
The What
Someday this war is gonna end
Note: Make sure you Landlord is paying the Mortgage!
Contrary to what 10:47 says, if you have a market rate lease (not rent stabilized or rent controlled) the lender can probably terminate your lease if they forclose. You should check your lease. The section you need to look at is usually titled “Subordination”.
I was a couple days late on my mortgage payment once, and I got a pre-forclosure notice from my bank. Let your landlord know you have the paperwork, he might not even know there’s a problem.
Pre-foreclosure is not foreclosure and therefore is essentially meaningless. Even in the event of actual foreclosure, your lease is still binding and the bank is responsible to honor the terms if takes over the property.
Wouldnt worry too much until actual foreclosure proceedings take place. Even so I would definately be prepared to move at the end of my lease.