We are renting out a home and we've noticed plenty of letters being mailed to our home for the landlord. More than ever AND notices from the post office..we're assuming they are certified mail from banks, etc.
My landlord has said nothing. When we did follow up with them a few months ago..they said they are in the processes of re-fi'ing..they've been telling us that for a while now.
I looked up the status on the house and I read it was for "preforeclosure". What do we do now? Suggestions?
My husband spoke with our landlord and he says that they are working with a lawyer to get this all settled out. Trying to re-fi, modify, etc. ..and we shouldn't be concerned. However, they asked that we had our landlord to our PGE bill, but PGE stated they could not do that. I don't know what we're going to do next. It just seems like a hassle right now.
Start looking now for a new place. When this happened to us we had 30 days to vacate the apartment. SUCKED!!!! But we found a great place to move to. Really start looking for a new place.
Start looking for another place to live...like ASAP!
~This happened to my sister and BIL...they had no clue until the bank came and nailed something to their door that had the time when the public auction would take place...they were given 30 days notice and that was that...talk about crappy?!
You find another home! I've known a few cases where a house is foreclosed, and the renters were given little to no warning to GET OUT ASAP by the bank. This has happened to acquaintances and friends of mine, so they are stories I've heard firsthand. Start planning before this happens, I say. the person below said they were given 30 days, that is short, BUT I've heard 2 weeks and for one family, ONE week....
I also find it odd that you receive your landlord's mail...
Let me tell you a story about some friends of mine who were renting a house that went into foreclosure.
They came home from work one day with the locks changed, and all of THEIR stuff locked inside by the Sheriffs dept.
The homeowner didn't let them know what was happening and just let the house go. He continued to collect their rent which I'm sure he pocketed.
It took them TWO months to get their stuff from the bank, it was seized property since it was in the house.
FIND A NEW PLACE A.S.AP!
Look for a new place, ASAP.
I want to echo the opinion of others and recommend that you start looking for another place to live and also DO call the attorneys and banks listed on the envelopes and tell them you are renting, ask them what their timing of foreclosure is, what is going to happen etc.
I also want to make sure to recommend that you re-read your lease and figure out what the expiration of the lease term is. You don't want to leave early and default on your lease. Even if the house is in pre-foreclosure or even foreclosure, it doesn't forgive your lease obligation so be cautious of that and stay until the end of the lease or negotiate a lease amendment to shorten the term. Good luck.
Call the bank listed on the outside of the letters that are coming to the house (or if you don't see anything listed, call a Realtor and ask them to look it up for you - the lender will be listed as part of the public records). Call and ask what the current status is on the house, and timing, as well as what you, the renter, should do. A lot of times in California, the bank will give you "cash for keys" - in other words, if you agree to move by X date, they will give you money (usually upwards of $10,000 in the Bay Area) to help with your relocation, deposit, etc. You may even find that the home has already been foreclosed upon - this happened to our neighbors! They noticed a ton of letters coming to the house, the LL gave them the old story about refinancing, but they checked into it and found that the foreclosure had happened a few months before! The guys were told by the bank that they should obviously stop paying the (former) Landlord and save the money. The bank was in no position to be a Landlord or collect rent, but they told our neighbors that they weren't planning on putting the house up for sale anytime soon (too much inventory in the area already), and that they could just stay there if they wanted for the time being. Soooo... our neighbors lived there rent-free for more than a year! By the time they actually DID have to move, the bank gave them cash for keys, and they made a huge down-payment on a home (because they'd been saving their rent money for a whole year, plus cash for keys!). Anyway, it worked out great for them. Arm yourself with information directly from the bank, then decide what to do. Good luck!
this happened to us last year. I would call the lawyer or bank listed on the outside of the letter. do not open the letter. but call the bank/lawyer and say I am renting the house at "X" adn see all of these forms coming. what is going on. they will tell you if it is in foreclosure. but to give you some peace of mind. you won't be evicted if you follow through. they have to give you notice as renters this is why its important to call and let them know you are renters. you have rights. expecially if you have a lease. email me if you want more info on what happened to us and what the bank did for us
In the state of CA you cannot be evicted until the end of your lease OR at least 90 days notice. Different areas have different rules (in LA for example you cannot be evicted due to rent control). Once you receive a notice of foreclosure, contact the institution that has foreclosed and ask whom to send the rent to. You must continue paying rent to your landlord until foreclosure. He may be withholding payments on the home to get the bank to work with him.
As the Magic 8 Ball says: Outcome does not look good.
Better to be pro-active and find another place--the sooner the better.
Good luck!
Tenants have rights at foreclosure. There is a Federal Law regarding Protecting Tenants at Foreclosure, in fact. You have the right to stay in the home through the balance of your lease if the person who buys it intends to lease it out again (or if no one buys it and it stays with the Bank). If the person who buys it is an owner-occupant, then you can stay for 30 days from the date of their purchase closing.
My husband and I teach continuing education to attorneys Nationally. It's not necessary for you to look for another home at this time.
The landlord cannot refinance after they are delinquent (and if you're getting letters, I guarantee they are behind). Also DO NOT answer the letters or contact the people sending them. When a home gets coded as delinquent, all the slimy "stop foreclosure for a fee" people come out of the woodwork. No. And, the bank won't talk to you about the loan on the property anyway. You aren't on the loan or an authorized 3rd party. The bank will contact you upon the foreclosure sale to help you.
Feel free to contact me with more questions. I help people in your situation and the owners of these properties, for a living, at no cost to you. (I'm in Texas.)
C.
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You will have 90 days notice if you are renting month to month. If you have a lease, then you can't be kicked out until the end of your lease. This article has more info on that. http://realestate.msn.com/article.aspx?cp-documentid=2278.... Maybe you should sign a 2 year lease agreement.....:-)
I would start hunting for a nother place to live now. Who knows how long the process for refiling will take but you could get little to no warning about needing to move out.
Do you have a renting contract with this person? If so what does it say in the contract about when renew time is, or how much notice you have to give before moving out/stop paying that rent.
I would start getting your ducks in a row, look at renters contract, figure out what to do from there, find a new place, give notice and move.
Sadly to say if the landlord does get to keep his house who's to say that you will not be in this same situation a year from now, all it takes is missed payments for the whole thing to happen again.
I would talk to a lawyer. One of my husband's friends was told to keep the rent money in an account instead of paying the landlord. I am not a lawyer and do not understand this logic, since your lease agreement is with the landlord (not the bank) and i would think this could hurt the renters' credit. Maybe when it goes to foreclosure instead of pre-forclosure makes the difference since the landlord no longer has rights to the property.
