Tenants and foreclosure

[nsumner]

It is illegal for the landlord to come onto the property without your permission. YOu are still under the lease agreement. They cannot change the locks either. Read your lease, they are supposed to notify you and get access at reasnable times. Also, regarding the lockbox, your lease probably says that you will allow that to by installed during the last 30 days of your lease only. If you don't want it, you don't have to have it. The house will not sell as fast it's true because it won't be convenient for agents to get access to show it. Again, please read your lease.

[R.B.]

My lease agreement stated that the landlord/management company could put the lockbox. I think if the owner changes due to the sale of the property, the new owner has to honor the lease agreement. But if the house forecloses, then most of lease agreements terminate at the time of foreclosure. If the owner is trying to end the relationship with the management company, you should verify with the management company first. The owner may violate his/her agreement with the management company.

[hbjsc]

nolo.com

renters rights! great information.

I have learned alot going through this situation I am in!

[second_pancake]

Ok, I'm in the mortgage industry and so is my husband and we have been looking for a home for sale in which the owner will agree to a lease option and have yet to find one, so I think it's great that there are actually properties in the area where the owners are willing to do that. Now, onto the situation...

Whenever you enter into a lease agreement with the owner of a property and not a property management company (the later makes sure your rights are protected from any default the property may enter into based on an agreement they have signed with the owner), you need to very specifically layout what you are agreeing to to protect yourself. For instance, you might state that you will make payments to the owner on a monthly basis, however, you want to be on the bank's mailing list to receive any default notices (in FL, default notices are automatically sent certified mail to the property as well as to the owner) so that you are aware of any potential risk to your living situation. Then state in the agreement with the owner that if at any time the loan should go into a default situation, you will no longer make payments to the owner but directly to the bank instead, and for no more than the actual amount of the mortgage payment (this keeps the owner from receiving any type of overpayment he/she may have originally worked into the rent payment). In the event that you are doing a lease to own, you should also choose your own escrow holding company to hold any downpayment you may have originally paid to protect that money in the event that a default situation occurs. You can state that if at anytime the loan goes into default, not only do you start making payments directly to the bank, but that the owner forfeits any rights to his/her equity position at the end of the lease term. Meaning, if the agreed upon price of purchase compared to the home value meant that there was 20k worth of equity, the owner would not receive any of those proceeds because of the default, and subsequently the original agreed upon purchase price would not be reduced by that amount (20k reduction on the purchase price).

There, of course, are a ton of ways to work things to protect yourself. Just remember this, if the owner of the property has any problem with having you notified in case of default or paying the bank directly, chances are, he/she has full intention of pocketing your rent payments and letting the house go into foreclosure. Don't rent from them!

[dillansdaddy]

Spring, TX - We are faced with the same situation. Had a notice dropped off last week with no information except "Collections Dept" and an 888 number...So I called...It was a Mortgage Company. 2 days later the Landlord's husband called me and stated that yes, they were behind 3 months on the mortgage and are now going to try to short sale it. There is nothing in my lease that states anything about Landlord Default. Can we do anything? He offered for us not to pay Feb Rent and he would use the security deposit as the rent and let us out. But then what if I don't find suitable housing for my family within 30 days?

At A Loss...I don't even think the security deposit exists anymore anyway...Any thoughts or suggestions?

[derekv]

Dillansdaddy- get that in writing and use the security as the last months rent, that is the best offer you are going to get.

[Janeystrom]

Does my leasing agent have the right to
Show the property I'm leasing? I'm 6 months
Into a 12 month lease. The house has been
Listed for a short sale. Will I get my deposits
Back if the house sells on a short sale? I'm so
Frustrated. Please help in California

[loves2read]

you need to post in CA since laws there are likely different from here in TX