End of lease/Foreclosure question (for sale, rental, condo) - New Jersey (NJ) - City-Data Forum

Flashback124 · 05-16-2018, 06:17 PM

Thank you in advance for any advice about this ongoing dispute with our landlord. I had to go to landlord/tenant court to evict a sub-tenant last year, so I thought I knew a lot about this, but the Statutes can seem vague to me!

We've been renting a single-family house for three years, with our current lease up June 30th. Since October, our landlord has told us that someone from the Bank needs to come through to look at the rental every so often to take pictures and measurements. I was happy to help, but it became clear to that something fishy was up, and we learned that the Bank had found an investor to buy the house.

Then, out of nowhere, we get a letter saying she was giving the deed to the house to Bank, and that they would be locking us out in a month, on May 15th. (She told us we didn't have to pay May rent and that she would send the security deposit back in full.) We realized she was heading for foreclosure (deed in lieu) and I checked the Deed Office daily to see if it had gone through (still hasn't). Thankfully, we realized this was an empty threat (and almost certainly a lie when it came to speaking for the Bank) and told her we weren't leaving. The investor would only buy a vacant house from the Bank.

She flips out, basically says she'd be keeping our Security Deposit, and still says the bank might lock us out. Then we get an icy non-renewal letter that states she will be changing the locks the second our lease is up.

From what I can tell, she can't force us to leave just because our lease is up. I believe, even then, she needs "Good cause" (non-payment, her moving back in personally, etc). Also, we know she never complied with any of the Security Deposit notices/interest payments.

HOWEVER, I also see a law that says if we "Hold Over" and our Rent money is not accepted, we can be charged Double Rent.

Does anyone know when one Law ends and the other kicks in? What's the best way to transition to a "month-to month" if it's contested? Thank you for reading and any advice at all! This is a great Board! All this is nothing if not interesting...

Kiru · 05-16-2018, 06:30 PM

I would assume once it’s foreclosed on and the bank owns it, they can then go through eviction processes to get you out. Or they may just pay you to leave.

Flashback124 · 05-17-2018, 01:37 PM

Thanks for that! That was sort of what I was thinking. Still, from what I can tell, neither foreclosure or the end of a lease counts as "Good Cause" for an Eviction. I'm thinking there would have to be something else. But again, we're not sure. Thanks!

Informed Info · 05-17-2018, 07:02 PM

Quote:

Originally Posted by Flashback124

Thanks for that! That was sort of what I was thinking. Still, from what I can tell, neither foreclosure or the end of a lease counts as "Good Cause" for an Eviction. I'm thinking there would have to be something else. But again, we're not sure. Thanks!

If you want to stay? Don't stop paying the rent. Find out exactly where to send your rent check to & make sure it gets there. Certified mail would be your best bet.

I say this because I have seen folks advised to stop paying their rent once they find out their rental is in foreclosure.

You might have to leave at the end of your lease if the new owner wants to move in/owner-occupy, and there are laws for that. Minimum of six months the new owner would have to live in the property or would owe you 3x the rent.

I think you have to be given 60 days notice in case the buyer wants to owner-occupy.

Good luck!

Blue biker · 05-26-2018, 01:18 PM

I knew someone who about 20 some years ago was living in a house getting foreclosed on. I think they stopped paying rent, (if the landlord didn't have money to pay for the mortgage, how were they going to pay for an attorney??). Regardless, they were there for about 4 yrs or so and the bank paid them quite a bit of money to relocate.

midnight_thunder · 05-30-2018, 01:23 PM

You are right, you cannot be evicted without cause, except for a few exceptions that do not apply yet. Once your lease is up, if you are not offered a 'Notice to Quit' and a 'Notice of Rent Increase', then the tenancy continues on a month to month basis. You are not a holdover tenant, and those rules do not apply in this case. She cannot lock you out; only a Sheriff can lock a tenant out. If your landlord tries to, she is in BIG trouble (damages to you, criminal repercussions, etc.).

Do not fall for your landlord's threats. She must offer a Notice to Quit and Notice of Rent Increase on 60 days' notice (or 30 days if you are already month to month), starting from the 1st of the month. Just keep paying rent, and follow up on the status of who owns the property.

Flashback124 · 05-31-2018, 09:14 PM

Biker, Thunder, Info (great name btw), Thank you all so much for your responses. Just after my original posting, we did get a notice of non-renewal (once again, it didn't give a reason or
cite cause), so it came about 45 days before the lease ends. So we've still got to figure out if we're protected under the anti-eviction act or hosed under the holdover law....

Also in today's letter, a demand to provide her lawyer with the key by June 1st, which is literally the next day. (We had to change it when we had our former sub-tenant evicted, and the landlady was informed the whole time, and we sent her a copy I guess she lost).

So she's desperate to get us out ASAP. It turns out she just brought a house out of state in cash, just before the foreclosure started on our house. Something fishy.

midnight_thunder · 06-01-2018, 08:25 AM

Quote:

Originally Posted by Flashback124

Biker, Thunder, Info (great name btw), Thank you all so much for your responses. Just after my original posting, we did get a notice of non-renewal (once again, it didn't give a reason or
cite cause), so it came about 45 days before the lease ends. So we've still got to figure out if we're protected under the anti-eviction act or hosed under the holdover law....

Also in today's letter, a demand to provide her lawyer with the key by June 1st, which is literally the next day. (We had to change it when we had our former sub-tenant evicted, and the landlady was informed the whole time, and we sent her a copy I guess she lost).

So she's desperate to get us out ASAP. It turns out she just brought a house out of state in cash, just before the foreclosure started on our house. Something fishy.

If the lease is not over yet, she must send to you a Notice to Quit and a Notice of Rent Increase on 60 days notice. Not 45. You are not a holdover, and under these circumstances you wont be one. Keep paying normal rent, don't leave, wait for them to sue you, and tell your story to the judge. Of course, if an attorney actually is involved, I highly doubt they'd be foolish enough to sue you when the landlord has failed to give the proper notices.

EDIT: If she is desperate to get you out, ask her for money to leave. Ask for 3 months' rent.

Informed Info · 06-01-2018, 08:40 PM

Quote:

Originally Posted by Flashback124

So she's desperate to get us out ASAP. It turns out she just brought a house out of state in cash, just before the foreclosure started on our house. Something fishy.

Don't waste your time trying to figure that out b/c it will drive you nuts.

I bought a property about 10 years ago that had started off in foreclosure, but the owner claimed bankruptcy while in foreclosure, which stalled the foreclosure process. I wasn't involved until the property was up for sale - as part of the bankruptcy. That gets sticky (with the trustee, etc.) & is time consuming.

He had two brand new Cadillacs parked in his driveway (with the temp tags in the rear windows) AND had bought a condo in the same town.

How in the world?