Landlord in foreclosure!! (real estate, renters, crime)

[laundrymistress]

I lost my house to foreclosure when my husband died. Pretty good reason right? Ok, it went into foreclosure and I found a rental. Well I have found a whole new bag of fun here. I found a townhouse to rent that worked for me and my son. I pay $900 a month to the landlord. Then I get served with foreclosure papers. His foreclosure papers. This is the scam, and it took me a while to figure this out; he collects the rent from both townhouses; $2000 a month. Does he pay his mortgage? Nooooo! Why would he do that? So I called the bank. Should we pay you the rent? No because he technically still owns the house. Ok, he hasn't paid a payment in 18 months, that's 36K, not bad? And its legal! The bank doesn't want the money? Seriously. I never dreamed of renting my house that was in foreclosure to people, and pocketing the rent! But no one care. I should have done it I guess, but I just don't think like that. I guess thats why people like me, widows with children will never make out. We don't try to scam the system. I think that this is the problem. The only reason I know about this at all is because he is trying to say that he is an owner/occupant. If he says he lives here he will get bailed out. White collar crime is not looked at the same. I'm thinking, boy poor Martha...

Any advice? Looks like I'm going to be evicted!!

[#Littledog]

That just sounds crazy! Can you get a lawyer? Or maybe call on of the news channels and they can turn it into a documentary... They'll blow the whole lid open on this one!

[115db]

Ive had that happen too, several years ago, here in Calif. Turns out the guy we'd been paying the rent to didnt even own the house, we had 30 days to get out....and had only lived there 3 months! Talk about having to scramble to find a place while re-packing everything we had just unpacked.
Sad thing is, it was my dream house, everything I ever wanted in that house. Not fun.

[BacktoNE]

Ugh, I feel for you! I remember hearing on the news a couple months ago that this was becoming a huge problem in Chicago and finally the sheriff just refused to deliver anymore eviction notices to tenants when their landlord was the one at fault. I don't know how it all played out as we never saw a follow up report.

If you can swing it, get in touch with a lawyer to see if there is any help available to you.

[crazyme4878]

Look for legal aid, they give free assistance to low-income families on a myriad of issues. Also see if there is a non-profit that works for renters' rights in your area (a Google search or the courthouse/legal aid might have an idea). Also, if your husband was in the Armed Services at one point, there is a possibility of getting legal help through them.

Good luck...someone needs to make sure this guy doesn't get away with it!

[43north87west]

Originally Posted by laundrymistress

I lost my house to foreclosure when my husband died. Pretty good reason right? Ok, it went into foreclosure and I found a rental. Well I have found a whole new bag of fun here. I found a townhouse to rent that worked for me and my son. I pay $900 a month to the landlord. Then I get served with foreclosure papers. His foreclosure papers. This is the scam, and it took me a while to figure this out; he collects the rent from both townhouses; $2000 a month. Does he pay his mortgage? Nooooo! Why would he do that? So I called the bank. Should we pay you the rent? No because he technically still owns the house. Ok, he hasn't paid a payment in 18 months, that's 36K, not bad? And its legal! The bank doesn't want the money? Seriously. I never dreamed of renting my house that was in foreclosure to people, and pocketing the rent! But no one care. I should have done it I guess, but I just don't think like that. I guess thats why people like me, widows with children will never make out. We don't try to scam the system. I think that this is the problem. The only reason I know about this at all is because he is trying to say that he is an owner/occupant. If he says he lives here he will get bailed out. White collar crime is not looked at the same. I'm thinking, boy poor Martha...

Any advice? Looks like I'm going to be evicted!!

I'm not sure why you say the landlord is going to get bailed out. Eighteen months in arrears, is clearly something that no bank would touch. Banks are negotiating loans with people who have exhibited some ability to pay, even if the amount is less on a monthly basis. At 18 months, your landlord is a deadbeat. Nobody is going to renegotiate that mortgage.

If the landlord still owns the house, then you have to keep paying rent so that you aren't evicted for nonpayment. Unfortunately, you'll never see where the money goes.

Some banks have been offering tenants of foreclosed properties, cash to move within usually 4-6 weeks, so they can auction the properties. I read somewhere that Bank of America offered a $2000 payment to tenants, to move within 30 days, although that was in the Chicagoland area. You might want to contact the bank and find out if they have such a payment available.

[karfar]

Originally Posted by laundrymistress

I lost my house to foreclosure when my husband died. Pretty good reason right? Ok, it went into foreclosure and I found a rental. Well I have found a whole new bag of fun here. I found a townhouse to rent that worked for me and my son. I pay $900 a month to the landlord. Then I get served with foreclosure papers. His foreclosure papers. This is the scam, and it took me a while to figure this out; he collects the rent from both townhouses; $2000 a month. Does he pay his mortgage? Nooooo! Why would he do that? So I called the bank. Should we pay you the rent? No because he technically still owns the house. Ok, he hasn't paid a payment in 18 months, that's 36K, not bad? And its legal! The bank doesn't want the money? Seriously. I never dreamed of renting my house that was in foreclosure to people, and pocketing the rent! But no one care. I should have done it I guess, but I just don't think like that. I guess thats why people like me, widows with children will never make out. We don't try to scam the system. I think that this is the problem. The only reason I know about this at all is because he is trying to say that he is an owner/occupant. If he says he lives here he will get bailed out. White collar crime is not looked at the same. I'm thinking, boy poor Martha...

Any advice? Looks like I'm going to be evicted!!

I'm a process server, this is nothing new. You have no idea how many tenants I have to serve. The tenants aren't at fault, it's the landlord. And I'll tell you this much, the tenants are grateful that I came along & served them the papers because at least NOW they know about it, the landlord never tells the tenants. Consider yourself lucky that you got advanced notice.

[laundrymistress]

The landlord rents the property to 2 responsible families that maintain it.
The landlord collects $2000/month rent.

As I look at this situation, it is the strangest thing for those of us who see things logically. I went to the courthouse to review the foreclosure file. There i find:

The landlord takes all the equity he can from the rental property.
The landlord defaults on the mortgage.
The bank starts foreclosure.
The lawyer for the bank files all the papers.
The landlord never responds to the bank.
The mortgage includes a 1-4 Family Mortgage Rider-Assignment of Rents allowing the bank to collect rents.
Tenant contacts the lawyer for the bank, asking for information on process and asks if rents should be sent to the bank.
The lawyer for the bank does not want the rent even though the bank is entitled to the money.
The tenant contacts the bank, asks why they wouldn't want the rent money? Could find no one who could answer this question.
Contacted the courthouse, referred back to the attorney for the bank.
Contacted the attorney for the bank, tenants are interested in purchasing the property. The attorney says contact the owner.
The tenant has a real estate agent contact the owner, does not want to sell the property.

Is this crazy or what?
The bank doesn't want their money??

[hankejp]

I think it goes that if you are so far in default, the bank won't take any payments unless it is a payment to get the mortgage back up to par. Otherwise the bank just continues to with the foreclosure process.

[laundrymistress]

the 1-4 family waiver that is in our landlords file is a document that is used by mortgages to collect rents when the landlord goes into default. It doesn't cure the default, it simply states that the lender is entitled to the rent and the borrower agrees to the assignment of rents. It does not stop the foreclosure process, just stops the crook from taking money that isn't really his to take. I am wondering why it isn't being enforced more?

http://www.freddiemac.com/uniform/do...te1-4Rider.doc

Shouldn't the money go to the lender if the landlord isn't paying his mortgage?

I say yes, and those who think that landlords should keep stealing from everyone should re-think why.

It should be a CRIME! I am paying my rent, and guess what? MY TAXES are bailing out the lenders who don't enforce their contracts!

I say, the banks are responsible for bailing thier own asses out! The rent is going somewhere, and its not doing anyone any good.

These landlords are criminals! And we are all paying for their greed.

Remember Martha? For pete's sake, here are some real crooks! And they will put the renters out on the street in a heartbeat!

Keep paying the landlords? NO WAY!!