Renting a house thats in foreclosure

[ptroika2000]

We are renting a house in foreclosure in Washington State and are on a month to month contract. The Landlord owes us the last months rent of $2,000 and the security deposit of $1,000 which they have said they do not have and don't think they have to pay us back. We were told by their bank, a real estate company and read the Landlord Tenant Act for Washington State and found that if we know that the Landlord has no way to reimburse us for moneys owed, we can live in the house until all moneys are used up. There is also a new law pertaining to the New Owners of a Bank Auction Sale too: http://www.nlihc.org/doc/Sample-Notice-for-All-Tenants.pdf (broken link)

[valleyboy_1]

I'm sick of people trying to protect the homeowners in situations like this. How is it fair to the tenant that they sign a contract thinking that will have the home secure throughout the terms of the contract, just to find out 3 months later in the midst of the contract that they will be forced out because the landlord is pocketing the money? I would advise the tenants not to pay the idiot anything either. There should be laws that will imprison anyone who attempts to do this. The landlord had no intentions on paying the mortgage and I believe that it is the renters EVERY RIGHT AND DAMN BUSINESS to know what the hell is going on with the home, especially if it's in foreclosure and the landlord wants to continue to collect rent. Since there's a notice posted on the door, you have a duty, and responsibility to tell me what's going on, or you will not be collecting rent from me. That's the attitude I would have. I'm tired of people making it seems like the renter just think they can live rent free because of the foreclosure. Stop feeling sorry for these scammy a$$ landlords who don't care about renters and there families and just looking to take there money, lose the house and run like the thieves they are. If i was your sister, I will sue them for everything, and then show up at there place of resident at odd hours everyday for the rest of there lives. Put a little fear in they hearts, and I guarantee you they won't do it again.

[valleyboy_1]

it's illegal because if you defaulted on your mortgage, and the home is in foreclosure and you have no intentions on keeping it, why the hell are you putting a tenant in it? The answer: to collect "something" off the house before you lose it. Well that "Something" belongs to the mortgage company or bank, NOT YOU! That's how it's ILLEGAL. So stop asking dumb a$$ questions!

[2bindenver]

First, the owner has a contract with the lender. Second, the tenant has a contract with the owner. The second contract (lease) is not subject to the first (mortgage) not being in default.

The first breech has nothing to do with the second breech.

To sue people who have nothing???? I did that once. Tenant lost his lease then his restaurant business and I spent $14,000 to get a $21,000 judgment.

When you are in a hole, you should stop digging.

Your Honor, I rented this house and the owner stopped paying the mortgage, so I stopped paying them.

Your Honor, I was trying a loan modification where the back held my payments in for three months before they gave me a permanent modification. But I couldn't keep up the payments because the tenant did not pay his rent.

[plaidmom]

Originally Posted by 2bindenver

First, the owner has a contract with the lender. Second, the tenant has a contract with the owner. The second contract (lease) is not subject to the first (mortgage) not being in default.

The first breech has nothing to do with the second breech.

Unfortunately I think we have a case where the laws are not keeping up the the (economic) reality of the times.

"Back in the Day" landlords were usually regarded as "people of means" who, generally, had assests, good common business sense and could be counted on to honor their obligations.

With the current housing market, we are seeing many "accidental" landlords (as I like to call them). People who are undercapitalized and who are renting out "their" (and I use that word with reservation) homes out of fear and desperation, rather than as a solid business decision.

I remember reading an article where one attorney advised his clients (the renters) to put their rent money into some sort of an "escrow" account. In other words, the renters situation didn't change and (presumably) the money was held until the house went through foreclosure, the lease ended, and the renters got their security deposit back (and the bank got at least some of their mortgage money). It seems like a fair system to me.

I know that ~some~ states already require that security deposits be placed in an escrow account. I think that's also a very solid idea and should be adopted nationally.

I'd also like to see the rent-skimming laws expanded and the punishment increased. People who collect rent on property they do not own outright, without intention of repaying the mortgage, belong in jail. It's fraud and it's theft.