Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
That's incorrect. Renters who have paid on time are being evicted everywhere because the landlords have failed to pay the mortgage.
That doesn't make my statement incorrect. I said AS LONG AS you can stay in the place you rented.... If they are being evicted, clearly they can't stay.
But that goes back to my question. Are not tenants protected in this instance? I am fairly sure that in NJ, if there is a transfer of ownership of a rented property, any new owner has to allow the tenant to live out the term of the lease, as long as they abide by the terms, (which would include paying the rent). That statement is in the standard form of lease I use. (Not that I do a lot of leases. Less than 10 in my 7 years.) Is it differrent in other states? Or is there some sort of exception for banks that foreclose?
Here's what I'm going to do in the next place I rent.
I will add a clause to the contract that states: "This lease is terminated on the day that a notice of foreclosure is recorded with the county for the subject parcel. The landlord is required to refund any deposit paid, last months rent paid, and early termination fees to the tenant as goverened by the applicable section in this contract."
I'm thinking a landlord wouldn't agree to that, would they?
In all honesty, renters are not empowered. We don't write contracts, we sign them. Landlords get to call all the shots. Yes, I can mark them up, but chances are, the landlords will say no. If I want a roof over my head, I have to agree to the contracts that the landlords write.
The one recourse we renters have is to refuse to pay rent. Whether right or wrong, refusing to pay rent is our way of exerting our muscle. Attorneys and the court system are beyond the reach of most renters.
Here's what I'm going to do in the next place I rent.
I will add a clause to the contract that states: "This lease is terminated on the day that a notice of foreclosure is recorded with the county for the subject parcel. The landlord is required to refund any deposit paid, last months rent paid, and early termination fees to the tenant as goverened by the applicable section in this contract."
I'm thinking a landlord wouldn't agree to that, would they?
In all honesty, renters are not empowered. We don't write contracts, we sign them. Landlords get to call all the shots. Yes, I can mark them up, but chances are, the landlords will say no. If I want a roof over my head, I have to agree to the contracts that the landlords write.
The one recourse we renters have is to refuse to pay rent. Whether right or wrong, refusing to pay rent is our way of exerting our muscle. Attorneys and the court system are beyond the reach of most renters.
Make sure it also says that you will move out on that day. That way you aren't trying to live there for free.
Renters are more empowered than you seem to think. Just asnk any landlord who's ever tried to evict a non paying tenant, or a tenant that causes a disturbance to other tenants, or damages the property.
But that's not the point of this thread. I'll happilly discuss it with you in another.
Are not tenants protected in this instance? I am fairly sure that in NJ, if there is a transfer of ownership of a rented property, any new owner has to allow the tenant to live out the term of the lease, as long as they abide by the terms, (which would include paying the rent). That statement is in the standard form of lease I use. (Not that I do a lot of leases. Less than 10 in my 7 years.) Is it differrent in other states? Or is there some sort of exception for banks that foreclose?
Yes, there is an exception for banks IF the bank was there before the tenant. It is a question of priority, which in most cases means which was prior in time.
When a bank records their mortgage, generally speaking, they have the right to foreclose and get the property back in the same condition it was in when the mortgage was recorded (except for anything subsequent that the lender consents or subordinates their lien to). When a tenant comes in later and signs a lease, the tenant is taking possession subject to the mortgage, and if the mortgage is foreclosed it can wipe out the lease (and anything else that came after the mortgage).
If the lease was there before the mortgage, then it is the opposite, because the lender takes their mortgage subject to everything that pre-dates the mortgage.
The reason this is different from any other transfer of the property is that a buyer takes the property subject to everything that already affects the property, which would include the lease.
Make sure it also says that you will move out on that day. That way you aren't trying to live there for free.
Why would a tenant to agree to get kicked out without notice? (The tenant has no advance notice of the foreclosure notice being listed with the county.) And where are they supposed to live? Tenants can't find apartments/house rentals on 1 day notice - they are either forced to live in motels or be homeless on the street.
The purpose of the lease terminating upon notice of foreclosure is to allow the tenant to vacate the property and find another place to live without being obligated to pay rent for the place they already signed the lease for.
If the tenant wished to continue living there after the notice of forelcosure, he could sign a new lease understanding that it would only be for a short while. Or the landlord could evict him subject to the rules of the state.
And this is exactly the point of this thread - the OP decided to vacate her place immediately, but unless she correctly terminated the lease, she could be held responsible for rent payments even though she was not occupying the property.
Why would a tenant to agree to get kicked out without notice?
Why would a landlord agree to let a tenant live in the house for free? In representing tenants I have never had a problem negotiating leases. You often don't get everything you ask for, but your almost certainly won't get something unreasonable such as the right to live in the house without paying rent.
Why would a landlord agree to let a tenant live in the house for free? In representing tenants I have never had a problem negotiating leases. You often don't get everything you ask for, but your almost certainly won't get something unreasonable such as the right to live in the house without paying rent.
Terminating the lease doesn't give the option for the renter to live there for free. It means that a new lease needs to be signed or the tenant must vacate the property.
Of all people, Austin, you surely should know that you can't occupy a place for free simply because your lease has been terminated. You either sign a new lease or you vacate the property.
As a contracts person, do you agree that the lease is still in effect even if you vacate the property? So in the original posters case, her lease was still in effect (and she is still required pay rent up to the day of foreclousre) even though they found a new place and moved away? Unless she cancelled her lease in accordance with the lease agreement, my understanding is it is still in effect. Perhaps the lease has an abandonment clause, but certainly she would be required to pay termination fees if that is the case.
Again, remember what we are talking about: The tenant needs some protecting against the their rental home from being foreclosed and them being kicked out on the street without prior notice. This has been happening frequently and is very frustrating to the tenants.
In many places (my city is one), you are required to pay first month, last month, and one month deposit. It can be assumed you won't get deposit or last month payment back if your rental home is foreclosed. So the tenant is out a minimum of 2 months rent that was owed to them by the landlord. My suggestion on not paying rent was a method of "getting some value" from this money that the tenant already had paid. I don't see why this isn't fair?
Also, most notice of foreclosures provide that the home will be foreclosed in 120 days from the time of notice - or 4 months. We're not talking years here, we are talking four months, two of which have already been paid by the tenent. And the tenant won't be able to stay until the day of foreclosure, so we're talking maybe 45 days?
It would be very easy to prove that the landlord is a deadbeat and didn't pay his mortgage. The court docs are public record and in Wisconsin they are easily accessed on line.
The landlord committed fraud by leasing the property and not disclosing that it was in foreclosure. Look up fraud and you will understand what I am saying.
By the way, eviction is coming either way. The foreclosure over-rides a lease. So, the tenants loose either way. The thing we are trying to gain is time. Time to find a new place to live and to come up with the first and last months rent and the cost of moving. There is no free ride. First and last months rent and movers at the low end is $5000. Most of us can't come up with that in 30 days and still pay the rent.
So, having a copy of the landlords foreclosure papers which were filed prior to his leasing the property to me is pretty clear and evidence of fraud.
This guy is a real estate agent and believes as you all do.
And I am surprised that no one here has suggested that I contact the board of realtors, because this is something that needs to be reported. My real estate agent advised me of that fact right away.
But to me, I have nothing to loose. Really, I lost my home to foreclosure when my husband died. Actually I can buy this house when it goes to the bank. And of course he wont sell the property, that would be pointless. I can't see paying him one more red cent.
Mortgage Fraud is investigated by the Federal Bureau of Investigation and is punishable by up to 30 years in federal prison or $1,000,000 fine, or both. It is illegal for a person to make any false statement regarding income, assets, debt, or matters of identification, or to willfully overvalue any land or property, in a loan and credit application for the purpose of influencing in any way the action of a financial institution.
Please keep this in mind. If we start to realize that this type of activity is a crime and not just something people are getting away with the sooner it will stop.
This is bank fraud. And right now it is all of our business.
And really, when I have informed potential landlords of this scheme and that i am being evicted, they are the ones offering me proof that they are not pulling the same thing.
So, it may not be as devastating as you may think. It may be like a foreclosure, everyone is doing it or affected by it. Can't get around the foreclosure monster.
Bluewidow, trying to raise 3 fatherless sons in a very cruel and unjust world. Hoping that soon this upside down thinking will be righted.
By the way, the other tenants that are affected are a deaf couple.
This guy gets extra points for putting out the widow with kids AND a deaf family!
Bonus if the eviction can happen right around Christmas! It will be one of our fondest memories.
laundrymistress, it sounds like you certainly don't deserve what is happening to you and it is sad whenever anyone gets evicted. But especially when that person has been paying their rent and is not at fault. I hope your situation turns out better than you fear.
It could have been fraudulent to sell the home to you while it was in foreclosure, but it might not be. It would take a close review of your lease and the circumstances that accompanied your signing it. But I wouldn't be looking at mortgage fraud. It seems pretty clear to me that your situation does not amount to mortgage fraud.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
FBI Mortgage Fraud Warning
