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I am subleasing an apartment in an NYC co-op building. The apartment has been in foreclosure for over a year (a fact I was unaware of - the owner lives abroad and I'm a year and a half into a two year lease) and last week I received a 72-hour eviction notice addressed to her and/or any subtenants occupying the unit. I successfully acquired an order from the housing court to temporarily stay the eviction, and the owner is going to court tomorrow to try to "resolve the situation," apparently, but at this point I just want to terminate my lease as soon as possible. Is the owner legally obligated to let me do so without penalty, as I would have been without an apartment had I not taken action and gone to housing court on her behalf to stay the eviction?
When a rental goes into foreclosure, what happens is, your contract becomes the property of the lender. So, the lender is your landlord, once the foreclosure is complete.
Under a law President Obama enacted, you have the right to stay and finish out your lease. The only way the new owner can kick you out sooner, is if they want to inhabit it themselves. In that case, they have to give you 90 days notice:
If you want to stay, you need to immediately put in writing to the lender that you are expecting them to follow the law according to the law above, and that if they file an unlawful detainer (eviction action) that means that you will end up on an eviction database that will ruin your ability to rent anywhere else, that you will sue the pants off of them.
Now, if you actually want to break the lease, what you can do is write to your landlord and tell them you are not going to take the chance of getting your name on any eviction database that will ruin your chances of renting, that you believe he committed fraud by renting you a unit he did not have the right to rent, and that you are therefore, terminating the lease immediately, and if he does not return your full deposit, you will sue him based on fraud and anything else the court allows.
Your new "landlord" obviously won't give you a hard time for moving out, because they want you out.
BTW, the eviction databases are a list that any landlord or employer, etc., can buy. And it includes any eviction proceeding that was filed. It doesn't care if you win. So, if they file an action, whether they are in the right or not, whether you win or not - you will be on that database which equals renting death.
When a rental goes into foreclosure, what happens is, your contract becomes the property of the lender. So, the lender is your landlord, once the foreclosure is complete.
Under a law President Obama enacted, you have the right to stay and finish out your lease. The only way the new owner can kick you out sooner, is if they want to inhabit it themselves. In that case, they have to give you 90 days notice:
If you want to stay, you need to immediately put in writing to the lender that you are expecting them to follow the law according to the law above, and that if they file an unlawful detainer (eviction action) that means that you will end up on an eviction database that will ruin your ability to rent anywhere else, that you will sue the pants off of them.
Now, if you actually want to break the lease, what you can do is write to your landlord and tell them you are not going to take the chance of getting your name on any eviction database that will ruin your chances of renting, that you believe he committed fraud by renting you a unit he did not have the right to rent, and that you are therefore, terminating the lease immediately, and if he does not return your full deposit, you will sue him based on fraud and anything else the court allows.
Your new "landlord" obviously won't give you a hard time for moving out, because they want you out.
BTW, the eviction databases are a list that any landlord or employer, etc., can buy. And it includes any eviction proceeding that was filed. It doesn't care if you win. So, if they file an action, whether they are in the right or not, whether you win or not - you will be on that database which equals renting death.
Now, if you actually want to break the lease, what you can do is write to your landlord and tell them you are not going to take the chance of getting your name on any eviction database that will ruin your chances of renting
Would my name get on the eviction database if none of the notices were addressed to me, though? They were all addressed to my landlord. But still, I see your point. I'm hesitant to take legal action here except as a last resort because a) I can't afford it and b) I don't want to risk my name showing up in any sort of landlord-tenant dispute because yeah, I do need to rent again in NYC.
I suggested you seek legal advice, not take legal action. As said, the expiration of the Foreclosure Act which poster NoMoreSnow mistakenly cited as of help to someone in your situation, has negated your protection under it so you need to find out exactly where you stand.
Would my name get on the eviction database if none of the notices were addressed to me, though? They were all addressed to my landlord. But still, I see your point. I'm hesitant to take legal action here except as a last resort because a) I can't afford it and b) I don't want to risk my name showing up in any sort of landlord-tenant dispute because yeah, I do need to rent again in NYC.
Thanks so much for your advice. Very helpful!
I would assume, that if this property went into foreclosure prior to December 31, 2014, and it sure looks like it did, that this law would still protect you. If it comes down to needing it, that would be my argument.
You wouldn't have any problem with the tenant eviction database if there was never any action that named you specifically. But, if this bank wants you out, they will be finding out your name and put it on an eviction notice. Or your landlord will be putting your name on something, if he fears legal action.
At this point, you're fine. But, I think you need to do the above to protect yourself if you want to stay or leave.
If you want to stay, include in your letter that you believe that since the foreclosure action began prior to December 31, 2014, that you are protected under that law. And put that in writing to both the landlord and the bank - that you believe you are covered under that law, because the foreclosure began prior to Dec 31, 2014, and you will fight them if they try to say differently.
That's what I'd do. It would take them a good while to try and figure out if you are right or wrong, and that alone could become a legal issue - when exactly does this law expire with regard to a tenant who rented a place that was in foreclosure prior to the expiration date and didn't know it, and is in the middle of a lease. It would be reasonable to say that you are covered under that law. And that's what laws are based on - what is "reasonable." Unless the statute states exactly what the expiration date means, there will be lots of arguing in the courts about who is still covered and who isn't.
Of course, you need to continue paying rent to whomever is the actual owner at this point. I'd send the rent to the landlord, and a letter to the bank saying you will continue to do so until you get official notice that they are now your landlord.
Last edited by NoMoreSnowForMe; 02-06-2015 at 03:47 PM..
I would assume, that if this property went into foreclosure prior to December 31, 2014, and it sure looks like it did, that this law would still protect you. ... when exactly does this law expire with regard to a tenant who rented a place that was in foreclosure prior to the expiration date and didn't know it, and is in the middle of a lease.
Precisely why the OP should seek legal counsel. What you, I or anyone else on a forum would do is irrelevant since we're not attorneys and shouldn't bandy around assumptions.
Why not open an escrow account with the bank that owns the property and be specific in demanding that the account be noted that it is purely for the rent of the unit? I've never had to deal with a situation like this personally, but it seems to me it would be a good-faith attempt to pay rent even though you aren't sure who should be receiving it.
Calling into question the sunset of that law is sure to buy you plenty of time to find a new place and not face eviction.
NoMoreSnowForMe, if the bank sent the eviction notice, wouldn't they be considered the owner of record since you can't evict someone from a property you don't own? Further, would the termination of the parent lease (I can't recall the exact legal term) terminate the sublease? It would seem that one needs to be in place for the other to exist.
Again, I've never dealt with this kind of thing so this is purely for my own curiosity and education. OP, please do not take this as legal advice or any kind of advice. I know more about space shuttles than I do NY Landlord-Tenant Law, which ain't much.
Why not open an escrow account with the bank that owns the property and be specific in demanding that the account be noted that it is purely for the rent of the unit? I've never had to deal with a situation like this personally, but it seems to me it would be a good-faith attempt to pay rent even though you aren't sure who should be receiving it.
Calling into question the sunset of that law is sure to buy you plenty of time to find a new place and not face eviction.
NoMoreSnowForMe, if the bank sent the eviction notice, wouldn't they be considered the owner of record since you can't evict someone from a property you don't own? Further, would the termination of the parent lease (I can't recall the exact legal term) terminate the sublease? It would seem that one needs to be in place for the other to exist.
Again, I've never dealt with this kind of thing so this is purely for my own curiosity and education. OP, please do not take this as legal advice or any kind of advice. I know more about space shuttles than I do NY Landlord-Tenant Law, which ain't much.
Normally, the bank has to get legal standing that they are, in fact, now the official owner of the property, through the court. The tenant should be notified of this by the new "owner," with instructions of where to now send the rent. There's nothing to keep the bank from bluffing, though, and hoping everyone just moves out because they said so - even if they don't have the right to do so.
I think it's important for the OP to contact the bank in writing and make sure they know she (I'm assuming the OP is a she, sorry if I'm wrong) is a current tenant. And ask for legal proof that she should be sending the rent to the bank now, and to what address. And until she receives these documents, she will continue to pay the current landlord.
The bank may also be trying to avoid acknowledging that she's a current tenant, to get out of their responsibilities.
As far as the sublease being void once the original landlord is no longer the owner - no, the sublease does not become void - as long as the sublease was legal to begin with.
What it's called is an "assignment." The owner of the original lease (between the landlord and the subtenant) just gets transferred to a new owner of that contract. Think of any debts or student loans that get sold over and over to new lenders. The original contract is valid with the student or borrower, but the owner of that note gets sold to someone else.
So, as long as the landlord had a legal right to sublet, that sublet goes with the property to the new owner. Same exact contract, same terms, same ending date - just a new landlord.
If the landlord did not have a right to sublet, then that contract can be voided - to the point that the tenant is basically a squatter, then the tenant may have to move out and could then sue the landlord. She'd also be able to just break the lease immediately, as the contract wasn't legal in the first place, with no consequences as far as owing the landlord. Illegal contracts are not valid.
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