FYI For those renting a home that is sold as short sale/or is being foreclosed (Century: short sales, foreclosures)

[algia]

Please be aware that the banks should be informed that you're renting by the realtor, or the owner, BUT if the house is going through a short sale, the bank has a completely DIFFERENT department that is almost NEVER notified that the house is being rented, and they send out a "Servicing Company" to mow the lawn, and if you're not there to make contact they might change the locks on you too!
Same happens if the property is being foreclosed on.

We just had this happen a couple of weeks ago. Apparently our realtor didn't make sure the bank knew the house was rented.

So, to those who move here, and rent, please check public records for the REAL status of the property every month to see if they stopped making payments= if you see a lis pendens contact whomever you're renting from and find out what your options are. Some people are VERY sneaky.
Search Official Records

[the awesomee]

I would suggest going through a management company if you decide to rent. No only are they more reputable, but they are usually a realtor of some sort (Century 21) while it may not stop an owner thats in foreclosure to stop renting it cuts down on it and lessens the chance of you getting ripped off.

[algia]

We are renting through a management company actually!

[cfbs2691]

Originally Posted by algia

Please be aware that the banks should be informed that you're renting by the realtor, or the owner, BUT if the house is going through a short sale, the bank has a completely DIFFERENT department that is almost NEVER notified that the house is being rented, and they send out a "Servicing Company" to mow the lawn, and if you're not there to make contact they might change the locks on you too!
Same happens if the property is being foreclosed on.

We just had this happen a couple of weeks ago. Apparently our realtor didn't make sure the bank knew the house was rented.

So, to those who move here, and rent, please check public records for the REAL status of the property every month to see if they stopped making payments= if you see a lis pendens contact whomever you're renting from and find out what your options are. Some people are VERY sneaky.
Search Official Records

I'm so sorry for your experience!
A friend who lives in AZ told me that because of things like this, renters check the landlords credit as much as the landlords check the renters credit.
Too many people are ending up homeless without notice due to foreclosures/short sales.

[algia]

Thank you.

Yeah, we thought it was quite odd (since we actually put an offer on the house even), to get a servicing company mowing the lawn one SUNDAY, no less, and where the HOA actually mows the lawn here for everyone, and I actually know from other people that some servicing companies change the locks too without any notice. My husband who is a short sale specialist told me that the department at the mortgage company that deals with short sales has no connection=communication with the dept that sends out the servicing companies. Therefore that side just "sees" the property being listed as a short sale/foreclosure, and sends out the servicing company automatically WITHOUT checking to see if the house is rented.

This is BESIDES any realtor, or owner though. A realtor will not know this unless they already showed up like in our case.

I posted this for those who move here to be aware, and for those renting and planing to short sale/foreclose on someone. Make sure you let your mortgage company know the house is rented, so your renters don't get kicked out.

Somebody should do something about this. Not sure in who's lap this falls too, but I blame both parties for not properly communicating between them. My husband had several clients who bought a short sale, moved in, and then had a servicing company come and take all their stuff out, because nobody bothered to let the mortgage company know the house was bought.

Originally Posted by cfbs2691

I'm so sorry for your experience!
A friend who lives in AZ told me that because of things like this, renters check the landlords credit as much as the landlords check the renters credit.
Too many people are ending up homeless without notice due to foreclosures/short sales.

[chi_tino]

Are we really going to reintroduce this topic again? It has been beaten like a dead horse. Oh well, since the original poster doesn't know how to use the "search" function on the website, I'll just copy-paste the response that I use every time:

---
When I rented my own properties out, I added a clause to my rental contracts for the benefit of my lessees that stated something along the lines of "if the lessor is delinquent with property taxes or loan payments, rent will be reduced to $0.00/month retroactively to the date that the payment was due and will continue to be $0.00/month until the date that the payments are made current."

Since there was a 0% chance of this happening, I felt confident enough to make that offer.

In this case, if the landlord tries to stop their tax or mortgage payments, you can halt rent payments and personally sue them for the rent that you have already paid while keeping the lease in force (they cannot evict you if they fail to perform on the lease agreement).

I suggest renters demand a clause like this on their leases. If a landlord refuses, they are probably a crook.
---

If you get evicted from a place because you do not have a clause like this protecting you, it is 100% your fault.

[algia]

Then don't answer!

Lots of people move here, and this is not exactly broadcasted on NBC!

You are 1 person out of how many underwater owners? management companies, and other RE's.

Our current owners have already stopped making payments and were not willing to reduce the rent....I have to stay in the school boundary and I am screwed out of money every month for the last 4 months. i also don't have extra money to drag them to court and pay their travel arrangements from Midwest down here. If I could, I would sue their ass to their monkey ancestors, but I can't.

Originally Posted by chi_tino

Are we really going to reintroduce this topic again? It has been beaten like a dead horse. Oh well, since the original poster doesn't know how to use the "search" function on the website, I'll just copy-paste the response that I use every time:

---You must be the ONLY one who has this clause as we've been renting for over 6 years now and have never encountered this line.
When I rented my own properties out, I added a clause to my rental contracts for the benefit of my lessees that stated something along the lines of "if the lessor is delinquent with property taxes or loan payments, rent will be reduced to $0.00/month retroactively to the date that the payment was due and will continue to be $0.00/month until the date that the payments are made current."

Since there was a 0% chance of this happening, I felt confident enough to make that offer. Wanna be my landlord? LOL

In this case, if the landlord tries to stop their tax or mortgage payments, you can halt rent payments and personally sue them for the rent that you have already paid while keeping the lease in force (they cannot evict you if they fail to perform on the lease agreement).

I suggest renters demand a clause like this on their leases. If a landlord refuses, they are probably a crook.
---

If you get evicted from a place because you do not have a clause like this protecting you, it is 100% your fault.

[Pragmaticus]

Originally Posted by algia

Thank you.

Yeah, we thought it was quite odd (since we actually put an offer on the house even), to get a servicing company mowing the lawn one SUNDAY, no less, and where the HOA actually mows the lawn here for everyone, and I actually know from other people that some servicing companies change the locks too without any notice. My husband who is a short sale specialist told me that the department at the mortgage company that deals with short sales has no connection=communication with the dept that sends out the servicing companies. Therefore that side just "sees" the property being listed as a short sale/foreclosure, and sends out the servicing company automatically WITHOUT checking to see if the house is rented.

This is BESIDES any realtor, or owner though. A realtor will not know this unless they already showed up like in our case.

I posted this for those who move here to be aware, and for those renting and planing to short sale/foreclose on someone. Make sure you let your mortgage company know the house is rented, so your renters don't get kicked out.

Somebody should do something about this. Not sure in who's lap this falls too, but I blame both parties for not properly communicating between them. My husband had several clients who bought a short sale, moved in, and then had a servicing company come and take all their stuff out, because nobody bothered to let the mortgage company know the house was bought.

When one buys a short or other type of sale, the title need to be cleared and that means the entity that holds the mortgage know it. In fact, it agreed to take less money than what is owed in the case of short sale. I am not sure how the mortgage company that agreed to sell short doesn't know about it. I may be missing something here but it doesn't make sense to me.

I can see the case you mentioned in the first paragraph happen though.

[algia]

The mortgage company has different departments, my hubby deals with this on daily basis. It is ridiculous, but its like the right hand doesn't know what the left hand does.
Lack of communication.

Originally Posted by MeInDenudinFL

When one buys a short or other type of sale, the title need to be cleared and that means the entity that holds the mortgage know it. In fact, it agreed to take less money than what is owed in the case of short sale. I am not sure how the mortgage company that agreed to sell short doesn't know about it. I may be missing something here but it doesn't make sense to me.

I can see the case you mentioned in the first paragraph happen though.

[bentlebee]

The law is very clear about this and changed a few years ago.

Any one on a lease that was signed prior to the owner defaulting on their mortgage can stay at the property until the lease ends. At any renewal it is the tenants due diligence and the owners ethical and moral obligation (but not mandatory unfortunately) to disclose if they are current or not on their mortgage.

If a tenant signs a lease while the mortgage is in default than you are seen as month to month tenants and have no other rights.

All tenants will receive legal letters at the property if the mortgage is defaulted and any tenant who claims not to get any papers is in denial.


We own a brokerage and property management company and many times tenants at first claim not to have received anything but if you ask further they all received paper but were in denial or threw them away.

Since in all surrounding Counties we have the great benefit of having public records and if you don't have a comp. ( lol, than you can't read this anyway...) than you can usea comp. at the library or at the court house to access it...

Nobody has to claim..." I didn't know"!

By law it is not the tenants business how the rent is spend by the LL and neither is it the LL business how the tenant spend their money as long as the tenant will pay the rent...It may not sound right but it is what it is.

It is not the realtors business to report to the mortgage company the message if the place is rented or not, BUT every mortgage company will ask :i the property vacant or occupied" when a short sale takes place.

In the paperwork submitted by the realtor to the mortgage company there are tax returns which should reflect rent money but most ownrs lie to the tax man....! Always check as tenant if the LL is claiming homestead...and report if they does while you are renting, that saves us all paying more!