Landlord not paying his mortgage (attorney, party, agreement)

[BucFan]

Don't know why you should benefit from the misfortune of the owner. You're still occupying the home - no reason why you should be living rent free other than the uncertainty that they house will be sold while you're a tenant.

If I were leasing a car from a dealership that is having a hard time paying its bill, I wouldn't be allowed to drive the car without paying my montly fees, would I?

[tilli]

No-I didn't say they didn't have to pay, I just said they don't have to pay the $2000.00-he told me-for instance, if I had rented a house for $1200, and they fell in default, then I could give them like $500-600 a month.

Sounds like you are saying that on a $1200 rent he would only have to pay $500-600/mo, as though a tenant can just arbitrarily choose how much rent they will pay. Based on what? How do you arrive at that figure?

I can't find the link right now to the article that I have posted on this forum before, about LL by law being required to sign a waiver stating that they are up to date on all their payments for the house.
I read it a few months ago and it was part of a new law that was going to be in place around March or April of this year, to prevent tenants paying for rent for homes that are in foreclosure or on which the home owners have stopped paying the mortgage for, at the time they rented it.

I would really like to read that if anyone finds a link.

[HCHMills]

I have been getting notices from Wells Fargo Home Mortgage, since mid-Feb., every two weeks or so, twice with a strong reccommendation that i move soon. My landlord stated when approach that it was the home she lives in, then it was a mistake and now that she is trying to get a modification, which I thought was not ok on a property you use for income. One notice said they had until yesterday the 23rd to cure the action, and it was not done...Now what? I am going through a terrible divorce, my husband has took all financial assets and I have four children and a dog...Trying to get a job and struggling ...What do I do...is there any advice...even on who I may or can contact?

[HCHMills]

Understand what is being said about not paying the rent, but how about those of us who have been paying the rent, esp. when it is above the mortagage and the mortgage is not being paid for many months. I heard Obama passed alaw for tenants since this is happening more an dmor ebut I do not know the info on it.

[jcoltrane]

Originally Posted by jusp57

I am in unfamiliar territory and need some advice. We are currently leasing a house, the landlord has put it on the market to sell. He has also quit making his mortgage payments in order to qualify for a short sale, but still demands my $2,000 a month which he is pocketing. Is there something that I can do about this? I have people coming to the door looking for their money.

I strongly suggest you get PROFESSIONAL advice from an experienced attorney. A consulting fee s/b $0 to $150. Call your local bar association for reccomendations.

The bottom line is that you are going to have to move--PERIOD! Though it may be possible to work out something with the mortgage holder.

At some point the mortgage holder will foreclose upon the property and anyone in residence will be evicted. Your things will be set upon the curb. The only question is when. It could be tommorrow or several months from now.

What is your lease term? Month to month?

In any event, the LL by refusing to pay the mortgage and allowing the home to be foreclosed is breaking the lease. Again, I strongly suggest you contact an attorney.

If I were you and in your position (and the LL continued to demand rent) I would cease paying rent; and use the money to engage an attorney and prepare to move.

The LL has only one legal recourse and that is to begin eviction proceedings for non-payment of rent. Ultimately, that is what you want to be let out of the lease.

Make sure that you have PROOF! that the LL is not paying the mortgage and/or that the mortgage holder had begun foreclosure proceedings.

I would suggest that you record/tape any conversation with the LL, specifically those in which it is stated that he is refusing to pay the mortgage.

The "proof" is simply to protect yourself in the event the LL begins eviction proceedings.

It is unlikely that the LL will evict, as it will cost him money. Secondly, the time factor is against him. It'll take a couple of months to get an eviction (even if you do nothing). Of course, you'll go to court with your "proof", in which case the judge will work out an agreement giving you sufficient time to move with zero or reduced rent.

Bottom line, you are in the drivers seat regarding rent. The LL has little recourse if you stop paying. Do what is in YOUR best interest. Quite obviously, the LL is doing what is in his and is regardless of you.

Get an attorney!

Luck!

[bentlebee]

You have to pay the rent or you might face a judgment + all court costs + interest + fees, and on top of that your credit score will plunge.

It is very sad to be in the situation you are in but moving should be the best option. Since you started to write this thread months have gone by so I assume your lease should expire sooner than later...

[jcoltrane]

The credit score would only be effected if the tenant was actually evicted; AND, the LL reported the eviction/tenant to a credit reporting agency. Small LLs with only a property or two are unlikely to do this.

In the circumstance described, the tenant would be 'withholding' rent as a result of some discrepancy between the lease parties. Within the lease/tenancy, both the tenant and the LL have certain obligations. As described the tenant is meeting his/her obligations, but the LL is not. Without going all legal, simply put the LL is required to pay the mortgage! By not doing so the LL is defaulting upon the lease obligations. I'm not directly familiar with FL law, but this is basic contract law which applies everywhere.

By not paying the mortgage the LL will cause an eviction upon the tenant through no fault of the tenant. Presuming the eviction will occur within the lease term, the LL will not be completing the lease term, thereby breaking the lease.

BTW, by not paying the mortgage and allowing a foreclosure to be effected, the LL exposes himself to damages incurred by the tenant as a result of the foreclosure.

Withhold the rent. A court will force a settlement, and will NOT apply costs, fees nor interest to the tenant. If at all, the court will apply such to the LL, because if the LL pays the mortgage then they wouldn't be in court.

[goi_cuon]

I have a contractual relationship with my landlord. My landlord has a contractual relationship with the mortgage company. My relationship with the landlord has nothing to do with his mortgage relationship with the lender. These are two separate relationships governed by two completely separate legal documents.

I have no relationship with the mortgage company. If my landlord's creditors harass me, I can bring legal action against them. When they knock on my door, I should tell them to go talk to him. If they keep on, I'll call the cops.

I have to conform to my lease agreement or my landlord CAN hold my feet to the fire. If I default on my lease, I deserve to get my credit wrecked.

Until and unless the mortgage is foreclosed, that legal proceeding has nothing to do with me. After the foreclosure, I begin a relationship with the new owner. The new property owner will have to deal with me legally by serving notice to vacate or negotiating a new lease with me. If I have defaulted in my lease with the prior owner, why would he be willing to offer me another lease, as I am a deadbeat?

Honor YOUR legal obligations. Let your landlord worry about his obligations. If it becomes your problem, then you can deal with it, but not until.

[bentlebee]

Well you are part of the foreclosure since you probable are served as John Doe or unknown tenant with papers notifying there will be foreclosed on the property. The process is long and it can take a yr or longer before it really happens. But since you were notified and they have proof you have no law behind you to keep you in the home and although it isn't a good position you are in, you make it worse to stay much longer and being evicted due to the foreclosure..in the end you will have 24 or 48 hours to leave the house and don't start crying than since you are aware of the sotuation for a long time. You are right to tell the people at your door to go away and you can send them to the owner...
We had tenants in ou neighborhood going through the same thing and after the first shock they realized they had to move. Some stayed for months and waited till their contract was over and moved. Both homes are still not foreclosed on but the tenants moved after their lease expired...which was more than 6 months ago and the homes are still empty. They were smart not to wait till the last minute.

[Sodachic]

If I puchased a home thru private owners (not a bank) and they hold the mortgage but I hold the title, I have gotten behind on one payment and they sent me a notice from a lawyer telling me to pay up or they are persusing legal actions and I have to pay a $350.00 lawyer fee for them sending me this notice? They also sent a letter of eviction to my tenant on the property. What do I do?