Landlord getting foreclosed on

[kamorra2]

That is interesting TampaKaren. The amount that he owes is more than he could sell the house for and certainly more than I would pay for it. From the paperwork I got, it appears he got a 2nd mortgage on it at some point. I think I will contact the lawyer representing the bank. I just want to find out what to expect in the process and make sure they continue to notify me of updates. I'm not sure how it works. I don't want to be sitting here one day 3 months from now and the Sherrif's Dept shows up to evict me.

I was planning to buy when my lease was up but maybe this is a sign I should just bite the bullet and buy a house now.

[bentlebee]

Keep checking the public records, once a lis pendens is in the public records you can follow some new developments but most likely nothing will happen the upcoming months.

[kamorra2]

Just to give everyone an update, I did a search on the county where my landlord's primary residence is and that house is also being foreclosed on. My landlord still hasn't returned my calls.
I contacted the attorney listed on the Lis Pending notification and he won't talk to me. He says he cannot advise me or give me any information on the process. He says I have to contact my own attorney. Now this is ridiculous. So I have to pay money to find out what's going to happen to me?

I'm going to contact the bank and maybe I can find someone there that will be nice enough to tell me what to expect. Timelines, etc.

[bentlebee]

I would suggest you sent a certified letter to the LL at the address you always send the rent to...put in there that if he doesn't respond to your letter you will take that as an agreement to using the sec. deposit as last months rent. Incl. in that certified letter the rent so you have proof that he received it...if you have an email address for the Ll, than write him that your next rent with be sent by certified mail, so he will except the letter more easily.

[algia]

I agree with Bentlebee, write a certified letter and ask for your deposit BACK. Then move out...it's not like there isn't plenty of inventory available.....(well, I know.......packing...again.....pain in the butt............) but better than have the Sheriff at your door kicking your stuff out for you!

We now check public records to see property history.....I suggest you do the same and possibly find a property that has been all paid for, I know it is rare, but it is definitely worth looking.

Alex

[kamorra2]

I figured I should update this thread in case anyone else comes across it having the same issue. I did contact an attorney and he gave me some advice that I'll share with everyone.
The attorney basically told me there's 5 steps in a foreclosure process:
1. Lis Pending (1st notice that you're going to be foreclosed on)
2. Dept of defense military confirmation (this is a search on whether the owner is on 'active military duty'). If you're on military duty, they cannot foreclose on you.
3. Motion for summary final judgement. Basically says you're moving on in the process and the bank is asking for a hearing.
4. Notice of hearing date. They set an actual court date.
5. Court judgement. The judgement is finalized by the court. At that point, the bank takes ownership and it's over.

Each step can take anywhere between 30-90 days depending on how aggressive the bank is.

The attorney advised me to pay my rent for only the months that I live in the house under the current landlord minus my security deposit. Once the bank takes the house, your chance of seeing your security deposit is about 0%. So, if you know they're going to be foreclosed on Nov 1st, don't pay any rent in Oct because they have your security deposit.

Now this is the really interesting part. The attorney told me once the bank has the house, just stay there until they do something. He said the banks have a lot of houses with renters living in them. They aren't trying to sell the house, so you can stay there 6 months before they do anything. I'm not sure how that works but I found it interesting.
He said unless the bank contacts you to work out a new lease, they can't just 'kick you out'. They have to give you 30 days notice or a new lease. And since you're not under any contractual agreement with the bank, you're not failing to pay anything.

So there you have it. I've learned a lot in this process. I hope this can help someone else going through the same thing.

[mquintana]

What your landlord did is against the law. This is something new due to the new economy. TampaKaren's post with the links is super helpful. But the new law was to protect the tenants from dead beat landlord's such as the one you had. Start calling lawyers!

[mquintana]

Yes, any attorney who is dealing with the landlord or their given situation is actually not permitted to speak with you. Same goes for our attorney's, they are not permitted to speak with our residents.

I would definatly get an attorney, and if you do not have enough money, call Legal Aid and see if they can help (they have income requirements). If not, there might be an attorney who would consider pro bono work...

Originally Posted by kamorra2

Just to give everyone an update, I did a search on the county where my landlord's primary residence is and that house is also being foreclosed on. My landlord still hasn't returned my calls.
I contacted the attorney listed on the Lis Pending notification and he won't talk to me. He says he cannot advise me or give me any information on the process. He says I have to contact my own attorney. Now this is ridiculous. So I have to pay money to find out what's going to happen to me?

I'm going to contact the bank and maybe I can find someone there that will be nice enough to tell me what to expect. Timelines, etc.

[mquintana]

Ah, well I am glad you got help on this matter. And yes, there are a lot of renters staying in the forclosed homes. There's a thread on here with an article about it....

Originally Posted by kamorra2

I figured I should update this thread in case anyone else comes across it having the same issue. I did contact an attorney and he gave me some advice that I'll share with everyone.
The attorney basically told me there's 5 steps in a foreclosure process:
1. Lis Pending (1st notice that you're going to be foreclosed on)
2. Dept of defense military confirmation (this is a search on whether the owner is on 'active military duty'). If you're on military duty, they cannot foreclose on you.
3. Motion for summary final judgement. Basically says you're moving on in the process and the bank is asking for a hearing.
4. Notice of hearing date. They set an actual court date.
5. Court judgement. The judgement is finalized by the court. At that point, the bank takes ownership and it's over.

Each step can take anywhere between 30-90 days depending on how aggressive the bank is.

The attorney advised me to pay my rent for only the months that I live in the house under the current landlord minus my security deposit. Once the bank takes the house, your chance of seeing your security deposit is about 0%. So, if you know they're going to be foreclosed on Nov 1st, don't pay any rent in Oct because they have your security deposit.

Now this is the really interesting part. The attorney told me once the bank has the house, just stay there until they do something. He said the banks have a lot of houses with renters living in them. They aren't trying to sell the house, so you can stay there 6 months before they do anything. I'm not sure how that works but I found it interesting.
He said unless the bank contacts you to work out a new lease, they can't just 'kick you out'. They have to give you 30 days notice or a new lease. And since you're not under any contractual agreement with the bank, you're not failing to pay anything.

So there you have it. I've learned a lot in this process. I hope this can help someone else going through the same thing.