Landlord just called, House is being auctioned off

Dback Jon · April 19th, 2010, 04:47 PM

We have a lease that goes to the end of September. Auction is on July 12th.

What are our rights? Do we still pay rent (obviously, landlord was not using rent check to pay mortgage). What about deposit (Last month's rent).

thirty-two · April 19th, 2010, 04:53 PM

Ughhhhhhhhhhh that freaking sucks!

I have no idea about recourse, but I hope there is something. On the "bright side," they at least gave you SOME notice, and not like... a week. But still, that sucks man.

bankybruce · April 19th, 2010, 06:02 PM

Quote:

Originally Posted by Dback Jon

We have a lease that goes to the end of September. Auction is on July 12th.

What are our rights? Do we still pay rent (obviously, landlord was not using rent check to pay mortgage). What about deposit (Last month's rent).

We were in the same situation about 2 years a ago. Technically, you have to pay rent until the house is no longer owned by the current owner. The only way you can get your deposit back is most likely by suing them unless they want to give it back, which at this point, is unlikely, otherwise they would not have gone in to foreclosure. My advice would be to start looking now since you lease is not worth the paper it was written on once the house is auctioned off and you can be served with a eviction notice at any time after that. Usually they will give you a bit of time to get out. Luckily for me, we went through a property management company who took care of everything and held our deposit for us. Because of that, we go it back, so if you are going to rent a house, go through a property agency so that you can at least ensure to get your deposit back. They even stopped collecting rent once the house was listed for auction, so he got 45 rent free. The said since the lease was with them and not the owner, they felt it was wrong to collect rent. Not sure if that was legal on their part, but it paid for our new washer and dryer in the house be purchased.

azmike74 · April 19th, 2010, 06:05 PM

That sucks Jon, I remember this topic came up awhile back and some posters had expressed some concern that this may happen.

I wish I knew what you should do legally. I'd certainly be inclined to no longer pay rent and save your money for a new place that's for sure.

NMCard · April 19th, 2010, 06:15 PM

Is it a place you would like to own? Maybe you can make a deal with the bank to purchase prior to auction?

Dback Jon · April 19th, 2010, 06:32 PM

NM Card - we are going to explore that - mostly like the house and the neighborhood.

There is a new law that gives us some protection - 90 days after the auction.

Landlord has said he will not collect rent anymore (I don't have an address, he just stops by to pick it up - and I think I would be justified in not paying one month, anyways, because of the deposit).

Linderbee · April 19th, 2010, 06:35 PM

That sucks; been there, had that happen to me. Only I got pretty much no notice--and I was renting through a co-worker. She had seller financing, and he foreclosed on her. She didn't even tell me. One day, she just up & disappeared from our office & later that day I got notice from the owner that we had to move out. He gave us a couple of weeks, and did feel bad.

Oh, and we were Realtors at the time.

I wouldn't pay anymore, either; I'm glad to see he's basically doing the right thing by not collecting. I hate to be a downer, but I doubt you'll have much luck purchasing before auction. The whole thing just sucks; I'm sorry.

AzCards21 · April 19th, 2010, 08:10 PM

Actually may have a pretty good chance to buy it before auction but you'll have to get on it right away. Ask the lender about a short sale they may go for it.

dreamcastrocks · April 20th, 2010, 05:53 AM

Quote:

Originally Posted by Linderbee

That sucks; been there, had that happen to me. Only I got pretty much no notice--and I was renting through a co-worker. She had seller financing, and he foreclosed on her. She didn't even tell me. One day, she just up & disappeared from our office & later that day I got notice from the owner that we had to move out. He gave us a couple of weeks, and did feel bad.

Oh, and we were Realtors at the time.

I wouldn't pay anymore, either; I'm glad to see he's basically doing the right thing by not collecting. I hate to be a downer, but I doubt you'll have much luck purchasing before auction. The whole thing just sucks; I'm sorry.

At the very least, I would only pay until the amount of my deposit would have been refunded. ex. If your deposit was $1500 and your rent is $1000/month, I wouldn't pay the last month and a half. It's very doubtful you ever see that deposit. At least the landlord seems somewhat understanding.

AzCards is right about a possible short sale. You may have a chance. Too late you didn't find out about this 6 weeks ago, or you could have received the 8k tax credit as well.

nathan · April 20th, 2010, 06:30 AM

Quote:

Originally Posted by dreamcastrocks

AzCards is right about a possible short sale. You may have a chance. Too late you didn't find out about this 6 weeks ago, or you could have received the 8k tax credit as well.

He could still receive the credit if he's under contract by April 30th and closes by June 30th.

dreamcastrocks · April 20th, 2010, 07:04 AM

Quote:

Originally Posted by nathan

He could still receive the credit if he's under contract by April 30th and closes by June 30th.

I don't think that is enough time, but it could be.

Linderbee · April 20th, 2010, 09:59 AM

Quote:

Originally Posted by nathan

He could still receive the credit if he's under contract by April 30th and closes by June 30th.

And a "first time" homebuyer, right?

Jersey Girl · April 20th, 2010, 10:44 AM

Man, that sucks, Jon. I would makesome calls and see what your rights are.

Good luck.

Pariah · April 20th, 2010, 11:07 AM

It's really inconvenient, but it sounds like it could also be a good opportunity, too. Even if you decide not to try and buy it, you can bank a few bucks in the meantime.

dreamcastrocks · April 20th, 2010, 11:15 AM

Quote:

Originally Posted by Linderbee

And a "first time" homebuyer, right?

Even if not a first home buyer (not sure about Jon) you can still qualify for the existing home buyer credit at $6500 if he hasn't purchased in the past 3 years.