I have puchased several foreclosures with tenants living there. And I have heard the stories 1st hand about the previous landlords. In many cases, we kept the property and retained the tenants. The tenants were relieved and we get an immediate return on our investment. As a landlord, I would never sign a lease with the types of conditions you are suggesting. Where we live, we have a lot of competition for our rentals so we would pass on a tenant wanting this. I also have met many tenants in foreclosure of properties we don’t buy. And I have helped them to understand what is happening and what their rights are in general. Bona fide tenants in foreclosure have more rights than the owners living in the house have. You seem like a smart guy with the ability to do your own research. I would suggest that you do your own research a the county recorder on any property you are thinking about renting. Look a the history of the owner and the property. Use Zillow or other sites to check values and it is or has been listed for sale. If you discover the property is worth $200K and there is a $400K mortgage, you may want to look for another rental. If you see it is in default or has been in default, don’t rent it. The truth is that there are more good landlords that have managed their properties and they are not under water. If you are fed up with the whole thing and tired of the uncertainty and control of renting, then now is a great time to become a homeowner. I would assume from your demands that you have an 700+ FICO, a great job and money in the bank. These are the things we look for in our tenants.
@richard - the ONLY reason someone like you, i.e an owner would refuse to sign the aforementioned "FORECLOSURE CLAUSE, is simply because you are in DEFAULT, and the thus the exact type of owner any Resident should clearly avoid. BTW - who says I do not own property?
New flash: Bona Fide Tenants all over this despicably corrupt and soon-to-be-revolted country, must FIGHT to protect their PTFA rights. Try READING the FACTS dude – what are you smoking???
“I would assume from your demands that you have an 700+ FICO, a great job and money in the bank. These are the things we look for in our tenants.”
Oh yeah - just go do a forensic financial investigation on every prospective rental - what an IDIOTIC idea. In case you do not know: the “county recorder” doe NOT record if a property owner is 90 days in default, wizard.
I would assume form your [quoted] sarcastic smart ass comment that you are the type of con artist/liar every Resident must avoid.
I also feel very sorry for an Resident who has to deal with you dude.
So; we both can assume, huh???
We are not a sub-prime landlord. So, I can see if you are a sub-prime tenant, the only option you have is to play the victim. We have great relationships with our tenants and we provide quality housing at competitive rents. Our are long term tenants. BTW, if what you want is to know if the landlord misses a payment, how are you going to find that out? Privacy laws prevent the banks from talking to anyone other than the borrower. So, unless the situation becomes severe enough to result in the recording of a notice of defualt, how are you going to know?
MOTS: You obviously are just looking for confirmation that it is ok to not meet your obligation. When you do not pay rent you become a thief. You have a lease agreement. This included making monthly payments in exchange for living in the property. The “Protecting Tenants in Foreclosure Act” means you cannot be harmed. The terms of the agreement you signed will be adhered to. Pay your rent and live in the property. Just make sure you send it to the current owner (BTW if the previous owner did accept rent after title was transferred then you could sue them). Stop blaming everybody else or scrambling for excuses to steal. If you signed a two year lease then it will be honored. One year lease? Will be honored. You will not be harmed. Nothing has changed for you. Except you may actually be approached by a future owner with “cash for keys” which you do not have to take.
I am understanding what the options and consequences are if you have a signed lease contract when you are a tenant renting property while the property has received a “Notice of Sale”. However, I really have no legal binding to the property I am renting on. There is no hardcopy to a signed lease…no proof whatsoever. I was asked to stay at least 3 months and then I’m month-to-month after that. I have been there for almost a year on May 24th, 2012. It was also verbally agreed upon that rent was to be paid the first of every month (no problem). I have been receiving mail for the past year at this property and my driver’s license has the current with the address of the rental property. Does this mean that I am basically screwed once the property has been sold? Do I have any rental rights even though there’s no proof of a written lease? I feel like a sitting duck and do not know what to do since the landlord won’t come clean…
Even without a lease they have to give you 90 days notice if you can show that you are a tenant. Proof of past rent payments should be more than sufficient.
I plan on buying a foreclosed property that is currently occupied by a tenant that is on a month-to-month lease. I would like to continue renting the property to the same tenant if they so desire. I know that a new lease will have to be signed, I would also like a security deposit. Is the current tenant required to pay that deposit?
If the new owner gives you 90 days to vacate do you still have to pay rent or do you take that time to save for a new place to live?
Hi Nicole, The PTFA is poorly written when it comes to the payment of rent during the 90 days. They cannot evict you for non payment of rent during the 90 days but they could seek a judgement for the past due rent at the end of the 90 days if they are forced to evict you. Oftentimes it is better to negotiate a cash for keys agreement or work out some other agreement to vacate the home by a certain date.
You talk about obligation, but the landlord had an obligation as well. People are afraid and don’t know what to expect when the sheriff comes knocking on your door out of the blue with foreclosure papers. It is unfair to the tenant and the laws are still not thorough enough in my opinion. Everyone’s situation is different. I certainly thought about whether or not I had to still pay rent. It?s so wrong to put people in such stressful, awkward situations, especially if the landlord was aware of what was transpiring in the first place! *Slum lords
what if the rent that they are refusing to pay is rent for the current month they have already paid the previous owner for.
If the tenant wants to stay in the property and continue renting from the new owner, they must sing a new lease agreement with the new owner. The new owner can require a security deposit, which would be stipulated in the new lease agreement. The past security deposit, if any, is the responsibility of the previous owner who had the contract with the current tenant.
Absolutely not!!! In ny it’s called fraud and the former owner can face fines and prison…once the bank shows up to your rental with repo and forcloser paper work you don’t have to pay a dime to the landlord and in some cases you can get cash for keys!