Renter in Cali,found out the LL is being foreclosed on.
Submitted by digitalth2000 on Tue, 09/02/2008 - 4:58pm.
I am a renter in cali, and just found out that my landlord hasn't been paying his mortgage since July, and seems he's going to let it go through foreclosure. As renters, we would be interested in staying, and maybe purchasing the property. Would it be best to contact the mortgage company and make an offer, tell them our situation?..Do we still need to pay our rent? The landlord obviously is running with our payments, plus our deposit. Does the landlord still have a right to talk to us, or correspond in regards to last months, during the foreclosure process?..we feel his actions are malicious and would like to stay in the place? What the best course of action, considering I'm thinking september is the third month of non payment. .plus he's not paying the hoa fees...How do we position ourselves to potentially buying the property on the cheap...considering the overinflated prices..etc....help...please ..and thank you!
Comments:
Quickly:
1. Until the property has been foreclosed and the bank owns it, you would have to buy it from the owner. Could work out well for him if he cooperated and the bank accepted a short sale (assuming he is upside down).
2. Yes, you still need to pay your rent. Though you should take steps to protect yourself. You can find other posts discussing that here.
3. Yes, the owner has every right to continue to collect rents despite his failure to pay the mortgage unless your rental agreement gives you an exception for foreclosure (doubtful).
4. You should watch the foreclosure proceedings, and what it sells at auction for. Property's are getting significantly discounted at auction, but I'm going to assume you don't have the cash to pay for the house in full (which most foreclosure auctions require). As soon as the auction is over you could certainly reach out to the bank and make an offer.
thanks....so, I haven't received any letters towards tenants, or anything in my name....Assuming sept is the 3rd month of deliquency on behalf of the owner, ...when does my 60days go into effect...can i hold until as much as i can , and then it triggers the 60 days..and during that time..do i pay rent? not the owner..?...
what's the likelyhood of the bank willing to neg. with me, before it goes to auction?
- Near zero possibility of the bank negotiating with you before the sale as they aren't the owner.
- Your 60 days goes into affect from the date they serve you with an eviction notice.
- You should stop paying rent the day the owner loses the house at foreclosure auction. You can track this by calling the trustee on the notice of sale, or by using a service like ForeclosureRadar.com
- A broker representing the lender will likely contact you shortly after the sale, and prior to you being served with the eviction notice with a "cash-for-keys" offer to move quickly.
Digitalth2000 -
If you contact me with specifics, I can contact the owner and see if he is interested in cooperating with a Short Sale - The benefits will be many for him and we are experienced at negotiating short sales with banks.
Also, I'll let you know if a NOD has been filed and can track for you when the Foreclosure will be. As a tenant you have the right to stay 60 days after the foreclosure and Sean is right the Bank will offer you cash for keys.
BOB
949-600-5404
bob@inspiragroup.com
I would recommend you to pay a really good ammount of attention to your landlord. You don't want to risk with your life savings under any circumstances.
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