» No Label » If the House I Am Renting Is in Foreclosure, Do I Have to Pay Rent?

If the House I Am Renting Is in Foreclosure, Do I Have to Pay Rent?

Foreclosure is the process that a lender, usually a bank, uses to sell a house as collateral and redeem debt owed on a mortgage that is not being paid off. There is no need for the homeowner to actually be living in the house when it is foreclosed. It is common for landlords to buy investment properties, rent them out and then find that they cannot make the mortgage payments. This leaves the tenants wondering what will happen with their leases, if they have to keep paying rent and what their next steps should be.

Contract Termination

    Tenants should carefully examine their lease contracts when first renting. Some contracts make provisions for foreclosures that allow tenants to sever the lease and leave the house if a foreclosure is begun -- an easy way to get out of a complicated situation. Tenants may want to ask for such a clause in a contract if they are wary of foreclosure processes. This removes the need to continue paying rent in these circumstances, as the lease is cancelled.

During Foreclosure

    While the foreclosure is occurring, the landlord retains possession of the property and the lease is ongoing, which means the tenant must pay rent as previously required. The foreclosure process can take some time, anywhere from several months to a year, which may give the tenant the time to end the lease and make other arrangements. But in the meantime, the obligation to pay rent continues and is not affected by the foreclosure.

After Transfer of Property

    When the foreclosure is completed, the house switches hands, and the rules can become more complex. Due to federal legislation and varying state laws, new owners must give tenants at least 90 days to vacate the house, in the form of a written notice. If the lease has not expired, then the tenant can stay in the property for the length of the lease if it continues for longer than 90 days, but this must be at the discretion of the new owner. Either way, the tenant must continue paying rent, but to the new owner -- often a bank or investment firm.

Cash for Keys

    When financial institutions receive foreclosures, they often want to sell them as quickly as possible to save money and recoup costs. Tenants get in the way of this process, so banks offer what is commonly known as a "cash for keys" program, where the bank offers the people living in the house a cash sum to immediately leave. This may be an advantageous solution for some tenants who want to move out.


  • How do I find out if someone is in foreclosure? Do I have to pay ...

    answers.yahoo.com/question/index?qid=20071126184516AA253NfLast updated: Nov 27, 2007 16 posts First post: Nov 27, 2007

    Nov 27, 2007 How do I find out if someone is in foreclosure? Do I have to pay rent if my land lord is in foreclosure? 6 years ago; Report Abuse


  • Foreclosure Process - Home Loans by LoanSafe

    www.loansafe.org/forum

    LoanSafe.org is America's 1 mortgage forum. Get free help with your home loan today.


  • What can I do if my tenant does not pay the rent for two month ...

    answers.yahoo.com/question/index?qid=20090214182746AAxArlWLast updated: Feb 15, 2009 12 posts First post: Feb 15, 2009

    Feb 15, 2009 Best Answer: First off, the deposit is a security deposit and not to be used as rent. It is returned after they move out and you have determined that ...


  • The Buy vs. Rent Decision: Money Matters - Yahoo! Finance

    biz.yahoo.com/pfg/e10buyrent

    The Buy vs. Rent Decision. House Rules: How to Decide If It's Time to Own Rather Than Rent. By Suze Orman. Home ownership is the greatest AMERICAN DREAM, is it not?


  • What do I do if my landlord is in foreclosure? Should I pay rent ...

    www.avvo.com Research Legal Advice Foreclosure

    Pay your rent on time as usual. Just because the property is getting foreclosed, you still have to pay rent. You signed a contract to pay rent to the landlord because ...


  • How to Find Out if the House You're Renting is in Foreclosure

    www.ehow.com Personal Finance Real Estate Renters Rights

    It can be frightening to learn that the house you are renting is in foreclosure. Unfortunately, tenants are usually the last to find out and are left with little time ...


  • The House You're Renting is in Foreclosure - What do You do

    ezinearticles.com Real Estate Leasing Renting

    Nov 20, 2007 Tenants are often some of the last people to find out the house they are renting is going into foreclosure. The landlord often withholds this information ...


  • The Strategic Default Monitor

    www.strategicdefault.org

    Minnesotans who have struggled to make their mortgage payments will get new leverage for saving their homes beginning Aug. 1 under a law that tightens foreclosure ...


  • How do I write a letter explaining why I am buying a house within ...

    www.trulia.com/voices/Home_Buying/How_do_I_write_a_letter...

    How do I write a letter explaining why I am buying a house within close proximity of the current home I own. Is there a sample letter available?


  • House - Buy a House - House for Sale - House for Rent -

    www.house.com

    Find house you want for Sale Nationwide through House.com's free service. Millions of Houses to search from.

You're reading an article about If the House I Am Renting Is in Foreclosure, Do I Have to Pay Rent? and you can find articles If the House I Am Renting Is in Foreclosure, Do I Have to Pay Rent? this is url https://rentingahomes.blogspot.com/2013/11/if-house-i-am-renting-is-in-foreclosure.html,you may spread or copy and paste it if the article If the House I Am Renting Is in Foreclosure, Do I Have to Pay Rent? This is very beneficial to your friends, but do not forget to put the link If the House I Am Renting Is in Foreclosure, Do I Have to Pay Rent? as the source.

0 komentar


Posting Komentar