With thousands of homes foreclosing in todays market there are so many families being faced with having to pack up and move out with little or no notice. This situation is never an easy one but their are steps you can take to make this inconvenient and somewhat frustrating situation go a little smoother. Remember to always consult an attorney for any legal advice you may have because I am not one nor will I ever be.
First and foremost you cannot stop paying your rent. So many people are facing this issue today and the first question they always ask is “Do I have to keep paying my landlord rent?”. The answer is yes as long as you have a current lease. These lease is between you and the landlord not the landlord and the bank. What he does with the money once you turn it over to him is his problem. The argument remains that yes, you probably won’t see your security deposit again and that is why many people feel so scammed when this happens to them. Just know that you stop paying your rent during your lease the landlord does have the right to start the eviction process which in some situations can leave you with as little as three days notice to get out.
You most likely found out or will find out your home is foreclosing by a process server who delivers papers to your door looking for the landlord. Let him know that you are the tenants and you need to be notified of everything that is going on with the process. As the tenants you have legal rights and you want to make sure the attorney handling the foreclosure has your information on file and that they know the home is occupied by tenants. This will allow them to keep you informed of the process. If you have suspicions but haven’t been visited by the process server yet you can always go to your county courthouse and investigate what’s going on with the home. A liz pendis is public information and you have the right to obtain that info.
The next and most obvious thing you can do is start packing up your house and looking for a new one. You know it’s only going to be a matter of time until the home is repossessed by the bank so waiting until the last minute is a bad idea and could result in your sleeping in a hotel for a week or so. When you look for a new home in the area make sure to check the tax records and see if the home is owned by the same owner you currently were leasing form. It’s not uncommon for some landlords to own multiple houses within a one or two mile radius and be foreclosing on them all. Do your homework and make sure to put some type of clause in your next lease stating that if the landlord goes into default on his mortgage and does not notify you within 30 days you have the right to remain in the house until the end of the lease and not pay him/her any rent. That will pretty much guarantee that the landlord will at least keep you informed from the get go. You could also put a release clause allowing you to break the lease without penalty is this happens. Protect yourself and your family from this roller coaster of a market.