bmarum, this is a solid concern. I discussed my landlord’s intentions before I signed my lease. He is a professional real estate investor since he started buying foreclosures in San Diego in the early 1980’s and has deals in various US cities and in Mexico. He seems very savvy, but could be overleveraged; how can one ever really know another person’s finances? So we put a clause in our 2 year lease that says if he is foreclosed, he reimburses us for some costs.
Before I signed my 2 year lease, I consulted with tenant attorney Steven Kellman. He explained if this house is sold, the new owner must honor the lease. If this house is foreclosed, my fate hangs on the layering of lease vs. loan: the most recent wins. If the lease was signed, then he refinanced, the lease is in effect despite a foreclosure. If the lease was signed after his last refinance, a foreclosure means I am booted too.
But Mr. Kellman told me if we need to move for any reason to break our lease, or a foreclosure or anything happens, we should stop by to see him, and he can help us out. This guy is as passionate about tenant rights as I am about the housing bubble.
Any renters out there, jot down this link for the Tenant Legal Center. It is a low cost legal service, so expect to be treated like just another of their low income clients, but once you get in to see Mr. Kellman, he gives you all the time you need. The guy knows tenant rights, is energized about it, and really nice. And he doesn’t even know I keep recommending him, unless for some reason he found piggington.
