Similar issue as others – renting in a foreclosed home

[Nachoman]

My apologies for a similar topic that’s been discussed here plenty of times. My situation is slightly different, hence my request for opinions.

We just signed a 6 month lease starting in April and found out today that the unit is has a Notice of Default with a filing date of 2/4/08. Given that you usually have 3 months after the NOD to start the sale, I’m assuming that in May the lender can begin setting up a sale date. I doubt we’ll see the entire lease through to the end without being kicked out.

Now of course, this worries me since I just gave them first months rent and security deposit. Plus the prospect of being forced out so quickly after moving in is a tad annoying.

Any advice?

[temeculaguy]

No, the situation is the same, hence so will the advice. Figure out what the daily rent is, then figure out how much you have at risk (deposit and prepaid rent). Calculate the amount of days your deposit is worth, then let the landlord know that you will be moving on the day that you will be even, tell them in writing and include that the only reason is that the house is in foreclosure. You will only be out your hassle and moving expenses but at least you can plan it. I wouldn’t give them another dime at this point, you don’t have a ton of time left, in about three weeks the bank will set up the sale for at least thirty days out, so you can escape without losing money. Don’t try to profit from it or live rent free unless the L/L agrees to a reduced rent in writing and only after your sec deposit credit has been exhausted. That way you are being prudent and fair for a lease the L/L has already violated, if you ever ended up in front of a judge you will look like a reasonable person and not an opportunist. Save everything, including the proof that it is foreclousre so that you can show it to future landlords. Next time, check any potential rental for not only being in the foreclosure process but the liklihood of going into it. Check the price they bought it for, any refi’s or seconds and the market value, if they have less than 25% equity, keep looking. The few hours of research at the recorders office will be rewarded by not having to do this again.

[temeculaguy]

No, the situation is the same, hence so will the advice. Figure out what the daily rent is, then figure out how much you have at risk (deposit and prepaid rent). Calculate the amount of days your deposit is worth, then let the landlord know that you will be moving on the day that you will be even, tell them in writing and include that the only reason is that the house is in foreclosure. You will only be out your hassle and moving expenses but at least you can plan it. I wouldn’t give them another dime at this point, you don’t have a ton of time left, in about three weeks the bank will set up the sale for at least thirty days out, so you can escape without losing money. Don’t try to profit from it or live rent free unless the L/L agrees to a reduced rent in writing and only after your sec deposit credit has been exhausted. That way you are being prudent and fair for a lease the L/L has already violated, if you ever ended up in front of a judge you will look like a reasonable person and not an opportunist. Save everything, including the proof that it is foreclousre so that you can show it to future landlords. Next time, check any potential rental for not only being in the foreclosure process but the liklihood of going into it. Check the price they bought it for, any refi’s or seconds and the market value, if they have less than 25% equity, keep looking. The few hours of research at the recorders office will be rewarded by not having to do this again.

[temeculaguy]

No, the situation is the same, hence so will the advice. Figure out what the daily rent is, then figure out how much you have at risk (deposit and prepaid rent). Calculate the amount of days your deposit is worth, then let the landlord know that you will be moving on the day that you will be even, tell them in writing and include that the only reason is that the house is in foreclosure. You will only be out your hassle and moving expenses but at least you can plan it. I wouldn’t give them another dime at this point, you don’t have a ton of time left, in about three weeks the bank will set up the sale for at least thirty days out, so you can escape without losing money. Don’t try to profit from it or live rent free unless the L/L agrees to a reduced rent in writing and only after your sec deposit credit has been exhausted. That way you are being prudent and fair for a lease the L/L has already violated, if you ever ended up in front of a judge you will look like a reasonable person and not an opportunist. Save everything, including the proof that it is foreclousre so that you can show it to future landlords. Next time, check any potential rental for not only being in the foreclosure process but the liklihood of going into it. Check the price they bought it for, any refi’s or seconds and the market value, if they have less than 25% equity, keep looking. The few hours of research at the recorders office will be rewarded by not having to do this again.

[temeculaguy]

No, the situation is the same, hence so will the advice. Figure out what the daily rent is, then figure out how much you have at risk (deposit and prepaid rent). Calculate the amount of days your deposit is worth, then let the landlord know that you will be moving on the day that you will be even, tell them in writing and include that the only reason is that the house is in foreclosure. You will only be out your hassle and moving expenses but at least you can plan it. I wouldn’t give them another dime at this point, you don’t have a ton of time left, in about three weeks the bank will set up the sale for at least thirty days out, so you can escape without losing money. Don’t try to profit from it or live rent free unless the L/L agrees to a reduced rent in writing and only after your sec deposit credit has been exhausted. That way you are being prudent and fair for a lease the L/L has already violated, if you ever ended up in front of a judge you will look like a reasonable person and not an opportunist. Save everything, including the proof that it is foreclousre so that you can show it to future landlords. Next time, check any potential rental for not only being in the foreclosure process but the liklihood of going into it. Check the price they bought it for, any refi’s or seconds and the market value, if they have less than 25% equity, keep looking. The few hours of research at the recorders office will be rewarded by not having to do this again.

[temeculaguy]

No, the situation is the same, hence so will the advice. Figure out what the daily rent is, then figure out how much you have at risk (deposit and prepaid rent). Calculate the amount of days your deposit is worth, then let the landlord know that you will be moving on the day that you will be even, tell them in writing and include that the only reason is that the house is in foreclosure. You will only be out your hassle and moving expenses but at least you can plan it. I wouldn’t give them another dime at this point, you don’t have a ton of time left, in about three weeks the bank will set up the sale for at least thirty days out, so you can escape without losing money. Don’t try to profit from it or live rent free unless the L/L agrees to a reduced rent in writing and only after your sec deposit credit has been exhausted. That way you are being prudent and fair for a lease the L/L has already violated, if you ever ended up in front of a judge you will look like a reasonable person and not an opportunist. Save everything, including the proof that it is foreclousre so that you can show it to future landlords. Next time, check any potential rental for not only being in the foreclosure process but the liklihood of going into it. Check the price they bought it for, any refi’s or seconds and the market value, if they have less than 25% equity, keep looking. The few hours of research at the recorders office will be rewarded by not having to do this again.

[Nachoman]

Thanks for the reply,
So foreclosure is a valid reason to break the lease? Most people seem to encounter this after their lease transitioned to a month to month lease, whereas I’m right at the start of the lease. Given that the lease is a contract between me and the owner, I wonder what standing I have to break it due to foreclosure.

[Nachoman]

Thanks for the reply,
So foreclosure is a valid reason to break the lease? Most people seem to encounter this after their lease transitioned to a month to month lease, whereas I’m right at the start of the lease. Given that the lease is a contract between me and the owner, I wonder what standing I have to break it due to foreclosure.

[Nachoman]

Thanks for the reply,
So foreclosure is a valid reason to break the lease? Most people seem to encounter this after their lease transitioned to a month to month lease, whereas I’m right at the start of the lease. Given that the lease is a contract between me and the owner, I wonder what standing I have to break it due to foreclosure.

[Nachoman]

Thanks for the reply,
So foreclosure is a valid reason to break the lease? Most people seem to encounter this after their lease transitioned to a month to month lease, whereas I’m right at the start of the lease. Given that the lease is a contract between me and the owner, I wonder what standing I have to break it due to foreclosure.

[Nachoman]

Thanks for the reply,
So foreclosure is a valid reason to break the lease? Most people seem to encounter this after their lease transitioned to a month to month lease, whereas I’m right at the start of the lease. Given that the lease is a contract between me and the owner, I wonder what standing I have to break it due to foreclosure.

[(former)FormerSanDiegan]

Look at the terms of your lease. Does it say that you can break it if there is a NOD on the property ?
If not, I am positive that a judge would rule in favor of the owner for the rent owed.
Remember this is a NOD, not a NOT. What if they cure the default by paying up (or their rich uncle does it as a favor ? What if they are in a position to work out their loan with the lender. You still owe the rent either way.

I would worry, however, about getting my deposit back in your situation. Consider paying as late as you possibly can each month (while avoiding additional fees, if any). If they give you a 3-day notice, then deal with paying up. My guess is that if they are ultimately going to be foreclosed upon and if you make up some excuse why you are a couple weeks tardy they will not try to evict you.

[(former)FormerSanDiegan]

Look at the terms of your lease. Does it say that you can break it if there is a NOD on the property ?
If not, I am positive that a judge would rule in favor of the owner for the rent owed.
Remember this is a NOD, not a NOT. What if they cure the default by paying up (or their rich uncle does it as a favor ? What if they are in a position to work out their loan with the lender. You still owe the rent either way.

I would worry, however, about getting my deposit back in your situation. Consider paying as late as you possibly can each month (while avoiding additional fees, if any). If they give you a 3-day notice, then deal with paying up. My guess is that if they are ultimately going to be foreclosed upon and if you make up some excuse why you are a couple weeks tardy they will not try to evict you.

[(former)FormerSanDiegan]

Look at the terms of your lease. Does it say that you can break it if there is a NOD on the property ?
If not, I am positive that a judge would rule in favor of the owner for the rent owed.
Remember this is a NOD, not a NOT. What if they cure the default by paying up (or their rich uncle does it as a favor ? What if they are in a position to work out their loan with the lender. You still owe the rent either way.

I would worry, however, about getting my deposit back in your situation. Consider paying as late as you possibly can each month (while avoiding additional fees, if any). If they give you a 3-day notice, then deal with paying up. My guess is that if they are ultimately going to be foreclosed upon and if you make up some excuse why you are a couple weeks tardy they will not try to evict you.

[(former)FormerSanDiegan]

Look at the terms of your lease. Does it say that you can break it if there is a NOD on the property ?
If not, I am positive that a judge would rule in favor of the owner for the rent owed.
Remember this is a NOD, not a NOT. What if they cure the default by paying up (or their rich uncle does it as a favor ? What if they are in a position to work out their loan with the lender. You still owe the rent either way.

I would worry, however, about getting my deposit back in your situation. Consider paying as late as you possibly can each month (while avoiding additional fees, if any). If they give you a 3-day notice, then deal with paying up. My guess is that if they are ultimately going to be foreclosed upon and if you make up some excuse why you are a couple weeks tardy they will not try to evict you.

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