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We just found out the house we're renting is under forclosure! Any advice??

We moved into the rental on March 15, on May 5th we received a notice from the mortgage company's attorney. Landlord has until the end of August to get house out of forclosure. We arent sure what to do, move out now or wait until August???
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If the house is in preforeclosure or foreclosure, you no longer owe rent until after the house has been foreclosed, you will receive letters in the mail about it. After the Sheriffs sale, a bank representative will come to your house and either offer you Cash For Keys $500-$2500 to move out in 2-4 weeks, or you can show your lease and start paying the monthly amount on the lease, till either a buyer gives 90 day notice for you to move out or till end of your original lease. Hope this helps.

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I'm by no means an expert, but I was under the impression that even if your landlord loses the house to foreclosure, that you would still be able to stay in the house. The rule prior to 2009 was that the tenant would have to move out if the owner of their house went into foreclosure, but Obama signed a protection of tenants in foreclosure act about a year ago.

So, I think that even if your owner goes into foreclosure, the new owner of the property (bank, most likely), still will honor your lease until it is up. It sounds like the only provision is that if someone buys the house from the bank and wants to move into it, then they can give you 90 days notice that they will be terminating the lease.

Here's a good article that I used when helping a friend in a similar situation. I don't have any good advice for how that turned out as it is ongoing, but here is the reference none the less. http://www.nolo.com/legal-encyclopedia/article-30064.html

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You can stay in the house way past August. The house has not even been foreclosed yet. It is in preforeclosue. Foreclosures are backed up so it may take several months for the foreclosure and you can follow the public records just by calling the local courthouse and asking for the web address and type in owners name. The Foreclosure will take months, depending on how backed up your area is. Then you still have the 90 day from time the bank knocks on your door after the sheriff sale or till then end of your lease. No rent due, till bank comes knocking. The owner will want the rent, but you do not have to pay it as he is not paying the mortgage.
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We signed a 6 month lease, beginning in April, so in August the house will go into forclosure, the end of our lease is September. What your saying is that we will not have to pay rent from August to September or starting immediately? We still have a lease, wouldnt that be breaking the lease? I want to do the right thing and Im hoping that we get to stay in the house longer than September, but I dont want to give the landlord more money than we should. Thanks for your advice! I greatly appreciate it

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intrest rates are low, and there is alot of money out there for buyers. There are even some loans that will pay 3% of the 3.5% you need. Go get prequalled, call the atty back and make an offer to buy the house. If you don't know how much to offer call a realtor have them run comps in the area. You might be pleasantly surprised!

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MY HEART GOES OUT TO YOU.I JUS HAD THE EXACT SAME THING HAPPEN TO ME. I RENTED A BEAUTIFUL NEW TWO STORY HOME FROM A YOUNGER COUPLE. HE WAS IN THE OIL FIELD AND WAS ABLE TO BUY THE HOME A FEW YRS AGO. NOW WITH THE ENCONOMY THE WAY IT IS HE COULD NOT MAKE HIS PAYMENTS. I LOOKIN TO MOVE TO GJ AND JUS HAPPENED TO DRIVE BY AND SEE THE HOME.I CALLED THE COUPLE AND THEY CAME TO SHOW ME THE HOME,IT WAS A NIGHTMARE ON THEINSIDE THEY WERE ALCHOLICS WHO FOUGHT PROFUSLEY. FORSOME STUPID REASON I RENTED THE HOME AND THEY PROMISED TO HAVE ITALL CLEANED UP.WELL WHEN Y FAMILY AND I ARRIVED WITH THE MOVEING TRUCKS ,WE ENTERED THE HOME AND IT WAS JUS AS THEY HAD LEFT IT.I SWEET TALKED THE GUY INTO SIGNING AN ITEMIXED LIST OF ALL THECLEAN UP I HAD DONE.I STILL HAD TO PAY A 1,200 DOLLAR DEPOSIT. 2MTHSLATER I NOTICED PEOPLETAKEING PICS OF THE HOME.IT WAS THE BANK. THE HOME HAD BEEN FORECLOSED.THEY THE OWNERS DENIED IT AND FOR THE NEXT TWO MONTHS NOTICES CAME AND THEN A HAND DELIVERED AUCTION DATE. I WAS FORTUNATE ENOUGH TO B ABLE TO RENT ANOTHER HOME UP THE ROAD AND MOVED. I HIRED A CLEANING CO. TO CLEAN FOR ME WHEN I MOVED OUT,BECAUSE THAT IS THE TYPE OF PERSON THAT I AM.I WASDENIED MY DEPOSIT,AND IGNORED. WELL LAST MONTH I TOOK THEM TO COURT AND I WON.ITS WRONG AND ILLEGAL TO DO INNOCENT PEOPLE THIS WAY. SO MOVE,AND SUE,HAVE ALL OF UR PROOF. GOOD LUCK!~ MS.TREA PITTMAN

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MY HEART GOES OUT TO YOU.I JUS HAD THE EXACT SAME THING HAPPEN TO ME. I RENTED A BEAUTIFUL NEW TWO STORY HOME FROM A YOUNGER COUPLE. HE WAS IN THE OIL FIELD AND WAS ABLE TO BUY THE HOME A FEW YRS AGO. NOW WITH THE ENCONOMY THE WAY IT IS HE COULD NOT MAKE HIS PAYMENTS. I LOOKIN TO MOVE TO GJ AND JUS HAPPENED TO DRIVE BY AND SEE THE HOME.I CALLED THE COUPLE AND THEY CAME TO SHOW ME THE HOME,IT WAS A NIGHTMARE ON THEINSIDE THEY WERE ALCHOLICS WHO FOUGHT PROFUSLEY. FORSOME STUPID REASON I RENTED THE HOME AND THEY PROMISED TO HAVE ITALL CLEANED UP.WELL WHEN Y FAMILY AND I ARRIVED WITH THE MOVEING TRUCKS ,WE ENTERED THE HOME AND IT WAS JUS AS THEY HAD LEFT IT.I SWEET TALKED THE GUY INTO SIGNING AN ITEMIXED LIST OF ALL THECLEAN UP I HAD DONE.I STILL HAD TO PAY A 1,200 DOLLAR DEPOSIT. 2MTHSLATER I NOTICED PEOPLETAKEING PICS OF THE HOME.IT WAS THE BANK. THE HOME HAD BEEN FORECLOSED.THEY THE OWNERS DENIED IT AND FOR THE NEXT TWO MONTHS NOTICES CAME AND THEN A HAND DELIVERED AUCTION DATE. I WAS FORTUNATE ENOUGH TO B ABLE TO RENT ANOTHER HOME UP THE ROAD AND MOVED. I HIRED A CLEANING CO. TO CLEAN FOR ME WHEN I MOVED OUT,BECAUSE THAT IS THE TYPE OF PERSON THAT I AM.I WASDENIED MY DEPOSIT,AND IGNORED. WELL LAST MONTH I TOOK THEM TO COURT AND I WON.ITS WRONG AND ILLEGAL TO DO INNOCENT PEOPLE THIS WAY. SO MOVE,AND SUE,HAVE ALL OF UR PROOF. GOOD LUCK!~ MS.TREA PITTMAN

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I hope your deposit that Trea Pittman paid was not a cleaning deposit. If it was, it should be returned. New owners can basically ask you to leave. The new owners are the ones you speak with regarding staying and fullfilling the lease. Anything you signed with the previous owner is null and void once a bank takes over the home. He/They have lost all rights and ownership to the house. The bank owns the house until someone buys it. Then you must deal with the new owners. Suing the previous owner will most likely do no one any good but small claims may help you retrieve your deposit back, and buy some time to find another place.

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my suggestion for you is to contact the bank, i have seen this many times they ( the bank ) will offer you a check of a lump sum and give you bout 30days to move or you can just live rent free, but the thing with this is that the Landlord still owns the property meaning he/she is entitled to rent. Contact the bank and go from there.

- Best of luck

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