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Q: I have been renting a wonderful house for the past 8 months and really like the neighborhood. My landlord was really nice when I first looked at the place, but I have not heard from him for the past two months. No reason I should, since everything was working okay. Today I came home to find a sheriff’s sale notice stuck to the front door. The landlord’s number is disconnected and I don’t know what to do. Who should I call? What can I do? What did he do with my rent money?
A: First, slow down and take a deep breath. It probably won’t make you feel any better to know that thousands of folks across the country are facing the same dilemma: what to do when your landlord fails to pay the mortgage even though you are paying rent on a regular basis. It has become a common problem.
It is important that you not panic. Let’s discuss the things you can do which are likely to be of help. It is also a good plan to avoid doing stupid stuff which might make you feel better for a minute but will not improve your situation. (Example: tearing something up.)
Before you do anything else: decide what you want. Given this new turn of events, re-consider your options carefully before you decide what steps you will take.
Specifically:
a. do you want to stay through the term of your lease?
b. would you be just as happy to move on to some other option now that you have been given the chance to “break your lease”?
c. do you just want the time to carefully pack and move?
If the sheriff’s notice does not say when the sale will take place, then get that information from the local sheriff’s department so you have an idea how much time you have to take whatever action you have chosen.
Next, check the landlord tenant laws in your state to see what recourse you have, under the law, if the landlord goes into foreclosure. These laws should be readily available, perhaps on your Attorney General’s site.
Then check the foreclosure laws in your state (use google “ _______ state foreclosure laws”). You are looking specifically for notifications required of tenant occupied properties when a foreclosure is pending. Some states require notice be provided to the “unnamed tenants” of a property as part of the foreclosure process in order to avoid exactly your situation. This will be particularly important if you want to stay during the remainder of the leased term.
You need to get some information about the property in order to proceed further. You can start with the information on the sheriff’s notice which will give you some details to get the other information you must have. You will likely need to talk to the county clerk’s office, perhaps the tax assessor and as well as do some on-line research. You will need:
a. the correct names on the title
b. lender or holder of note
c. insurer of the note (if it is Fannie Mae or Freddie Mac you are lucky)
d. attorney who is representing the lender
Notify the sheriff’s department, the attorney, the lender (if you can find a number) and the insurer that you are residing in the home, as a tenant. Be prepared to show that rental payments are current.
If the insurer is Fannie or Freddie, both have implemented programs which will allow tenants to continue to reside in the homes and rent directly from Fannie or Freddie during the time they are being marketed for sale to a new buyer. (Are you up for that?)
Pull yourself together and make a ‘new’ decision based on adjusted circumstances.
**I did not forget that you asked what he did with your rent money. Probably wine and loose women. Doesn’t matter, what is your next step?
Oh, by the way, don’t send off next month’s rent payment just yet.
Copyright © 2009, Home Ownership Matters, LLC. All Rights Reserved.
"Answer Book in a Foreclosure Climate" by Mildred Wilkins, available in 2009 from www.DovePublishingHouse.com.
(Please e-mail Heather at homeownershipmatters@gmail.com with any questions, comments, or concerns you might have. We appreciate all feedback, comments, and especially your questions. Don't be shy!)
A: First, slow down and take a deep breath. It probably won’t make you feel any better to know that thousands of folks across the country are facing the same dilemma: what to do when your landlord fails to pay the mortgage even though you are paying rent on a regular basis. It has become a common problem.
It is important that you not panic. Let’s discuss the things you can do which are likely to be of help. It is also a good plan to avoid doing stupid stuff which might make you feel better for a minute but will not improve your situation. (Example: tearing something up.)
Before you do anything else: decide what you want. Given this new turn of events, re-consider your options carefully before you decide what steps you will take.
Specifically:
a. do you want to stay through the term of your lease?
b. would you be just as happy to move on to some other option now that you have been given the chance to “break your lease”?
c. do you just want the time to carefully pack and move?
Make a decision, then move to action.
If the sheriff’s notice does not say when the sale will take place, then get that information from the local sheriff’s department so you have an idea how much time you have to take whatever action you have chosen.
Next, check the landlord tenant laws in your state to see what recourse you have, under the law, if the landlord goes into foreclosure. These laws should be readily available, perhaps on your Attorney General’s site.
Then check the foreclosure laws in your state (use google “ _______ state foreclosure laws”). You are looking specifically for notifications required of tenant occupied properties when a foreclosure is pending. Some states require notice be provided to the “unnamed tenants” of a property as part of the foreclosure process in order to avoid exactly your situation. This will be particularly important if you want to stay during the remainder of the leased term.
You need to get some information about the property in order to proceed further. You can start with the information on the sheriff’s notice which will give you some details to get the other information you must have. You will likely need to talk to the county clerk’s office, perhaps the tax assessor and as well as do some on-line research. You will need:
a. the correct names on the title
b. lender or holder of note
c. insurer of the note (if it is Fannie Mae or Freddie Mac you are lucky)
d. attorney who is representing the lender
Notify the sheriff’s department, the attorney, the lender (if you can find a number) and the insurer that you are residing in the home, as a tenant. Be prepared to show that rental payments are current.
If the insurer is Fannie or Freddie, both have implemented programs which will allow tenants to continue to reside in the homes and rent directly from Fannie or Freddie during the time they are being marketed for sale to a new buyer. (Are you up for that?)
Pull yourself together and make a ‘new’ decision based on adjusted circumstances.
**I did not forget that you asked what he did with your rent money. Probably wine and loose women. Doesn’t matter, what is your next step?
Oh, by the way, don’t send off next month’s rent payment just yet.
Copyright © 2009, Home Ownership Matters, LLC. All Rights Reserved.
"Answer Book in a Foreclosure Climate" by Mildred Wilkins, available in 2009 from www.DovePublishingHouse.com.
(Please e-mail Heather at homeownershipmatters@gmail.com with any questions, comments, or concerns you might have. We appreciate all feedback, comments, and especially your questions. Don't be shy!)
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