Here's the scenario. A co-worker of mine just got a notice form his landlord. His lease is up in July and his landlord just give him notice stating he has 60 days to vacate. This tells me his landlord has defaulted on the mortgage and is falling into foreclosure.
How can he find out if that is the case? It is my understanding that if in fact the landlord has defaulted on her mortgage she can not continue to charge him rent for the remaining months and she is responsible for repaying any months rent in which she did not make her mortgage payment.
You should be able to go to the county recorders office and see if a notice of defult was filed. You'll need the owners name and some basic property information, apn, etc.
So just because the Owner wants the property back he is behind in payments?
Leases are biased to wards the property owner. He might need to move back in. Sucks to go early though. Have your coworker read the lease agreement and see if 60 days is enough to break the lease early.
My co-worker has lived in the property for 4 years. Always paid his rent on time. Landlord out of the blue shows up and says "You need to vacate in 60 days."
Here's the scenario. A co-worker of mine just got a notice form his landlord. His lease is up in July and his landlord just give him notice stating he has 60 days to vacate. This tells me his landlord has defaulted on the mortgage and is falling into foreclosure.
How can he find out if that is the case? It is my understanding that if in fact the landlord has defaulted on her mortgage she can not continue to charge him rent for the remaining months and she is responsible for repaying any months rent in which she did not make her mortgage payment.
The landlord has an obligation to provide the property described in the lease. The fact that he may not have paid the mortgage for months has nothing to do with the tenant.
If, during the time of the rental, the tenant was forced out by foreclosure, during the time of the lease / rental period, then he has a case against the landlord for breach of contract.
The fact that the lease is up ad he is ordered to vacate has nothing to do with any questions regarding the status of the property.
I'm pretty sure that the landlord could be required to pay something for damages resulting in him/her causing a breach in the contract.
A call into the county housing authority will get him all the answers he needs.
If the landlord was going to lose the house in foreclosure he wouldn't want to kick out your friend, he would want to try to keep on collecting rent....why would he want LESS money?
Lots of landlords who are in default will try to get rent in advance, and take off with that money and the security deposit. "Pay 3 months in advance and get 3 months free!"
Maybe the landlord needs to move back in! His own home may be in default.....LOL
And if the owner isn't making the payments, why should the tenant get to live for free? He is still getting the same house he paid for.......once a tenant finds out that foreclosure is imminent then he should stop paying. The house will get a notice posted on it.
If the landlord was going to lose the house in foreclosure he wouldn't want to kick out your friend, he would want to try to keep on collecting rent....why would he want LESS money?
And unless it's a piece of rental property with a specific "assignment of rents" recorded against it, the owner can collect rent up until the time the property sells at auction.
And GENERALLY (each state is specifc), a lease agreement is junior in priority to any Trust Deed/Mortgage.
When a piece of property is foreclosed on, the lease agreement (irrespective of term, remaining term or when the lease was signed), is terminated, the same as any junior/second mortgage would be too.
Many people mistakenly believe since theysigned a 2-year lease agreement; and the residence is foreclsoded on within a year - they are entitled to remain atthe property until the lease term expires.
In CA the landlord has to give a 30 day notice to vacate, NO reason needed unless it is a rent control area/city. If the tenant has been onsite for 12 months, then it is a 60 day notice. NO reason needed, as the landlord OWNS THE PROPERTY!
In most cases landords want another 6 month or longer lease if a lease has expired, but if a tenant is about to move, they will generally permit a person to rent month to month for 1-2 more months. Moveouts cost landlords MONEY, so they must have a good reason for wanting him out.
You asked about a foreclsoure scenario, which is starkly different than regular landlord/tenant law.
first thing to do, in that case, is to review the lease agreement and find out what the termination provisions say. If I have to guess, it will say "at will" upon proper notice.
If he has a valid lease, the landlord probably can't boot him out unless he has violated terms. You need to read the lease carefully.......even the fine print.
Anyone who is renting or about to rent, you can file a notice to be notified on a property at the county. This will include you on the list to receive notices, defaults, etc...
What do I need to do to do this?
I'm making a move to AZ, and going to be renting until I figure out where I want to land permanently. I know someone who has been through the scenario of being booted because the mortgage went into default - I don't want to go through that, or at least be prepped to cut a deal with the bank to buy the place myself.
I leased a bar years ago from a jerk I used to work for running a huge bar. After a few years he stopped paying his mortgage and the bank was going to forclose. I went to the bank and cut a deal with them to pay rent directly to them. They weren't in the renting business but were more than happy to have payments coming in on the property again. Then my landlord came in to collect the rent again(which he wasn't giving to the bank) and I threw him out.hand
yeah this stuff is so FRIKIN fun like I posted the other day we got our lovely the house you are in will be at foreclosure auction on the 30th.
I will be sending the list of my landlords before I sign anything.
we are off to look for houses today
Would someone please tell me why a landlord can run your credit but as a renter we cant run theirs?
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