Do I have to pay rent on a property that is in foreclosure / short sale?
I have lived in 2 condos in the same neighborhood and both of them are in foreclosure! The first unit the owner did not want to give me back the deposit and would not return any of my calls. I then stopped paying her rent and have not heard from her since. We moved out because we recieved court documents that the bank was giving the property back to the owner. So I move, I have to pay another deposit and I go with a real estate agent assuming I would be safe from a foreclosure. I explained to them my situation with the previous landlord and told them that I did not want to have to deal with another foreclosure, (being that the bank can kick you out with a 48 hour notice) So after living in the new condo for 2 weeks (AT A HIGHER RENT RATE BY THE WAY) I get served papers that the property is in foreclosure. I call the real estate agent and they tell me its a short sale. STILL WHY IS THE CURRENT OWNER POCKETING MY RENT MONEY!? I am beyond irrate, I told them I did not feel comfertable throwing away my money and until the situation was handled I would not pay them rent. They said that if that was the case they would evict me. Can they do this and what rights do I have? Moving is not cheap and it is a hassle! I am tiered of people taking my money and leaving me stuck with moving expenses!
No one is taking your money, you have no legal right to live in the property and not pay rent. This is you trying to steal the landlords money, not the other way around. They can evict you, and of course collect what you are trying to steal and the legal costs.
June 2nd, 2010 at 11:33 pm
If you are living there, you have to pay rent. You aren’t entitled to live anywhere for free.
References :
June 2nd, 2010 at 11:57 pm
If the property is in short sale then the owner is not is possession. You got screwed over. My advice is move to an area with a very low foreclosure rate or buy a condo. In the economy, you buy a condo or a house easily sometimes for just as much rent as you are paying. Best of luck.
References :
June 3rd, 2010 at 12:33 am
The answer greatly varies by state, most states allow you to put the rent money in an escrow account if the situation is far enough along. Just because a property is facing foreclosure, this does not mean you can stop paying rent, they could still pay it off after-all. The only time you can stop paying rent, this is when the property leaves the original owners hands, even then it’s tricky and depends on the language of your leasing agreement.
References :
June 3rd, 2010 at 1:14 am
Been there but been on a different side – we sold our townhouse to a broker who essentially skimmed money using unwitting renters and not following through on the sale. They are pocketing money because they need it and they can get it. My bet is that the realtor knew but thought they could make some money while the property was foreclosing. Stop paying is my suggestion. It’s not the right thing to do, but well, you’ve probably been scammed and you need to get out of there with whatever money you have. I wouldn’t turn over another cent. You likely won’t get any money back from them for your deposit. Right now foreclosure are rampant. I’d avoid a condo if I were you.
References :
June 3rd, 2010 at 1:37 am
You signed a contract to pay rent for the right to live there. No matter what is going with the property ownership, you made a commitment.
By the same token, I am not sure that you can be evicted of you can show receipt that your rent has been paid for any period, although this may vary by state. In other words, if your rent paid to the end of the month, I don’t think the bank can toss you out. If they can, you are still owed for money paid and can sue the bank and prior owner to recover. Also, it is not to their advantage to have the units empty as this creates a void which undesirable elements will quickly fill and destroy the value of the property.
References :
June 3rd, 2010 at 2:23 am
No one is taking your money, you have no legal right to live in the property and not pay rent. This is you trying to steal the landlords money, not the other way around. They can evict you, and of course collect what you are trying to steal and the legal costs.
References :