Tenant Rights During on a Foreclosure

[owiseone]

I rented a home in Tennessee 3 months ago and got a notice on the door from Bank of America within the first month. My landlord claimed that it was for insurance purposes since the house had been vacant for a few months and that there were no and had never been any issues with the house regarding the mortgage. The following month another notice was hung on the door, to which she said the same thing. A few days ago I received a letter from her mortgage company saying that the house was about to be foreclosed upon within 60 to 90 days and would then be handed over to HUD. When I questioned my landlord about this, she claimed that I don't understand anything about renting and that it was a non issue and that I was still required to pay rent. She has also claimed that she is doing a loan modification on the house so that even if there was an issue it would have absolutely no effect on me. My question is what my rights would be in this situation. Am I required to pay her, even though the house is about to be foreclosed on and if she actually was doing a loan modification (which nothing she has said up to this point has been true, so I am doubting that this is true, either) on the house, would that actually be able to reverse the foreclosure this far into the process? I have also read that in the state of Tennessee the landlord is required to keep the damage deposit in a separate account and notify me of it's location to which she has never done, but from what she claims if the 12 month lease that I sign is broken in any way I would never be getting that back. If anyone could help me in this I would greatly appreciate it, thank you.

 

[heracles87]

I don't know, most likely they will take the house from your landlord. Then the bank will have to try to legally evict you. If I were you, when it comes to that, just move out and consider it a lesson learned. The last thing as a renter you want on your credit record is an eviction judgement. Move out when the bank gives you your "notice to vacate" letter.

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[heracles87]

You are still required to pay your landlord too I would imagine. If what your landlord says turns out to be true and you stop paying, you'll be evicted and that's not something you want on your credit as a renter.

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[mightymoose]

Yes, you need to pay your landlord. The foreclosure does not effect you as a renter. If ownership changes then you pay rent to the new owner. If the new owner wants you out then you will receive notice to vacate with plenty of time to do so. If you fail to pay rent you will make things worse for yourself.

 

[army judge]

When (OR IF) the bank forecloses,you should approach them with your lease in hand.
Many times they'll offer you CASH to voluntarily leave.
How much? It depends how many more months are left on your lease. It can sometimes be a nice little sum of loot.
Sometimes they'll let you remain RENT FREE for 90 days. That 90 days was put in effect by a recent federal law.
Bottom line, after the foreclosure, or right now, contact the bank. Seek out the correct official, discuss, negotiate, compromise, win-win.
The last person I assisted in a situation like your (my1st cousin) walked away after 2 months rent free with $7,500, plist two months house sitting rent free while she found her next place. The bank also paid for her mover. She had 21 months left in a 24 month lease
When we started discussing the matter. We had a written agreement two weeks later. Always get it signed and in writing.

Good luck.