Tenants Refusing To Pay After Sheriff's Visit

[quixoticduo]

My husband and I own two rental properties in Iowa, with prospective outstanding mortgages of $65,000 and $75,000. My husband has an outstanding debt of $7,000 from 2008 and the creditor took us to court and put a lien against both properties. Yesterday, the sheriff went to each of our tenants and served notice that they must move because both properties are going to auction in late May in order to satisfy this outstanding $7,000 debt. This was news to us because we were never served! I spoke with the attorney of the creditor to try and make a deal to make payments on the $7,000 but he said the creditor would not allow it. He also informed me that whoever purchases the properties at auction would be responsible for paying off the mortgages before they would own the properties since the mortgage company is the primary property title holder. Since both properties are worth significantly less than what we owe on them, I have very high doubts that anyone will purchase these properties at auction. But the tenants are scared that they must leave and are refusing to pay their rents. They are all bound by leases, but are the lease terms void when the sheriff serves them with notice about an auction? Is there any way that I can stop this auction? And if not, what can I do to prove to the tenants that they are not in danger of being kicked out by new owners?

 

[army judge]

Your tenants have a leasehold.
They are not required to move.
Who ever purchases the property, has to honor their leases.
Until the property is purchased, you are the landlord.
The tenants are required to pay their rent to you.
When a new owner is established, their lease payments go to the new owner.

The deputy shouldn't have said anything to your tenants.
What he said is inaccurate.
You should speak to the high sheriff about the deputy's behavior.

You should hire an attorney.
You may have been served prematurely.
You might want to resist what could be an illegal takeover.
The deputy might be in cahoots with a carpetbagger.
Hire an attorney or speak with one about your options.


Sent from my iPhone using Tapatalk

 

[jharris352]

There is something significantly wrong. You need to file a Motion for Injunctive relief to stop the sheriff's sale. First, are you SURE the Sheriff visited them? I haven't looked at your state but in most states the tenants can not be evicted until after the sale. That only makes sense. Secondly, the Mortgage company has control over the property as they are in first lien position and so there shouldn't be a sale at all. The best that a judgment creditor can do is to attach a junior lien to the property. They can not make your tenant move.

I would contact the lender and put them on notice of what is happening. This infringes upon their rights as first lien holder and puts their income at jeopardy. I think they will help you.

If not you need an attorney.