Off Topic: Foreclosure

[funmom91]

This is off topic but I need to know if I should be in panic mode. Okay so I moved into a house after having the baby and the landlord was really cool about my job, paying rent and price (she lives in another state). When I first talked to her she told me that she had to go through loan modification but she was still the owner of the house. I figured she would go through the process and be approved. However, three months down the line when I had been staying here notices to call the bank started coming in for the landlord and I alerted her and she stated that she was just going to let her home go into foreclosure and the bank had not alerted her yet as to when the occupants should be out. They know that I rent from her and they have my contact info on call but have not notified me yet. I was researching online and I saw that the bank will let you finish out your lease first or something like that. Does anyone know if this is something that I should be in panic mode about?

[CJWrite]

Originally Posted by funmom91

This is off topic but I need to know if I should be in panic mode. Okay so I moved into a house after having the baby and the landlord was really cool about my job, paying rent and price (she lives in another state). When I first talked to her she told me that she had to go through loan modification but she was still the owner of the house. I figured she would go through the process and be approved. However, three months down the line when I had been staying here notices to call the bank started coming in for the landlord and I alerted her and she stated that she was just going to let her home go into foreclosure and the bank had not alerted her yet as to when the occupants should be out. They know that I rent from her and they have my contact info on call but have not notified me yet. I was researching online and I saw that the bank will let you finish out your lease first or something like that. Does anyone know if this is something that I should be in panic mode about?

As a tenant, you do have certain rights. I do believe you can finish out your lease, but that typically varies from state to state.

The best thing you can do is contact a lawyer that specializes in landlord / tenant disputes. If you can't afford a lawyer, try contacting the bank directly.

[anng]

I don't know the laws, and I know that every area is different, but with a baby, I don't think the bank can randomly just kick out out without plenty of notice. Given that, I'm in Vermont. There are two houses out back in foreclosure. One went into foreclosure in the summer of 2009 and it's still in the process and sitting vacant. The other went into foreclosure in the fall of 2009 and it also is sitting vacant. It seems to me that with all the foreclosures going on, banks aren't in any huge rush. Plus, they told my neighbor when they discussed foreclosure vs. short sale that they'd rather have someone in the house for as long as possible because vacant homes are more likely to be targets for squatters and vandals, and house that has tenants is less likely to fall into disrepair.

[funmom91]

Originally Posted by CJWrite

As a tenant, you do have certain rights. I do believe you can finish out your lease, but that typically varies from state to state.

The best thing you can do is contact a lawyer that specializes in landlord / tenant disputes. If you can't afford a lawyer, try contacting the bank directly.

I have tried to contact the bank and they would give me no information. I was trying to see if they could tell me if I needed to move or whether I could apply for the house and they told me they couldn't discuss anything with me since I was not the account holder.

[funmom91]

Originally Posted by anng

I don't know the laws, and I know that every area is different, but with a baby, I don't think the bank can randomly just kick out out without plenty of notice. Given that, I'm in Vermont. There are two houses out back in foreclosure. One went into foreclosure in the summer of 2009 and it's still in the process and sitting vacant. The other went into foreclosure in the fall of 2009 and it also is sitting vacant. It seems to me that with all the foreclosures going on, banks aren't in any huge rush. Plus, they told my neighbor when they discussed foreclosure vs. short sale that they'd rather have someone in the house for as long as possible because vacant homes are more likely to be targets for squatters and vandals, and house that has tenants is less likely to fall into disrepair.

That sounds reassuring. Thanks

[mommy2onelittleboy]

Don't quote me on this, because law isn't my forte. But I think, by law, in most states you have the right to finish out your lease. You may want to contact a lawyer who specializes in your subject, since they'd have accurate information based on where you live.

[mitako]

It might depend on the state, but here in CA, if you are renting a house that the landlord forecloses, you do have protection from eviction. If you have a lease, you are normally allowed to finish that out. I believe they also will have to give you at least 90 days notice to move.

Check on the laws in your state. I wouldn't panic, but I would start keeping my eyes open for another place to live.

[Jflats]

This article should answer a lot of your questions. Also, it's rare that a bank will ever throw out a renter on a foreclosure. They will normally work with you and even offer you money to leave and you are no where near that stage.

Renter's Rights When Renting a Foreclosed Home | eHow.com

[Sloane Rossi]

Originally Posted by anng

Plus, they told my neighbor when they discussed foreclosure vs. short sale that they'd rather have someone in the house for as long as possible because vacant homes are more likely to be targets for squatters and vandals, and house that has tenants is less likely to fall into disrepair.

So so true. We have been looking at houses for a few months and some are foreclosures. We got to a house that was nice on the outside and was listed with a nice square footage. It was in a nice area, with all of the homes around it valued at 200K-300K (here, that gets you a nice place). It was TRASHED. Writing all over the walls and appliances, cigarette holes all over, the carpet was ripped up and stained, holes in the walls and cupboards, doors torn of cupboards. I actually felt bad for the bank. It had only been sitting for a few months, was in a nice area and the outside looked good, so I was totally shocked when I walked in.

There are lots of stories about people living in foreclosed homes for years, so I wouldn't be in panic mode yet. I think most states have laws that require them to give you at least a month or two notice before you have to vacate. Contacting a lawyer is a good idea if you have the money.

[anng]

Originally Posted by Sloane Rossi

So so true. We have been looking at houses for a few months and some are foreclosures. We got to a house that was nice on the outside and was listed with a nice square footage. It was in a nice area, with all of the homes around it valued at 200K-300K (here, that gets you a nice place). It was TRASHED. Writing all over the walls and appliances, cigarette holes all over, the carpet was ripped up and stained, holes in the walls and cupboards, doors torn of cupboards. I actually felt bad for the bank. It had only been sitting for a few months, was in a nice area and the outside looked good, so I was totally shocked when I walked in.

There are lots of stories about people living in foreclosed homes for years, so I wouldn't be in panic mode yet. I think most states have laws that require them to give you at least a month or two notice before you have to vacate. Contacting a lawyer is a good idea if you have the money.

One of the houses behind us - teens broke into and held a rave. They apparently urinated all over the place, smeared feces on the walls, smashed up the sheetrock, broke windows and doors, destroyed the pool, there was graffiti all over the place. Police were called, but not much came of it because the former homeowner's son was apparently the ringleader and she'd already filed bankruptcy.

In the end, I've never seen the inside, but my husband's coworker took a tour. Pipes hadn't been drained and no one thought to turn the water off, so the pipes in the walls froze and burst and the line from the house into the septic tank frozen and burst and raw sewage leaked all over the basement floor. I really think the house is too far gone to save. Whoever does eventually buy it for auction would be better off demolishing it and putting the house of their dreams on the acre instead.