The house i'm living in is being foreclosed. do i still pay rent? the owner, i believe, is pocketing the money?

i would never had known it was in the process of foreclosure if they didn'tt know he didnt live there. i did find out later that he got a notice also at his other residence. he did not contact me to let me know he was having a problem or anything. the notice mentioned that nothing had been paid in 4 months! i feel like if i give him the rent, he'll just pocket it. i'm pretty sure i wont be getting my deposits back. i know he could sue me for not paying rent, but maybe i can counter sue him for not notifying me of the foreclusure. since i wont be getting my deposits back, the rent i wont be paying him will be good for another deposit on a house. what do you think? i know its not legal to not pay rent, but in this situation, why give him any money?

Why "give him money"? You are not giving him anything.

You are a renter, who owe rent. He can sue you for the rent.

It is none of your business what he does with his money.

Your idea of sueing him over his foreclosure will not get anywhere, he does not have to tell you, it is none of your business and you are not part of that contract.

Contact the landlord and ask what's going on with the foreclosure (like when it's going to be final and you'll have to move out, how to handle getting your deposit back, etc.). You do owe the money for the time you're in there, regardless of the owner's financial situation.

And, what's it to you if he's pocketing your rent money? It's still his property and he can throw it in the street if he wants to. His financial situation is none of your concern, except for the fact that he is about to be foreclosed on and you won't be living there pretty soon.

As long as he still owns it and you are living there, you owe him the rent. He is not legally required to notify you about the foreclosure.

It takes AGES for financial institutions to reclaim a house from a homeowner once he/she stops paying the mortgage. It takes a LOT less time for the owner to evict a tenant for the non-payment of rents. Despite the fact that your landlord sounds a little shady you might try talking to him to see how much time he thinks there is before the bank fully forecloses on him. He may be willing to cut you a break on the rent since he's losing the house anyway. But don't forget, he's well within his right to demand that you continue paying your full rent up to the day that the house is repossessed since it's technically his until that day.

All landlords pocket rent money, that's why they bought rental properties in the first place. If you fail to pay rent, then you create problems for yourself. If the house is foreclosed, there is a good chance you'll have to move, and you may need to take legal action to get your deposit back, but at least you won't be guilty of any wrongdoing. If you don't pay your rent, you can get sued, your late rent can go on your credit report, and you can have trouble finding another place to rent with a history of not paying on time.

The best thing to do is to pay your rent because that way none of the BS with the whole situation will fall on you.

You are renting from him, if he spends that money on crack, its not your business. If he gets foreclosed on and you are forced to move, you may have a case but until then, you should pay up.

the fact that the home is in foreclosure has nothing to do with the fact that you must still pay rent. his financial troubles do not give you a "get out of jail free" card when it comes to living up to your obligations. and who cares if he's "pocketing" the money! couldn't that apply to all landlords, when you think about it? legally, he did not and does not have to notify you about the foreclosure. you would be served with notice to vacate when the title changed hands (at the end of a foreclosure). usually, this is at least 30 days. if i were you, i would start looking for somewhere else to live, as you will be out on your fanny.

col. kurtz, what you said about the lease being part of the sale would be correct if it was a conventional sale. however, this is a foreclosure. in a case like that, the lease is not part of the sale. the lease is void in foreclosures or short sales, and a notice to vacate is posted.

Until ownership changes, you are still bound by the existing lease. You may be facing eviction if the property forecloses. However, you do have rights. See the article in "Source(s)" for more info. The following is excerpted from that article:

Renters in Foreclosed Properties Lose Their Leases

Most renters will lose their leases upon foreclosure. The rule in most states is that if the mortgage was recorded before the lease was signed, a foreclosure will wipe out the lease (this rule is known as â€œfirst in time, first in rightâ€). Because most leases last no longer than a year, it's all too common for the mortgage to predate the lease and destroy it upon foreclosure.

That doesn't always mean the lease-holding tenants have to leave immediately -- but those who remain join the ranks of month-toâ€“month renters, all of whom can be terminated with proper notice, usually 30 days. And the new owners tend to move quickly to terminate, giving as little notice as is legally possible (sometimes no more than three days).

Tenants who refuse to leave face an eviction lawsuit, for which they usually have no legal defense. The impact of an eviction on a tenant's ability to find future housing can be devastating. No law prevents a future landlord from automatically rejecting tenants with evictions on their record, even when those tenants were the innocent victims of a foreclosing bank.

There are some notable exceptions, however, to this grim scenario. Tenants who participate in the federally financed Section 8 program will see their leases survive, as will tenants in New Jersey, New Hampshire, the District of Columbia, and, as of the end of November 2007, Massachusetts. In these states, new owners cannot evict lease-holding tenants unless the tenants have failed to pay the rent or violated any other important lease term or law. Tenants in other states who live in cities with rent control â€œjust causeâ€ eviction protection may also be protected.

What Can a Foreclosed-Upon Tenant Do?

Renters whose states follow the â€œfirst in time, first in rightâ€ rule, where a lease can be wiped out by a foreclosure if the mortgage was recorded before the lease, will not be able to convince a court to change that rule. But tenants who learn that their new landlord is a bank can at least lessen the financial consequences by suing the former owner. Hereâ€™s how it works.

After signing a lease, the landlord is legally bound to deliver the rental for the entire lease term. In legalese, this duty is known as the â€œcovenant of quiet enjoyment.â€ A landlord who defaults on a mortgage, which sets in motion the loss of the lease, violates this covenant, and the tenant can sue for the damages it causes.

Small claims court is a perfect place to bring such a lawsuit. The tenant can sue for moving and apartment-searching costs, application fees, and the difference, if any, between the new rent for a comparable rental and the rent under the old lease. Though the former owner is probably not flush with money, these cases wonâ€™t demand very much, and the judgment and award will stay on the books for many years. A persistent tenant can probably collect what's owed eventually.

The landlord should have respect enough to let you know in advance if you have to move, to give you time to prepare and find another place.

I wouldnt pay. I would also be looking for another place to live ASAP.

I've been dealing witht he same thing...i've aske this question 3 times now...good luck to you!

http://answers.yahoo.com/question/index;_ylt=Ag5S3eqkXdrrJm.blQBwYKrsy6IX;_ylv=3?qid=20081020071404AAIazxs

if and when it is foreclosed, the ownership will pass to the bank and your landlord will no longer be your landlord. i hope that the conversation you are having with us is useful to you and i think it would be more useful if you had the same conversation with your landlord and the bank that has assumed ownership.

That is a delicate situation. The biggest problem is you don't know what is going on. Perhaps the bank would want you to remain as a tenant, therefore paying your rent is a good thing. On the other hand, if you have to move in any case then maybe saving your rent money towards a deposit on your next place is a good idea. You need to find out what is going on-maybe there is a work-out in the works or maybe the bank wants to hang on to good tenants, so tell the landlord that if he wants to see his rent he is going to have to keep you informed. Obviously it would be futile to start eviction proceedings against you, when he is about to be evicted himself!

Paul is right you chiseler! MYOB and that includes paying your rent !!
You should, however, start talking about your deposit with him. The new owner, bank, will contact you soon enough. If you have a Lease, their ownership is "Subject to that Contract" in other words the contract "runs" with the land and they cant kick you out until your lease is up. They may pay you, "key money", to get you to leave, but otherwise you're ok 'til then. In CA the owner has to give you 60 days notice, most others its only 30.

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