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Renting home suspected to be in preforeclosure

Posted on: 12th Jan, 2011 10:12 am
Not sure if this was the right forum to post in, but none of the others seemed to fit either....

Long complicated story short, due to some health issues in November, I moved into a home owned by a good friend. Didn't know how long I would need to be there, so didn't sign a lease. Discovered after I moved into friend's house that they own it (as she put it) "in name only" -- meaning, the bank has kind of taken over. They are supposedly making 'goodwill payments' to the bank, but in the past week I have learned more about their finances and spending habits and have reason to believe our rent is being used for purposes other than making said goodwill payments.

While looking for another place to live (difficult to find this time of year in my area), I'm concerned about what happens if the property goes into foreclosure -- can the bank foreclose on our personal property in the house? Is there a way to check if a house is in pre-foreclosure? Or foreclosure?

Friend is now balking at signing a lease, stating that it doesn't matter if the bank decides to sell, and that's making me think that they possibly are in foreclosure already.


Help?
Hi randomequine!

Welcome to forums!

If your name is not on the mortgage, then the lender won't be able to come after you in order to recover his dues. Your credit score won't be affected due to this. However, I will suggest you to not sign any other documents with your friend now that the property is in foreclosure status.

Feel free to ask if you've further queries.

Sussane
Posted on: 12th Jan, 2011 08:47 pm
A new wave of people claiming to own the house when actually the bank owns it are called "professional squatters", you could of been a victim of someone who has is playing the system and is acting as a fake land lord or owner of a vacant home that is actually owned by the bank. IF you have nothing in writing be warned you could be evicted and the people who may or may not own the home could get time in jail. This is becoming a major problem as more and more houses become vacant and people are just assuming fake ownership of the homes. Best to move out and move on and not waste any more of your money.
Posted on: 19th Jan, 2011 02:24 pm
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