Posted on: 02nd Oct, 2007 01:58 pm
we are renting and have already rented for a year. we just signed a 2 year lease in febuary. unfortunately the landlord died. he took out a second mortgage on the house . so we are being told we were told that we could stay and that the family would honor our lease now they said that the company that the second mortgage is going to take drastic action against us and will evict us. how can we handle this situation
Unfortunately if the 2nd mortgage is foreclosing then there is little you can do. When a house has a mortgage on it the bank technically owns it for all intents and purposes. The owner does own it but the bank has a right to it if the owner doesn't pay. Which he obviously can no longer do.
So if they are getting foreclosed on it doesn't really matter what paperwork you have the lender is going to get the house.
You should contact a lawyer however and find out how much time you have until they are allowed to kick you out.
So if they are getting foreclosed on it doesn't really matter what paperwork you have the lender is going to get the house.
You should contact a lawyer however and find out how much time you have until they are allowed to kick you out.
Hello MRSVP,
After the foreclosure of your landlord's house, you actually have no right to it anymore. You may receive an eviction notice from the mortgage company and have to evacuate the house accordingly. The mortgage company, in some cases, may provide little amount of money to the tenants for an easy eviction process but this varies not only with the lenders but also from place to place. If there is any other representative of your landlord, you may file a breach-of-lease claim along with the return of the security deposit.
After the foreclosure of your landlord's house, you actually have no right to it anymore. You may receive an eviction notice from the mortgage company and have to evacuate the house accordingly. The mortgage company, in some cases, may provide little amount of money to the tenants for an easy eviction process but this varies not only with the lenders but also from place to place. If there is any other representative of your landlord, you may file a breach-of-lease claim along with the return of the security deposit.
Once again solid advice from both comments. You do has certain tenant rights and if the property is foreclosed then you will receive written notice of eviction.
Unfortunately the lease, upon the owners death, is now likely invalid. You can't have a binding contract with someone that is dead. Contact an attorney to get the best advice for your specific state.
One question I have is: Why would the second mortgage foreclose, unless they have are larger interest in the property than the 1st mortgage. Not only that, the property will need to be worth both mortgages as well as the foreclosure fees. 2nd mortgages rarely foreclose because they have a secondary interest to the 1st mortgage and will lose big time in a foreclosure. (THIS IS BASED ON THE ASSUMPTION THAT A FORECLOSURE IS GOING TO OCCUR- ARE THE PAYMENTS NO LONGER BEING MADE BY THE TRUSTEE/FAMILY? WHY IS THE 2ND MORTGAGE GOING TO TAKE DRASTIC MEASURES)
The last thing I could tell you is to contact the lenders, they may be willing to assist you in obtaining a mortgage to purchase the property since you already live there, rather than foreclosing- please be aware this is a long shot and you will need very cooperative lenders.
Unfortunately the lease, upon the owners death, is now likely invalid. You can't have a binding contract with someone that is dead. Contact an attorney to get the best advice for your specific state.
One question I have is: Why would the second mortgage foreclose, unless they have are larger interest in the property than the 1st mortgage. Not only that, the property will need to be worth both mortgages as well as the foreclosure fees. 2nd mortgages rarely foreclose because they have a secondary interest to the 1st mortgage and will lose big time in a foreclosure. (THIS IS BASED ON THE ASSUMPTION THAT A FORECLOSURE IS GOING TO OCCUR- ARE THE PAYMENTS NO LONGER BEING MADE BY THE TRUSTEE/FAMILY? WHY IS THE 2ND MORTGAGE GOING TO TAKE DRASTIC MEASURES)
The last thing I could tell you is to contact the lenders, they may be willing to assist you in obtaining a mortgage to purchase the property since you already live there, rather than foreclosing- please be aware this is a long shot and you will need very cooperative lenders.
