Landlord is being foreclosed what are my options (tenant)?

Deal Score0

We are renting a house in IL and it’s been about 3 years now. Recently we found out that the house is going into foreclosure. Landlord is being foreclosed and we got notice of sale that the place is going to go on sale on July 5, 2011.
I think it was letter letting us know what is going on. Plaintiff (wells fargo vs. defended (my landlord’s name) The envelope addressed to my last name or current owner. Now I have been paying rent to my landlord and never missed a payment. I think she is having financial hardship and it’s going to foreclosure. Our AC is broken and she is basically told us she does not have any money to fix that. She has given up on all maintenance and other house repairs.

We have monthly lease with the landlord we have been paying all my rent on time.
We still keep sending her monthly check for rent made out to her name.

I have questions am I going to get evicted?
Is this going to affect my credit report?
Now I know for fact that she is not making any payments to Wells Fargo.
Technically I am still obligated to pay rent. Should I keep paying rent if my landlord is in Foreclosure? I do not know what to do?
if I move out next month what are the protocol I am not under leased its basically monthly.?

  1. Reply
    November 10, 2011 at 9:36 am

    You are paying the rent and as a sitting tenant have rights. You can of course give a month’s notice to your landlord and move out, or you can stay put.

    I suggest you contact Wells Fargo to seek their advice. In the meantime keep paying the rent.

    Best of luck!

  2. Reply
    November 10, 2011 at 9:45 am

    To answer your specific questions.

    -If the house does in fact foreclose you will possibly be evicted. However you will be given as a renter proper notice. In the case of foreclosure it is typically 60 days. However you should check what the specific laws are in your state. Usually it is recommended you consult an attorney as to what your specific rights are as a renter. Depending on what happens to the property when and if it does forclose in some cases the new owner may also offer you a new rental agreement.

    -No the forclosure does not affect your credit report. However if you stopped paying rent before the property forecloses and landlord reported you that could affect. Which leads to your next question.

    -Yes you should continue to pay your rent at this time your landlord still owns the property, if you stop paying rent you are in default with your rent and you could get evicted. Until the property actually forecloses your landlord may find a way to save the property and if you like living there you do not want to fall behind in your rent. Also in many cases the actual date of sale for the foreclosure can get postponed for many reasons and could take many more months before it actually forecloses until the your landlord is still the owner. You are on a month to month lease and you are getting the use of the house that you are paying for monthly. So their not paying their mortgage is unfortunately not really of consequence to you even if it is frustrating. .

    -If you are on a month to month agreement than you could just choose to find another place and move at the end of the month.

    Finally it is always recommend that you contact an attorney or local housing counselor to better understand your rights as a renter.

  3. Reply
    Kimberly Hill
    November 10, 2011 at 10:21 am

    I know that you are now in the dilemma on how to face your present problem, that might causes you to be homeless.

    Call Wells Fargo…

    If you know that your Landlord is really facing a financial hardship, why not help them. Helping is one thing to show concern to the person.

    By suggesting to him/her to apply for the loan modification to the bank?

    Leave a reply

    Register New Account
    Reset Password