Received notice of possible Trustee Sale/Foreclosure/Loan Mod on home I’m renting, should I be concerned?

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There was an advertisement mailed to the home I’m currently renting addressed to “current resident” and outlined that the home is scheduled for Trustee Sale on Nov. 3rd by a law firm on behalf of the lender. I did some digging online and called the law firm to confirm and it’s true. We just moved in on July 17th – 3 months ago and signed a 2 year rental agreement with a realty company that’s acting as a third party handling the renting process between us and the owner.

The property manager nor I had any idea that the home was in the foreclosure process and that there is an auction scheduled at the local county court for November. He contacted the owner and the owner stated that they’re going through a ‘loan modification’ and are ‘confident it won’t be foreclosed on’. Should I believe this without any doubt and carry on with life as though this never happened? Should I be concerned that the bank may in fact choose to sell the property anyways? My mother told me to hold onto the rent that’s due Nov. 1st until Nov. 4th in case the home is sold because the rent we pay for the month of November may not be due to the homeowner [as he may no longer own the home]. I know you’re obligated to pay rent to the landlord so long as you’re living there but I’m also aware that the agreement between myself and the landlord is broken once the sale goes through. Is this sound advice?

Also, do you think we should just break our lease after this stress and find another place to live? I’m guessing this loan modification/foreclosure threats/auction sale business implies that the homeowner is having trouble paying their mortgage on the house… Not sure if we wish to be renting from someone under financial duress. Hubby deploys in January and I’d hate to end up having to move/argue with the bank next year if this happens again and the bank forecloses on the home.

Thanks!
This is in Cumming, GA.
My hubby spoke with someone in the JAG dept and they said there’s nothing they can do for us other than suggest an Atlanta attorney; I was a little shocked.

4 Comments
  1. Reply
    I gotz that wicked clown love
    April 29, 2011 at 11:55 pm

    start looking!

  2. Reply
    timothy p
    April 30, 2011 at 12:22 am

    The loan may very well be in the modification process but it could still fall through. I would wait until the 4th and see who ends up with the house. I may also consider looking for another place to live. You have a very defensible position to get out of the lease.

  3. Reply
    Cheryl Johns
    April 30, 2011 at 12:23 am

    Your mother is soooo right – do not pay November’s rent. If they can get their loan modified, ask for proof before paying rent. Keep that letter as proof as to why you broke the lease, in the event you have to find another place.

  4. Reply
    Jill Suzanne
    April 30, 2011 at 1:13 am

    Go to a jag now. You are lucky t have that option. They will give you advice and what to do. Bring everything in with you and also let your husbands unit be aware of what is going on. It is close to the first so I suggest you do it ASAP. The Jags are there for a reason.

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