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Old 12-20-2012, 01:22 PM   #61
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Default Re: Can I collect rent while my house is in default?

It is unfortunate but there is a lot of this going on. I rented a home a few months ago and found out that the house is in foreclosure shortly after. We asked if the house was in default or in foreclosure prior to signing a one year lease. We were told that it was not. We found out that there was an auction date scheduled only a month after we moved in. Shame on us for trusting people. We confronted our landlord about the issue and we were told that he was trying to Modify the home and that the auction dates will continue to be postponed until the modification is finalized. So there is a new auction date monthly. He has not provided us with written proof of the pending modification. It has been a stressful situation for myself and my family. He will not directly answer why we were lied to about the status of the home. We were not given the rightful chance to decide for ourselves if we wanted to move forward with this LL. The right thing to do was to inform us. We want to move, but we are stuck for the time being because the cost of relocating in California is tremendous. We continue to pay rent because he is unfortunately entitled to it until it changes hands. There are many other issues that we have come across and are currently dealing with during our stay and I do not feel comfortable airing it. We have spoken to a couple of Lawyers and have been told by all of them that we have a case and can sue. He is in breach of the 1 year lease agreement and he did not disclose that the house was in foreclosure.

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Old 12-20-2012, 02:25 PM   #62
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Default Re: Can I collect rent while my house is in default?

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Originally Posted by Unregistered View Post
It is unfortunate but there is a lot of this going on. I rented a home a few months ago and found out that the house is in foreclosure shortly after. We asked if the house was in default or in foreclosure prior to signing a one year lease. We were told that it was not. We found out that there was an auction date scheduled only a month after we moved in. Shame on us for trusting people. We confronted our landlord about the issue and we were told that he was trying to Modify the home and that the auction dates will continue to be postponed until the modification is finalized. So there is a new auction date monthly. He has not provided us with written proof of the pending modification. It has been a stressful situation for myself and my family. He will not directly answer why we were lied to about the status of the home. We were not given the rightful chance to decide for ourselves if we wanted to move forward with this LL. The right thing to do was to inform us. We want to move, but we are stuck for the time being because the cost of relocating in California is tremendous. We continue to pay rent because he is unfortunately entitled to it until it changes hands. There are many other issues that we have come across and are currently dealing with during our stay and I do not feel comfortable airing it. We have spoken to a couple of Lawyers and have been told by all of them that we have a case and can sue. He is in breach of the 1 year lease agreement and he did not disclose that the house was in foreclosure.

Stuck For Now
He is not in breach of your lease simply because the house is in foreclosure. Unless there is a state law that says so, or your written lease specifically states that the house is not in foreclosure at the time that you entered into it, and won't be for the duration of the lease, then what the LL is doing is perfectly legal and doesn't affect your lease at all. In fact, even AFTER the house is foreclosed and transferred to a new owner, your lease transfers intact to the new owner. The only difference at that point is that you pay your rent to a new LL instead of the old one until your lease expires normally.

As a tenant in a potentially foreclosed property, you ALSO enjoy the protection of the Protecting Tenants at Foreclosure Act of 2009 (PTFA), which reiterates what I've already said. In addition, it offers additional protections - including protection from eviction by a new property owner and a guarantee of no less than 90 days notice in the event that the new owner plans to occupy the property. This is in addition to any protections offered by your own state LL/T laws.

For those interested in learning more about the PTFA, how it works, and finding sample letters to send to new owners/banks and LLs, see here:
About the PTFA: National Low Income Housing Coalition
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Old 02-11-2013, 07:04 PM   #63
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Thank you!! Exactly what my family is going through right now..we are in WA state. Constantly being harrassed & threatened by our supposed to be landlord & the house is in foreclosure..will be auctioned off in a few months. Trying to learn what our rights are. Anyway, well said. Thanks!
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Well the Rent Skimming Law works only on the fact that the person purchased the home within a 1 Year time frame, so this probably rules out most people but I would write a letter to the Landlord letting them know you know the home is in the foreclosure process and that you have NOT BEEN NOTIFIED IN GOOD FAITH by the Landlord that the home is in foreclosure so could make reasonable moving arrangements that take time and money and he/she has failed to give you sufficient notice of the pending foreclosure that opens up the potential for you and your family to experience DAMAGES (stress of moving, son/daughter missing school, having to enroll them into a new school, unexpected moving expenses, higher rent, etc.). Then I would demand that the landlord provide WRITTEN PROOF that they are trying to save the home (which they most likely are not since they are scumbags that never were honest with you in good faith notifying you that the home is going into foreclosure) and if they in fact trying to save the home then sure they are entitled to the rent and if not, I would like to see them try to win an eviction case in court for a home that they are going to lose anyways and could get sued by the bank for keeping the rents they have been pocketing so far! No scumbag is going to open that can of worms once they know that you're not a push over and will fight it in court to the end!
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Old 03-22-2014, 05:40 AM   #64
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I am in default on a home I think Im going to just let foreclose. Can I collect rent, and pocket it, while I am in the foreclosure process?
Yes you legally can. But it makes you a ****ing dick. I hate people like you. Don't **** with other peoples lives *******.
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Old 04-03-2016, 07:45 PM   #65
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I'm a single mom of 5 kids 2 of them have disabilities I just gave my new landlord over 2,000 dollars she leaves in Florida the house she rent me is in Arkansas,she didn't give me a copy of the lease at the moment we signed she was gonna email it to me cause she needed to catch her fly back home this was 2-27-16 now 4-3-16 I been texting her for the copy no respond and I just found out the house is for closure would I be on the wrong to hold the rent so I can save up to move ??
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Old 11-07-2016, 09:19 AM   #66
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Default Re: Can I collect rent while my house is in default?

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I'm a single mom of 5 kids 2 of them have disabilities I just gave my new landlord over 2,000 dollars she leaves in Florida the house she rent me is in Arkansas,she didn't give me a copy of the lease at the moment we signed she was gonna email it to me cause she needed to catch her fly back home this was 2-27-16 now 4-3-16 I been texting her for the copy no respond and I just found out the house is for closure would I be on the wrong to hold the rent so I can save up to move ??

Hey all,

I am in the same spot as Single Mom above,
Can I just stop paying the rent to the owner who is now letting the home go into foreclosure?
The owner is not paying the mortgage and is not paying the bank. That's what bank staff told me.

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Old 11-08-2016, 07:12 AM   #67
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Default Re: Can I collect rent while my house is in default?

You are still supposed to pay according to your lease.
And legally you are required to do so. And the LL could try to collect in the future.


I suppose there is some question about whether the LL will enforce the obligation given the LL's own behavior currently.
You will have to judge that.
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Old 03-30-2018, 01:52 AM   #68
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Default Re: Can I collect rent while my house is in default?

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I am a tenant who lives in a condo that is headed towards foreclosure...I think it is horrible that my landlord is still collecting rent from me when they are not even making payments on the condo. Why should they get to pocket my rent payments when I will just get evicted in the end?

So my question is...what is considered foreclosure status? Can I do anything? A letter arrived stating that the house was in default, and if payments were not made, then the bank would foreclose on the house. Do I still have to continue to pay my landlord rent when they have not paid their mortgage payments over the past year? The letter stated that they had not paid over $18,000 in mortgage payments.

Please help!
They are pocketing the rent money because they are the owners of the property that you are renting. I assume that you are living in the property that you are renting so I guess the real question is why should you get to live in someone else's property if you don't pay any rent. Even if the property is in default, and whether the owner has made their payments or not, is only your concern as far as it concerns your rights. Even if there is a foreclosure sale date scheduled, you still need to pay your rent to the owners for as long as they own the property if you are still living in the property and enjoying the benefit of living there. If and when the property is sold due to a foreclosure of the owner's loan, the property will be sold and the lender will collect all of the missed payments plus interest and many thousands of dollars on top of all that for numerous other charges so, you see the owner will end up paying the price in the end. Why do you feel the need to kick a person when they're down and add to their troubles? Just pay your rent. It is the right thing to do!
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Old 04-04-2018, 03:13 AM   #69
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Default Re: Can I collect rent while my house is in default?

A huge number of years of experience lawyer who belongs the San Diego, California. I am sure he can guide you well in this case. You should contact him soon.

https://www.markhamlawfirm.com/attor...lliam-markham/
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