Results 1 to 7 of 7
  1. #1
    Join Date
    Sep 2018
    Posts
    1

    Default What Happens to a Tenant's Lease After Foreclosure

    I have an agreement with my landlord for 12months rent credit in exchange for repair work completed on other rental property buildings owned by him. I recently received a notice of sale and discovered he is in foreclosure + process continued despite his claims that there was nothing to worry about/ he & his lawyer were working to remedy this. The property I lease is now bank owned.

    What are the state (MO) or federal laws pertaining to this? (repair work done in exchange for rent credit) There is no subordination clause in my lease, though I have doubts that these rental agreement terms are enforceable in the event of foreclosure. My Former Landlord filled out, signed, and delivered a copy of my residential lease stating: payment for the first 12 months is hereby paid in full in advance. A

    fter seeing evidence of my Former Landlord's negligence & mismanagement result in Default/Foreclosure, I do not trust him or his lease provisions. I do not intend to follow suit and risk losing my home. Our agreement for 12 months rent credit ? Breach of contract? Consumer Fraud? I wish to remain as a tenant in good standing. Personally, I have invested an earnest, honest effort + time in addition to money spent on rent.

    I cannot afford to suffer any further expense or risks involved in relying on this slumlord's word. Written or otherwise. Currently, I don't posses the means to afford the cost to retain legal counsel + hold rent in escrow (and if forced to move suddenly-I'm officially screwed.

  2. #2
    Join Date
    Mar 2013
    Posts
    18,340

    Default Re: Tenant Lease in Foreclosure

    The federal protection for tenants after foreclosure expired in 2015 and was not extended. But even that only gave 90 days before you could be evicted through the courts.

    I don't see anything in MO landlord tenant laws that allows you to remain after foreclosure:

    http://revisor.mo.gov/main/OneChapter.aspx?chapter=441

    Now that the bank owns the property you WILL have to leave. Whether you leave as a result of written notice of termination or eviction through the courts, you WILL be leaving at some point and, trust me, you don't want a court eviction on your credit report.

    Meantime, if you believe that your landlord breached his contract with you, you are welcome to sue him in small claims court for whatever dollars you think he owes you but you'll be doing it from somewhere else, not from where you are living now.

    PS: You won't have to move "suddenly." If you haven't received termination notice from the bank, you still have time. Use it wisely, by finding another place to live as soon as you can. Don't wait until the last minute and then complain that you have to move "suddenly."

  3. #3
    Join Date
    Oct 2006
    Posts
    16,474

    Default Re: Tenant Lease in Foreclosure

    Quote Quoting adjusterjack
    View Post
    The federal protection for tenants after foreclosure expired in 2015 and was not extended. But even that only gave 90 days before you could be evicted through the courts.

    I don't see anything in MO landlord tenant laws that allows you to remain after foreclosure:

    http://revisor.mo.gov/main/OneChapter.aspx?chapter=441

    Now that the bank owns the property you WILL have to leave. Whether you leave as a result of written notice of termination or eviction through the courts, you WILL be leaving at some point and, trust me, you don't want a court eviction on your credit report.

    Meantime, if you believe that your landlord breached his contract with you, you are welcome to sue him in small claims court for whatever dollars you think he owes you but you'll be doing it from somewhere else, not from where you are living now.

    PS: You won't have to move "suddenly." If you haven't received termination notice from the bank, you still have time. Use it wisely, by finding another place to live as soon as you can. Don't wait until the last minute and then complain that you have to move "suddenly."
    Well, he could offer to buy the house from the bank, and if the bank accepts his offer he would not have to move.

  4. #4
    Join Date
    Sep 2010
    Posts
    19,901

    Default Re: Tenant Lease in Foreclosure

    Quote Quoting adjusterjack
    View Post
    The federal protection for tenants after foreclosure expired in 2015 and was not extended.
    It expired in 2015, but it was reinstated in May of this year.

  5. #5
    Join Date
    Mar 2013
    Posts
    18,340

    Default Re: Tenant Lease in Foreclosure

    Quote Quoting flyingron
    View Post
    It expired in 2015, but it was reinstated in May of this year.
    Good catch. The government certainly kept that quiet. Even took me a while to find it.

    Section 304 of the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018 (Public Law 115-174) restored sections 701-703, and repealed section 704, of the Protecting Tenants at Foreclosure Act of 2009 (Title VII of the Helping Families Save Their Homes Act of 2009, Public Law 111-22), which expired on December 31, 2014. Section 704 contained the Protecting Tenants at Foreclosure Act of 2009's sunset provisions; the restored act does not include an expiration date.
    The restoration was effective June 23, 2018.

    https://www.federalreserve.gov/super.../caltr1804.htm

    At best that gives our OP 90 days from the bank's or subsequent owner's notice to vacate.

  6. #6
    Join Date
    Oct 2006
    Posts
    16,474

    Default Re: Tenant Lease in Foreclosure

    Quote Quoting adjusterjack
    View Post
    Good catch. The government certainly kept that quiet. Even took me a while to find it.



    The restoration was effective June 23, 2018.

    https://www.federalreserve.gov/super.../caltr1804.htm

    At best that gives our OP 90 days from the bank's or subsequent owner's notice to vacate.
    90 days however is a better than decent amount of notice.

  7. #7
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: Tenant Lease in Foreclosure

    Quote Quoting adjusterjack
    View Post
    Good catch. The government certainly kept that quiet. Even took me a while to find it.



    The restoration was effective June 23, 2018.

    https://www.federalreserve.gov/super.../caltr1804.htm

    At best that gives our OP 90 days from the bank's or subsequent owner's notice to vacate.
    for a bonifide tenant the lease remains enforceable for its duration if the buyer does not intend to use it for their own residence.

    1. Sponsored Links
       

Similar Threads

  1. Moving Out: Can a Tenant be Held to a Lease Term if the Landlord Lost the Tenant's Renewal Lease
    By helpkelso in forum Landlord-Tenant Law
    Replies: 3
    Last Post: 04-19-2018, 12:08 AM
  2. Breaking a Lease: Can a Tenant Break a Lease if a House is in Foreclosure
    By ohiohomerenter in forum Landlord-Tenant Law
    Replies: 2
    Last Post: 08-16-2016, 02:23 PM
  3. Breaking a Lease: If a New Tenant Signs a Lease is the Old Tenant Still Responsible for Their Lease
    By pegotty in forum Landlord-Tenant Law
    Replies: 3
    Last Post: 07-07-2012, 01:03 PM
  4. Foreclosure: Can Having a Tenant Lease Delay My Eviction Process After Foreclosure
    By empireforest in forum Buying, Selling and Conveying Real Estate
    Replies: 1
    Last Post: 07-07-2011, 08:28 AM
 
 
Sponsored Links

Legal Help, Information and Resources