UTMC

I'm young, inexperienced with these big words, and enjoy riding motorcycles. That said...Let's say I rent a basement apartment from a general contractor. Said contractor is kind of shady, but a generally nice guy. Anyway, lets also say he got audited by the IRS for a few years worth of his business, owed them big time, paid it off, but is now totally broke and hemorrhaging money, forcing him to file a chapter 7 thinger.

Am I going to wake up one morning to a man in a suit kindly telling me to get my shit the fuck out because the bank he represents just took the house back?

Totally hypothetical, mind you...Totally.

Kicking somebody out of their house takes time, and bankruptcy courts usually try to let people stay in their houses. As long as your landlord is being up front with you, you will probably get some substantial heads up before its time to find a new place to live.

Rev wrote:Read up on the "Protecting Tenants at Foreclosure Act of 2009," see if it applies.

I think they have to let you run out the lease, or give you 90 days if you're month-to-month.

A friend of mine has been in a similar situation for about a year, and he's been legally living rent-free because there was no one to pay, so keep your fingers crossed.

Good point!

Do you have a lease? Maybe its time to sign one.

This happens--especially with hypothetically shady landlords: They learn their place is going into foreclosure, but foreclosure takes a long-ass time--sometimes six months. The entire time, he keeps collecting your rent like everything's peachy. Then you get a knock on the door. But yeah, a landlord can't just kick someone out on the street. And in this case, the landlord is either the actual hypothetically shady landlord, or the bank. No one can say get the fuck out of here by tomorrow or even next week. That's my understanding.

PM goose and have him hit up this thread. I'd like to hear what he says if the bank is the owner, but hasn't technically been collectying rent. Real estate law is what he does when he isn't getting t-boned by muscle cars.

be happy he can't hire me..... I'd have your motorbike riding sorry ass out on the street before you could say Unicorns Took My Car! Damn, shiftless tenants who pay no fucking property taxes, treat the house like their catbox and demand windows that don't leak and heat. Just who do they think they are?!!

Yeah, even if he gets foreclosed out, it's gonna take awhile . . . you might wanna pm me if you get a notice . . .

Rabbit_Fighter wrote:

Rev wrote:Read up on the "Protecting Tenants at Foreclosure Act of 2009," see if it applies.

I think they have to let you run out the lease, or give you 90 days if you're month-to-month.

A friend of mine has been in a similar situation for about a year, and he's been legally living rent-free because there was no one to pay, so keep your fingers crossed.

Good point!

Do you have a lease? Maybe its time to sign one.

Leases are terminated once the Deed of Trust is foreclosed out (subsequent inferior interest in the property). Additionally, the Bank can collect the rent, however, they become clearly involved in the role of landlord, which is why they often don't foreclose depending on the condition of the premises - they don't want the Liability. So, they go through an REO or short-sale. Wanna know more? I don't blame ya, it just sounds so fun doesn't it? Shoot me now!

In any event, as a tenant, you have at least 30 days from the date of notice - and usually 90 days due to the repurchase period (foreclosed party can buy back the property thus avoiding the conveyance - always a risk when you purchase at a foreclosure sale) after a judicial lien/foreclosure sale. I could go on and on and think about how much money I've wasted learning this shit or how many tenants I've kicked to the curb .... but, eh, it's a crappy job. So, if you need a hand . . . gimme a pm. Otherwise, I trust you'll be fine.

Is the apartment legal with a CO and all? Does everyone involved know there's a "tenant" in the mix; is your landlord reporting your rent or is he forgetting to report $XXX monthly income?

Wow - thanks for all the info everyone!

It is my understanding that my rent is being reported - but that could be incorrect. I have signed a lease, but don't have a copy. We asked for a copy and never got it, so I'm gonna go get on it now when I go upstairs to drop off the rent check for the month.

We lived down here for awhile without a lease after our last one expired, but were asked to sign a new one because of his audit. I'm not clear on exactly how or why, but I think he told the auditor he had been renting out part of his house to pay his mortgage, and then had to file subsequent paper and declare the income or something. I dunno man. I just want to ride motorcycles, go to work, and sleep at night. Anyway yeah, I don't think I'm in imminent danger, but I figured I should start reading up and become knowledgeable on the subject. I guess all renters should know this stuff anywho. Thanks errrbody!

causef0rconcern wrote:I have signed a lease, but don't have a copy. We asked for a copy and never got it, so I'm gonna go get on it now when I go upstairs to drop off the rent check for the month.

Gaaaaaah!

Yeah. Get that. Like, now. Make a whole bunch of copies. CYA, man.

If it were me, no lease no $$$.