Our landlord is in default of his mortgage! HELP!

mpark46 · Jul 1st, 2008, 03:51 PM

Ok, so I found a nice note plastered on our condo that our unit is going up in a trustees sale. Lovely, and out there for all of our neighbors to see.

Well, our landlord has been really vague, saying he'll take care of it, or at worst, he has an investor that can buy the unit out from under him and we will transfer our rental payments.

Well the auction day was supposed to be today, and I called the bank. They said that the sale has been delayed for a week.

Well, we haven't paid our July rent ($3100) since our landlord may not even own the unit in 7 days. He also has an additional $5200 of ours as a security deposit.

Will we ever see our security deposit again?

Also, we are thinking about going to the auction and buying the condo. Has anyone ever been to a trustee's auction? What can I expect?

stellamaried · Jul 1st, 2008, 04:06 PM

There are renter protection agencies -- do a Google search for your area. I don't know much about renters' rights, so I apologize that I can't be of much help, but there are a lot of regulations for these things and consumer agencies who can help you. At any rate, I am pretty comfortable in saying that anyone who purchases the property does so subject to your rights. Certainly you have a right to get your deposit money back from whomever owns the unit. I'm pretty sure that they cannot terminate your lease early either.

lorihmatthews · Jul 1st, 2008, 04:39 PM

I have gone to trustee's sales. But the procedures vary from state to state. In CA, the property goes to the highest bidder and you literally have to pay for the property in cashier's checks. But before you even do that you need to check up on the property and make sure there are no other liens or other debt attached to it. You don't want to be responsible for the owner's debts.

If you're really serious, I'd suggest hiring a real estate attorney to do the legwork for you. Or look up the records at the Assessor's office at your City Hall.

You may have to sue him for the deposit back. I'd take action immediately. That may require you to go to small claims court if he doesn't cough it up.

So sorry to hear about your situation!

mpark46 · Jul 1st, 2008, 04:45 PM

Quote:

Originally Posted by lorihmatthews

I have gone to trustee's sales. But the procedures vary from state to state. In CA, the property goes to the highest bidder and you literally have to pay for the property in cashier's checks.

You have to pay the total? I imagine its just a portion, like 3%.

I will find out about the liens. Thanks

guccimamma · Jul 1st, 2008, 05:51 PM

don't pay your rent, your landlord hasn't been paying his mortgage....right now the status of your place is in limbo....i wouldn't pay anybody.

use that money to find someplace new to live. asap.

Vegas Long Legs · Jul 1st, 2008, 06:04 PM

^^^ totally agree!

barcreperie · Jul 1st, 2008, 06:31 PM

Quote:

Originally Posted by guccimamma

don't pay your rent, your landlord hasn't been paying his mortgage....right now the status of your place is in limbo....i wouldn't pay anybody.

use that money to find someplace new to live. asap.

Great advice - this is definitely what I'd do.

Irishgal · Jul 1st, 2008, 06:32 PM

Ack, you don't want to buy this place, I have a bad feeling about this. But if you do, get a whole bunch of cashier's checks in amounts like 25K, some for 20K some for 10K adding up to the total of what you think the place is worth. The person who gets the place will have to pay on the spot, so that is why you want different amounts, cause they don't give change..LOL

lorihmatthews · Jul 1st, 2008, 06:35 PM

Quote:

Originally Posted by mpark46

You have to pay the total? I imagine its just a portion, like 3%.

I will find out about the liens. Thanks

Yes, this is how it works in San Francisco when properties are auctioned off literally on the courthouse steps IF they are foreclosures. It's different if they are auctioned off if the owner has died and didn't have their property in a trust and it's being sold through probate court. Before you bid on a foreclosure you have to show the auctioneer your envelope of cashier's checks to prove you have the cash to buy whatever property it is you are bidding on.

Definitely get your ducks in a row before you make a bid on that place.

You are in San Francisco, aren't you?

PM me if you need more info, I have learned a lot about the foreclosure market and probate market here. I can also recommend a local real estate attorney.

guccimamma · Jul 1st, 2008, 06:48 PM

i have purchased 3 foreclosures in the last couple of months, all have been through realtors...and we have been able to obtain financing on them through the normal channels...it must vary by city, because i live in the same state as lori.

why do some go to auction, while others go into foreclosure and are listed by agents?

lorihmatthews · Jul 1st, 2008, 10:10 PM

Quote:

Originally Posted by guccimamma

i have purchased 3 foreclosures in the last couple of months, all have been through realtors...and we have been able to obtain financing on them through the normal channels...it must vary by city, because i live in the same state as lori.

why do some go to auction, while others go into foreclosure and are listed by agents?

Well, you know here in San Francisco we do a lot of things differently!

Generally speaking, from what I've seen here, a property goes through the foreclosure process and goes to auction as a last step before the bank has to "put it on its books." If it doesn't sell, then the bank may hire a realtor to try and sell it. The reason why the bank tries the auction first is so they don't have to pay the realtor's commission. From the auctions I've attended, the defaulted properties are usually snatched up by investors who have the cash in hand to pay for them. Then they usually flip them after doing little or no work to improve the property. Many of them are realtors working with silent partners so they don't have to worry about paying commission.

In very rare cases the defaulting owner is able to renegotiate their loan at the last minute with the bank, which is what the owner might be doing now. That may be why the auction was delayed.

Roo · Jul 1st, 2008, 10:15 PM

Many states have passed legislation that protect renters in situations like this. I would check to see if your state has such a law on the books. If so, then you must be given ample time to relocate and also your landlord may have to compensate you financially for the involuntary eviction. Know your rights and don't pay this schmuck another dime!

Roo · Jul 1st, 2008, 10:19 PM

OK mpark, I see you are in San Francisco. They are working on getting a law passed in Calif. and it may have already passed, but double check. Here's the info:

http://www.californiachronicle.com/articles/57250

Hope this helps. Also check with the City to see if there are ordinances in place that protect renters from this type of situation.

lorihmatthews · Jul 1st, 2008, 10:23 PM

^Roo -- this is good info but in San Francisco proper, if a property is purchased and the owner wants to move in, they can still evict the tenant.

I know this because I was in the situation where I was the new owner (I had bought a condo through regular channels) and I had to evict the tenant. Since I had made the purchase I "inherited" the tenant. All I had to do was give him 30 days notice.

PurseFanatic · Jul 1st, 2008, 11:28 PM

Quote:

Originally Posted by stellamaried

There are renter protection agencies -- do a Google search for your area. I don't know much about renters' rights, so I apologize that I can't be of much help, but there are a lot of regulations for these things and consumer agencies who can help you. At any rate, I am pretty comfortable in saying that anyone who purchases the property does so subject to your rights. Certainly you have a right to get your deposit money back from whomever owns the unit. I'm pretty sure that they cannot terminate your lease early either.

If the landlord is in default the bank can do what they like with the property and they do have the legal authority to terminate any renters lease and agreements immediately.

The landlord was bound to the lease while he was paying on the property, the bank is not bound by any contract they didn't sign. You can't force another entity, especailly a corporation to agree to a contract they know nothing about.

This is sad but it's a hard lesson, you don't ever own your property. Once you pay off your mortgage you are no longer beholden to the bank, but if you don't pay HOA fees, the HOA can sell your house out from under you (in some states) and if you don't pay your property taxes the city can take your home. You never own your home in the US, unless you live somewhere without an HOA and property taxes.

Jul 1st, 2008, 03:51 PM	#1
mpark46 Member Joined: Mar 2006 Posts: 1,558	Our landlord is in default of his mortgage! HELP! Ok, so I found a nice note plastered on our condo that our unit is going up in a trustees sale. Lovely, and out there for all of our neighbors to see. Well, our landlord has been really vague, saying he'll take care of it, or at worst, he has an investor that can buy the unit out from under him and we will transfer our rental payments. Well the auction day was supposed to be today, and I called the bank. They said that the sale has been delayed for a week. Well, we haven't paid our July rent ($3100) since our landlord may not even own the unit in 7 days. He also has an additional $5200 of ours as a security deposit. Will we ever see our security deposit again? Also, we are thinking about going to the auction and buying the condo. Has anyone ever been to a trustee's auction? What can I expect?

Jul 1st, 2008, 06:04 PM	#6
Vegas Long Legs Member Joined: Nov 2006 Location: Las Vegas Posts: 3,398	^^^ totally agree! __________________ Planning next voyage! Oct/Nov '08

Jul 1st, 2008, 06:32 PM	#8
Irishgal I run with scissors Joined: Apr 2006 Location: Treasure Island Posts: 6,783	Ack, you don't want to buy this place, I have a bad feeling about this. But if you do, get a whole bunch of cashier's checks in amounts like 25K, some for 20K some for 10K adding up to the total of what you think the place is worth. The person who gets the place will have to pay on the spot, so that is why you want different amounts, cause they don't give change..LOL __________________ Ten thousand blessings to all of our furry friends who are in need of prayers. May they be comfortable, healthy, and blessed with joy and companionship. May their eyes shine brightly and may they know that they are loved.

Jul 1st, 2008, 10:15 PM	#12
Roo Up to the Minute Mod Joined: Apr 2006 Location: Rue Roo Posts: 9,086	Many states have passed legislation that protect renters in situations like this. I would check to see if your state has such a law on the books. If so, then you must be given ample time to relocate and also your landlord may have to compensate you financially for the involuntary eviction. Know your rights and don't pay this schmuck another dime! __________________ Reality leaves a lot to the imagination.

Jul 1st, 2008, 10:19 PM	#13
Roo Up to the Minute Mod Joined: Apr 2006 Location: Rue Roo Posts: 9,086	OK mpark, I see you are in San Francisco. They are working on getting a law passed in Calif. and it may have already passed, but double check. Here's the info: http://www.californiachronicle.com/articles/57250 Hope this helps. Also check with the City to see if there are ordinances in place that protect renters from this type of situation. __________________ Reality leaves a lot to the imagination.

Jul 1st, 2008, 04:06 PM	#2
stellamaried Member Joined: May 2006 Posts: 589	There are renter protection agencies -- do a Google search for your area. I don't know much about renters' rights, so I apologize that I can't be of much help, but there are a lot of regulations for these things and consumer agencies who can help you. At any rate, I am pretty comfortable in saying that anyone who purchases the property does so subject to your rights. Certainly you have a right to get your deposit money back from whomever owns the unit. I'm pretty sure that they cannot terminate your lease early either.

Jul 1st, 2008, 04:39 PM	#3
lorihmatthews Luv my Persian Joined: Oct 2006 Location: San Francisco Posts: 6,625	I have gone to trustee's sales. But the procedures vary from state to state. In CA, the property goes to the highest bidder and you literally have to pay for the property in cashier's checks. But before you even do that you need to check up on the property and make sure there are no other liens or other debt attached to it. You don't want to be responsible for the owner's debts. If you're really serious, I'd suggest hiring a real estate attorney to do the legwork for you. Or look up the records at the Assessor's office at your City Hall. You may have to sue him for the deposit back. I'd take action immediately. That may require you to go to small claims court if he doesn't cough it up. So sorry to hear about your situation!

Jul 1st, 2008, 05:51 PM	#5
guccimamma guccimamma Joined: Aug 2006 Posts: 2,841	don't pay your rent, your landlord hasn't been paying his mortgage....right now the status of your place is in limbo....i wouldn't pay anybody. use that money to find someplace new to live. asap.

Jul 1st, 2008, 06:48 PM	#10
guccimamma guccimamma Joined: Aug 2006 Posts: 2,841	i have purchased 3 foreclosures in the last couple of months, all have been through realtors...and we have been able to obtain financing on them through the normal channels...it must vary by city, because i live in the same state as lori. why do some go to auction, while others go into foreclosure and are listed by agents?

Jul 1st, 2008, 10:23 PM	#14
lorihmatthews Luv my Persian Joined: Oct 2006 Location: San Francisco Posts: 6,625	^Roo -- this is good info but in San Francisco proper, if a property is purchased and the owner wants to move in, they can still evict the tenant. I know this because I was in the situation where I was the new owner (I had bought a condo through regular channels) and I had to evict the tenant. Since I had made the purchase I "inherited" the tenant. All I had to do was give him 30 days notice.