BiggerPockets

We just learned today, from a visiting real estate broker that the apartment we are renting in Connecticut is in forclosure. He didn't inform us and we paid him two months rent for nothing. Any advice on how to get that rent back?

Also, the real estate broker offered us $500 to move out. We are shopping for a home now and are not in the position to leave just right away.

I assume we have time but don't know the legal aspects of being obligled to leave. Anyone know?

Wayne

What were the two months rent for? People don't normally pay in advance, so was that back rent that you owed? If so, you owed it and you paid it. That's the end of it.

If the property is foreclosed, you have to move. Foreclosure cancels any lease you have. There is nothing that you can argue about; out you go.

I suggest that you counter offer and tell them you will move out if you get the rent you paid in advance returned, plus the $500 they offered. If you paid 2 months in advance, you owe for this month's rent, but they owe you a refund for next month.

I suggest you look harder for a new place, because when the bank gets the place back, they don't have to give you any notice at all, and you are out. The courts will enforce the bank's rights and have the sheriff toss you out if you don't leave.

If the $500 is the best you can do, better grab it. If the landlord is getting foreclosed, he doesn't have any money, so it would be a waste of your time to sue him. It almost sounds to me like the $500 isn't coming from the landlord. It sounds more like a very nice gesture from the listing agent to try to help you out.

Just a suggestion: if this is a house and not an entire apartment building, you could make an offer and buy the house for yourself. Usually foreclosed property is sold at a bargain price. It might be your opportunity to buy a house for yourself.

Reply: We will take something from the broker. But we argued for more. They probably won't give more but we can try. We will retain a attorney regardless. Our lease ended this month. But he was forclosed for sure months before which negates the lease contract. As mentioned in another reply the LL is a drunk and beligerant. We want legal retribution though.

Without valid and appropriate documentation, IMHO you would be foolish to pay money to anyone, such as this " visiting broker" , or, for that matter, to even discuss information about you or the property. Have you not read about the scams perpetrated by people that claim to have an ownership or management interest? If you have a written, legal, rental or lease agreement, my suggestion would be abide by it. No matter who has the ownership interest, you owe money for the time you occupy...there is no " retribution" .

Although I certainly cannot speak to the laws of all states, most have statutes that apply concerning notice and tenants. If you lawfully occupy the premises, and often even if you do NOT lawfully occupy, you still have " tenants rights" as they may be defined in your locale. Assert your rights and don't let a stranger in without clear authority!

Reply: We have been approached by realitors - 2 in the past two days with letters stating a bank bought it in auction. We are telling them we want correspondence from the bank directly. My wife actually witnessed the Sheriff come by twice to serve papers to the LL several months ago. We didn't know for what at the time because the presumed ex-LL had been involved with throwing his girlfiend out and removong her property unbenouced to her, and a drunken car crash. We thought he was being served for those two offenses.

Has that happened? That broker should be able to tell you.

Reply: Broker(s) both said, and their letters said so.

It sounds like it has because that broker is poking around. He may be the one hired by the bank who now owns the building to list it.

If the auction really did happen months ago, and the former owner has been hanging around and collecting rent, then he's just plain committing fraud. He's collecting rent for property he doesn't own. I guess that could happen, but it seems unlikely.

Reply: Well we think he did.

If you paid him before the auction for time in the place after the auction, then I suspect that's lost money.

Reply: Yea we think so too. The snake.

If you paid him after the auction, then you might get your money. Realize, though, that while you may have a claim, and might get a judgment, collecting that judgment may be difficult. Unless you're talking lots of money, multiple thousands, I think you may be throwing good money after bad to put much into perusing this.

Reply comment: My wife has been through the whole eviction process before and she knows our rights and the $'s involved for the asset owners to evict us. Once we get a " real" statement from the owner and a new offer of $'s to move us out then we'll know more. What we were told by the realitor is that the ex-LL, who lives in the same house BTW, is claiming he has no place to move to. Until we know for sure who is the owner - we can negociate us moving.

Reply: We are. We bid on a house that is a quick or fast sale. This aspect is that the owner can sell before forclosure. We are waiting 4 weeks now for the owners bank and lawyer to work-out the deal and what othr payments the owner has to make to the bank. The realitor has told us that more than half the homes selling now in the area are in forclosure, making all deals a lengthy process. Thanks for your feedback all!