When will tenant get kicked out in foreclosure

Question

I am talking to a tenant who wants to know when he will be kicked out of the house.  He said today the house just had a piece of paper posted on the door giving the owner 30 day's notice.  Does that mean this tenant has 30 days to find a new place to live?

LaTonya Thompson · Answer

YES.

Mike C · Answer

Jeff,
                        
                        It sounds like the foreclosure is just beginning to me based on your second post. You said â€œthe landlord has 30 days to make the payments current or else.â€ That sounds to me more like a notice of default that you would get just before they start the foreclosure process. If the foreclosure was complete, that letter would have said something like you have 30 days to leave the premises before further legal action will be taken, i.e. you will be evicted. If this letter is the first they have seen, it probably means the process is just starting or they would have seen other formal letters talking about the process.
                        
                        To be sure which it is, I would have your tenant (or yourself if you are helping them out) look online to see if the property mailing address is the same as the ownerâ€™s address. If they are the same and this is the first letter the tenant has seen and based on what you said the letter said, I would say this is the beginning of the process. If the addresses are different then all the default notices probably went to another address and then this letter may mean it is time to vacate or be evicted.  Shouldnâ€™t take more than few minutes to check unless your county records are not online. 
            
            Then the tenant needs to have a heart to heart with the owner either way.
                        
                        Good luck
                        
                        Mike C

John Andre · Answer

Taz, I see that. That is why I said "if the owner is walking away!" Let the owner know you are not making rent payments anymore. Or ask for your security back to find another rental, and watch the owner dance around and not produce it. The mind set of people loosing their house, rental or not, is not lets take the rest of the world down with us. I have not seen that yet. If the tenant can show the owner has pocketed months of rent payments and not paid the mortgage, which is a violation of the mortgage agreement, and the house is in foreclosure, it is time the renter can start looking out for himself. Save a little money to find a new home. Because the money less land lord is not going to give up the deposit when the tenant gets kicked out.

John Andre · Answer

I would also advise the tenant to talk to the owner, if the owner is not paying the mortgage, Tell the tenant to stop paying rent. As an investor forum that might sound harsh and could put a dent in our pocket. BUT, the tenant might have a dead beat landlord.. Taking all money and not paying the mortgage. That means the tenant most likely will not see his security payment or get his last months if that is held as a deposit also. Jeff, it sounds like you have the relation with the tenant, not owner. Tell the tenant to stop making payments, "if the owner is walking away!" and start saving for his next deposit and first and last. You now have someone that trust you, and a good rental application with money in their bank. Taz is right, a notice on the door with an option to pay means their is still time for the owner to make it right. Depending on the state, 6 months to a couple years before the eviction comes. Some states are even working with tenants, to not evict them. They are being seen as innocent victims or collateral damage. Which will give the tenant even more time to find a place to move.

Account Closed · Answer

However, the tenant absolutely should move as quickly as possible. Unless they like the house and would like to work with the landlord and bank to buy it.

Just a thought.

Account Closed · Answer

Be careful about telling the tenant to stop making payments. A lease or rental agreement rarely contains anything preventing the landlord from enforcing it even if they are not making the mortgage payment. The tenant could find themselves on the losing end of a lawsuit and the landlord might assert they lost the house because of the tenant's failure to pay. Theoretically, they could seek compensation from the tenant for any losses suffered from the foreclosure. That could include "future losses" from not being able to get acceptable financing due to the foreclosure.

I know, patently unfair, but life is tough, get a helmet.

Mike C · Answer

Jeff,

I assume this isnâ€™t your tenant but assuming the foreclosure is complete, they are usually given 30 days to vacate before a formal eviction will happen. If the owner lost the house to foreclosure, unfortunately the tenant is out of luck and should leave before being evicted formally.

Mike C

Jeff Fairchild · Answer

Correct, it is not my tenant.  He said that the piece of paper says that the landlord has 30 days to make the payments current "or else" but I don't know exactly what it said.  I'm guessing it meant 30 days till eviction.

Peter G. Cronje · Answer

I agree, the tenant has 30 days to vacate the property, or be evicted.