The house I lease is up for auction...

Beaverton, OR · Member since 2014 · 3 posts · 2 votes

I have a year left on my lease and I have not missed a payment to owner even though she was in default. Will I be kicked out the day after the auction if someone buys it? I'm worried the sheriff will lock me out and I will lose all my belongings! Very nervous.

Derek

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Jay HinrichsBusiness Member

Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes

12y

@Derek Moya

@Account Closed

Joe is correct on the owner occupied.. however as I was one of the larger foreclosure buyers in this county for going on 10 years I probably will know who bought your home if it indeed sells 3P

And most likely its a Judicial foreclosure as Oregon through out TD sales ( all thought those are coming back).. Go Right over to Hillsboro to the county court house walk into the recorders office and record your lease.. this will give constructive notice and it will cloud the title. along with the 6 month right of redemption ( now many of the guys I know will buy redemption rights up front) this may not be the case.. And again unless as Joe states someone buys it to live in ( Very RARE) if you have a bona fide lease at market rate.. the new purchaser is bound to the lease.. And not to worry only about 5% of homes that go to auction are sold 3rd party. .You will probably be dealing with the asset manager or bank that took it back.. They won't give you a hard. time..

However as I stated recording the lease cost you 20 bucks or so but will all but assure you your tenancy through the term.. Not many title companies or any will write around that exception and give clear title.

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George Maka
Irvine, CA · Member since 2013 · 144 posts · 67 votes
12y
@Derek Moya Do you have a question? Are you interested in buying the property? Or are you looking for someone to maybe step in and buy it?
George
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Michele FischerPro Member
Rental Property Investor · Seattle, WA · Member since 2013 · 2k+ posts · 1k+ votes
12y
I think people lose sight of the fact that this Renters forum is a place for renters to ask questions; it tends to get used for landlording questions.
@Derek Moya , you're in the right place. I'm about an hour away from you, FYI.
If you have a lease rather than a rental agreement, it should be honored and a move out should not occur. Hopefully an investor will buy it rather than someone who wants it as a personal residence, and you can stay as long as you'd like. Keep paying rent, be friendly when the new owners come around, and be sure to ask about your deposit; deposits don't always transfer well in foreclosure situations.
You may get a notice to start sending rent elsewhere. Make sure it is legit, but it is not uncommon for a bank to be the landlord between owners.
Hope that helps!
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Pete T.
Real estate investor · Las Vegas · Member since 2013 · 798 posts · 171 votes
12y
Agreed, your lease should be binding to the new seller- I would keep up to date on the situation and investigate your state laws as well.
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Wayne Brooks
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
12y
The tenants in foreclosure act protects your lease for up to one year from when "notice is served" of the foreclosure, if it's at "market rate". Apparently, different states interpret when "notice" is. The exception is if a third party buys it who intends to owner occupy, then your term is reduced to 90 days.
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Account Closed
Dallas, TX · Member since 2013 · 4k+ posts · 744 votes
12y
If the buyer is a home owner start looking for a place to live. I think once it is auctioned off the new owners are not responsible for your deposit.

Joe Gore
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
12y
@Derek Moya
@Account Closed
Joe is correct on the owner occupied.. however as I was one of the larger foreclosure buyers in this county for going on 10 years I probably will know who bought your home if it indeed sells 3P
And most likely its a Judicial foreclosure as Oregon through out TD sales ( all thought those are coming back).. Go Right over to Hillsboro to the county court house walk into the recorders office and record your lease.. this will give constructive notice and it will cloud the title. along with the 6 month right of redemption ( now many of the guys I know will buy redemption rights up front) this may not be the case.. And again unless as Joe states someone buys it to live in ( Very RARE) if you have a bona fide lease at market rate.. the new purchaser is bound to the lease.. And not to worry only about 5% of homes that go to auction are sold 3rd party. .You will probably be dealing with the asset manager or bank that took it back.. They won't give you a hard. time..
However as I stated recording the lease cost you 20 bucks or so but will all but assure you your tenancy through the term.. Not many title companies or any will write around that exception and give clear title.
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Account Closed
Dallas, TX · Member since 2013 · 4k+ posts · 744 votes
12y
@Jay Hinrichs,
A recorder lease will not hold up in court here in Texas if you are trying to cloud the title base on your lease. And now let's say wherever you are located, and you do record the lease do you have funds to fight it if they say you file a fraudulent lien? All they will do is bond around it, and now you will have to fight the insurance company, and they will pick your bones clean. You gave bad advice on this one Jay.

Joe Gore
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
12y
@Account Closed
Joe disagree... title companies in our market will balk.. this will never go to court. And even if it did it would take the year of the lease term to go through the motions. and as long as they have a valid lease it would never be considered fraudulent.
And a valid lease in OREGON will definitely cloud the title . .Been there done that on both sides of the issue. You have Marshal law in Texas we are liberal here in Oregon :)
Bonding around this type of action is RARE as hen teeth and just won't happen the only way that would happen is if the person that wanted to bond around it, Was a Major and I mean major player in the RE business and strong armed the title company. and Remember we don't use attorneys here in Oregon or the west coast to fight these battles. Its title companies and bean counters.. the bean counters are not going out on the limb to write around this type of transaction. Where I have run into this is with foreclosures I bought that had leases for nursery stock and they were valid and recorded.. I had to wait one out 3.5 years. If it had been twenty I would still own it. If this person has a VALID market lease there should be no problem unless as you state someone buys it and can prove they are going to move in the house.. Which again just does not happen in our market here in the foreclosure world.. I Have seen it happen maybe 3 or 4 times in 20 plus years.
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Account Closed
Real Estate Investor · Phoenix, AZ · Member since 2013 · 58 posts · 32 votes
12y
Laws vary by State. Contact your Attorney Generals Office. They usually have helpful information regarding tenants rights laws for your State.
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Taylor Shields
Real Estate Investor · Lake Oswego, OR · Member since 2014 · 64 posts · 29 votes
12y
Jay is right about tenant rights in Oregon. Tenants practically have more rights than the owner in Oregon.
@Derek Moya
To answer your question as directly as possible....NO you will not be kicked out the day after action. No matter who buys it, a private party or the bank. They cannot lock you out of the property the day after the auction. Even if you were a squatter living there illegally they wouldn't be able to do that.
The WORST POSSIBLE CASE if you don't cooperate with the new owner is that they would have to evict you and that would take at lease one month. That's the worst case.
The MUCH MORE PROBABLE case is that the new owner will be very reasonable with you because you seem like a great tenant who just got caught in a bad situation. If the bank takes control of the property then you have even less to worry about and you will probably get to stay there rent free for a while and they might even pay you to move out. Just to confirm what Jay said again......The chances of a retail buyer purchasing this property are about .0000000000001%.
Just go record your lease at the courthouse like @Jay Hinrichs said and then sit back and relax until you hear from whoever purchased the property (either the bank or a 3rd party). I would even go to the auction and see who gets it, if a 3rd party investor buys it you can just go introduce yourself!!
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
12y
@Taylor Shields
Very good Taylor I live in Lake O as well. I am trying to think in the 20 years of buying courthouse steps I really can recall only 2 bidders that were owner occ. we just don't have homeowners running around with 300 to 500k in their jeans by the time the investors run up the bid its really not that great of deal especially when you don't get title insurance.
Maybe this person who is concerned can give us an address off line. I can have my folks at the title company give me a date down and we can asses whether this will go to sale or not.
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Account Closed
Dallas, TX · Member since 2013 · 4k+ posts · 744 votes
12y
@Jay Hinrichs,
Can you post the Oregon case law where a tenant can file their lease agreement to cloud the deed? I could not find it.

Joe Gore
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Rick H.
Lender · Greater LA/Orange County area, CA · Member since 2012 · 3k+ posts · 3k+ votes
12y
Jay Hinrichs - I'm Cali-centric, it's true, but wouldn't a lease recorded after a trust deed be extinguished by the act of the senior lien going to sale?
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
12y
@Rick H.
I don't do case law I do what is reality.. a cloud on title will keep a property from selling unless a buyer is willing to take title with the exception ( which most aren't and no lender will allow) believe me I have been there done that with title companies and clouds on title be it this type of issue or mechanics liens they will not bond or write around them without a huge deal and a individual investor is not going to get that to happen. And we are just not a litigious state if this owner clouded the title they could just stay there while they get nasty letters etc etc and by the time the year is up they just up and move who is going to sue for damages crap the banks have enough on their plate , a purchaser at foreclosure has no standing they have no right to court costs or anything else its buyer beware as WE ALL KNOWS when we buy trustee's deed properties or Sherrifs deeds.
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Account Closed
Dallas, TX · Member since 2013 · 4k+ posts · 744 votes
12y
@Jay Hinrichs,
Just what I thought no case law and it will not stand up in court. It is a shame Oregon will let a low life do that.
Joe Gore
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
12y
@Account Closed
Joe I doubt this tenant is a low life.. Many good tenants with valid leases get screwed by the landlord that is ripping the rents.. YOU KNOW THIS I KNOW YOU DO> Now if someone puts nI a false lease or fraudulent lease after the fact I would concur with your thought process. but on the face we have to think this person rented the house on a lease has paid the lease payments and is the injured party here.
There does not need to be case law by the Way ITS a FEDERAL LAW with the new foreclosure rules you should look those up;
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Account Closed
Homeowner · Pittsburgh, PA · Member since 2014 · 854 posts · 511 votes
12y
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Greg H.Pro Member
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Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes
12y
From the Oregon.gov website :
3. What does a foreclosure mean to
me as a tenant?
Many renters will be forced to move out of their
home after the landlord is foreclosed upon and
the home has new owners.
If you are on a month to month rental
agreement, the new owner is required to give
you a 90 day notice to move out.
If you have a lease, the owner must allow you to
stay in your home until your lease expires. If
your lease expires in less than 90 days, then the
new owner must give you 90 days notice to
move. Regardless of when your lease expires, if
the new owner wants to move into the home as
their primary residence, the new owner can give
you a 90 day notice to move.
The new owner can only give you a notice to
move out once they become the owner of the
home. You should do your best to move out by
the date in the notice. If you are unable to move
out before the notice expires, you should call the
new owner to see if they will give you more time
to move out. If you have a disability that makes
it difficult for you to move out, you may request a
reasonable accommodation for more time to
move out.
Once the notice period is up, the new owner can
begin an eviction court action to force you to
move out.
* If your lease/rental agreement was signed
before the landlord obtained the loan that is
being foreclosed upon, your rights might be
different. You should take to an attorney about
your rights.
4. I have a Section 8 voucher. How
will a foreclosure affect me?
Tenants with Section 8 vouchers who are under
a fixed term lease are protected by “good cause”
eviction statutes. This means that the new
owner must honor your lease and the Housing
Assistance Payments (HAP) contract. A new
owner can only terminate the lease and HAP
contract by giving you at least 90 days notice of
termination prior to the end of the lease. After
the first year of living somewhere, Section 8
tenants often become month to month tenants. If
you have a Section 8 voucher and have a month
to month rental agreement, the new owner can
give you a 90 day notice as described in #3. If
you find out that your home is in foreclosure,
contact the Housing Authority right away.
If you have a different kind of subsidized
housing, contact your Legal Aid office for more
advice.
5. Can the locks be changed,
preventing me from getting my
belongings?
No. Your locks can not be changed until the
new owner obtains a court order of eviction from
the court. You will be served with a summons to
appear in court when the owner begins an
eviction action. If the locks have been changed
and there has been no court order of eviction,
contact Legal Aid right away
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Greg H.Pro Member
Moderator
Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes
12y
@Account Closed
So a tenant is a lowlife if they try to protect their interest in the property ?
All that recording a lease or any document for that matter does it give public notice that the document exists. A leasehold interest is an interest in the property
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Steve Babiak
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
12y
Originally posted by @Account Closed:

@Jay Hinrichs,
Can you post the Oregon case law where a tenant can file their lease agreement to cloud the deed? I could not find it.

Joe Gore
I find it ironic that the guy who has been asked to post links to his information sources in several threads without doing so in reply, is now here asking for the same sort of thing that he has ignored to supply. What nerve ...
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Account Closed
Dallas, TX · Member since 2013 · 4k+ posts · 744 votes
12y
@Greg Hall,
I understand I struck a nerve with you. Now lets everyone on BP that is a renter who has a lease just run down to the recorder's office and cloud the deed because they have a lease in place so they are protected. Greg this afternoon I will be meeting one of the eviction judges for lunch, and I will ask how he will act in his court if a landlord sued a tenant who clouds a deed with a lease.

Joe Gore
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Account Closed
Homeowner · Pittsburgh, PA · Member since 2014 · 854 posts · 511 votes
12y
@Account Closed
This thread isn't about every renter that has a lease. It is about ONE renter who has a lease and is concerned he is going to get put out on the street. You are so obsessed with case law and how your judge buddy would react that you can't see just how out of line your "low life" comment was.
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Account Closed
Dallas, TX · Member since 2013 · 4k+ posts · 744 votes
12y
@David R.,
I understand you are a renter taking up for another renter who is good, but no one is stepping on the rights of a renter, but the new owner can keep the tenant or file for eviction and a good chance if the new owner read the lease the old landlord could have an escape clause in the lease.

Joe Gore
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Greg H.Pro Member
Moderator
Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes
12y
@Account Closed
If this is the same judge you said can just kick a tenant out during an eviction and does not have to respect the appeal period which is mandated by state law I cannot wait for the answer !
There is a zero percent chance that a tenant recording a lease is actionable unless fraud is involved. ALL recording does is say to the world "this document is here". For example, when I got out of the Army(hard to believe it was 25 years ago!) we were encourage to record our DD214 which allows us to easily retrieve if lost
I am not sure it using the term "cloud" is correct by recording a lease but it lets everyone knows it does exist
And.....referring to the OP, Joe if you read Oregon law you cannot just evict the tenant if you choose. If you are an investor, you must honor the lease and if you are an owner occupant(Very Rare) you must give the tenant 90 days
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Account Closed
Homeowner · Pittsburgh, PA · Member since 2014 · 854 posts · 511 votes
12y
@Account Closed
Is your reading comprehension limited to case law? The word homeowner is directly below my name.
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