Upcoming Foreclosures

HELP! the condo we're renting is in foreclosure!?

we just got a notice from a law firm in the mail that the condo we live in is in foreclosure. our landlord has our last month's rent and security deposit and we don't want to lose them -- especially the security deposit. the real estate agent who got us the place says we should STOP PAYING RENT NOW, and also contact the landlord to ask for the deposit and last month's rent back and negotiate a lower rent until we leave. if they won't give the money back, she says we should stay at least 2 more months (the amount we've paid for with the security deposit). is this okay? is there anything else i should know? i don't want to end up losing money or out on the street with my kids, but i also don't want to ruin my credit or look like a bad tenant. thanks so much for your help, lisa in florida

Public Comments

1. Check the hud.gov website for help under tenant/landlord laws, your not the only one this is happening to. If you are that hard up for a deposit on a new place you could contact rental assistance or cash assistance in your area. I have heard that FL has been hit hard lately, so hopefully help will be available to you and your family.
2. the condo is in foreclosure but as far as i know, if you are renting it, you get 5 months before they can boot you out (the bank) from a new law... Also the landlord is obligated to give back security deposit or i believe that you can sue... honestly though, i am unsure about if you should stop paying rent as that could get you booted by the landlord
3. You may be covered by the federal Protecting Tenants at Foreclosure Act. If so, you'd be protected from eviction for at least 90 days following a foreclosure, and for the remainder of the term of the lease if that term exceeds 90 days. If you fail to pay rent to either the landlord (while he's still the owner) or bank (should the foreclosure actually take place), the law does not apply to you and you can be evicted like any other non-paying tenant.
4. The real estate agent is wrong! Your landlord still owns the property and is entitled to collect rent. That said, you may try to negotiate with him/her regarding your security deposit. If you can't come to an agreement, and don't pay the rent he can evict you. You should continue paying rent to your landlord until otherwise advised. In Florida foreclosures are taking 9 to 14 months, so you can probably stay until your lease expires. You have a couple things in your favor. The tenant protection act of 2009 will permit you to stay up to 90 days after foreclosure. Plus (little known) if your landldord's mortgage is FNMA backed, you can stay up to one year after foreclosure. Google your county's name and "clerk of the courts." That's where foreclosures are filed. You can then search foreclosure action (with your landlord's name) and ascertain the status of the action. Florida recently enacted a law that says if the landlord doesn't pay the HOA fees, they can hold a tenant responsible. Talk to an attorney. realtor.sailor