…and the landlord found out more than a month ago and never told us. This is not going to go well, I can tell…
This happened to us last year at our apartment in Chicago.
Since the landlord hadn’t informed us in writing within 7 days of the start of the foreclosure process, we were able to break our lease with zero notice.
Also, because our rent was just being kept directly by the bank, and not going to our landlord, we stopped paying rent and instead put it into a kind of “escrow” savings account so that we could give it to the right person once they came for it. After a year, we haven’t heard a peep from the old building management or the bank, so we are no longer holding onto that money - but who knows what might pop up down the road.
Anyway, be sure to look into your rights where you live. There are usually very specific guidelines for what happens during a foreclosure and it’s usually pretty tenant-friendly.
I think you’re in Chicago, right? If so, here is the pertinant city ordinance that we used to get out of our lease early:
http://www.chicityclerk.com/tenantsVRSlandlords.php#5_12_095
The language in it is pretty clear. Especially about the requirement of notification in writing and how long they have to do so.
Thanks, Bob Duca. Yes, I’m in Chicago. I have no idea what we’ll do right now - the SO’s not even home to discuss it yet. We really like the place, even though the landlord is a bit cuckoo for cocoa puffs, and our credit/employment is just in the toilet right now due to medical bills and life craziness. I really don’t know if we *could *find someone else to rent to us, honestly.
The guy who knocked on our door this morning was from the Circuit Court, with information for the homeowner, who’s, y’know, dead (our landlord is the one in charge of his estate, and lives several doors down). When I and another tenant answered the door, his spiel changed from “how a homeowner can get legal help” to “here are your rights as a tenant.”
We don’t even have a written lease, but a verbal month-to-month. At least the pamphlet assures me that this doesn’t change our rights - whatever happens, we need to be given 90 days notice if we’re asked to leave because of the foreclosure.
sigh My first best hope is that the landlord works it out with the bank. My second best hope is that a new owner will let us stay at the same rent, and maybe even give us a lease. My third best hope is that this all drags out in the courts long enough for me to get a job so we can get a new place.
Didn’t you say that you were really close to graduation and boards? I hope it works out for you.
Crap. What a horrible thing to find out like that. Please let us know if we can help in any way, okay?
How close are you to being finished up?
Taking the NCLEX (Nursing “Boards” Test) on July 9th. “Within” four weeks after that, the state should have my license for me. Assuming I pass, of course. I’m not allowing myself any other thoughts about THAT!
I’ve already been applying, but no calls. I hope it’s because I don’t have my license yet; used to be that they’d hire people License Pending, but I’m hearing from my classmates that unless you were a CNA somewhere during nursing school and can get hired by your same employer as an RN, License Pending hiring is just Not Done anymore.
Talked it over with the SO, and we’re just going to take a wait and see approach. The whole thing may blow over (if she can settle with the bank) or it may take a while in the courts or if it’s sold, the new owner may keep us on. Really, we’ll have 90 days notice if things get icky, so until that happens, there’s not much to do, seeing as we don’t *want *to move. We did notice ourselves noticing For Rent signs on the block on our way home today, though. Good to keep in the back of our awareness, I guess.
Oh, and the neighbor now tells me she heard the landlord hasn’t paid the water bill in months. Yippee.
Good luck on the boards - I have confidence. I’d think you’ll find something quickly after you pass your boards - even if you end up doing temp nursing. I’ve never known a nurse to be out of work for long unless she was picky about what she wanted to practice or the hours she wanted to work (or he).
Why did you stop paying rent? The bank was entitled to that money, I’m sure, based on the contract.
I don’t see why a new owner would take you on, unless you just mean the bank? They probably would rather rent to you and collect money while it’s on the market than have the place sit empty and income-less, but once they sell it to a prospective homeowner, you’ll almost definitely have to vacate. People aren’t buying homes with the intent of renting them out right now.
Shitty luck, but don’t let it ruin your exams concentration. It’s truly not your problem. 90 days move-out notice is way more than most month-to-month renters could ever dream of.
So basically, don’t worry. The sheriff isn’t going to knock on your door and throw your stuff on the street this week or even this month 
Is it a multi-unit building? Then I would guess that any potential buyer would love to keep you, especially if you have a long track record of good rent coming in. We look at multi-units, and a current tenant is fantastic. We’re looking at a duplex right now, and have every intent of re-signing the leases with the tenants if we buy it.
My biggest concern would be the maintenance issues. A bank usually drops the ball on this, unless it’s a big deal, like a broken water pipe spraying water. A leaky sink faucet, not so much. If you do have to take care of anything like that, and can afford to do so, keep track of your expenses. You can apply for repayment from the bank, or perhaps ask the new landlord if they’d credit you.
Do you have the name and number for the attorney for the bank? It may worthwhile to contact them to ask exactly how maintenance will be handled. Particularly yard work in the summer. Some banks have companies they work with to do it, and some banks just blow it off completely.
Well, it’s a three unit building, far too big for a single family conversion in this area, and condo conversions have ground to a halt around here. It’s firmly zoned residential. So whomever buys it will either rent it or raze it. You’re right, not many people are looking to buy small apartment buildings right now, so maybe it’ll just sit on the market for a good long time anyhow…
Heh. Well, that wouldn’t be any change at all! Since we’ve moved in, my SO has done a ton of odd jobs around here that we keep receipts for and give to the landlord in lieu of some of the rent (All jobs <$30; anything greater and we won’t do it without a written agreement.) It’s a good thing he’s handy, he’s fixed several faucets, an oven, a dryer in the basement, some broken concrete… She’s been just fine about it, as long as he talks to her about it beforehand. As well she should be, since he doesn’t charge her for the labor, just takes the materials cost off the rent.
My most immediate concern is this water bill rumor. My renter’s rights in foreclosure pamphlet says to call the police non-emergency number if the landlord doesn’t keep providing the utilities she’s promised to. But what will they do if the water’s shut off for non-payment? It’s not like I have the cash to pay for months and months of whatever the water bill must be for this place full of leaky faucets and running toilets!
This is how my friend found out that her landlord was being foreclosed on- they cut off the water. You might want to check on how long until that happens. On a bright note, her being forced to move allowed her to qualify for a city program wherein she was able to buy her own house, so you know, door closed, window open, yadda yadda. Good luck!
We found several online tenant resources that suggested putting rent into an escrow account until everything was settled w/ the foreclosure.
From what I understood, during a foreclosure it’s not entirely clear who should be receiving that money and just because the building owner’s bank was seizing our rent payments as they came in, it doesn’t mean they’re going to be the ones that would ultimately have the right to that money depending on what kinds of liens and debts were owed by the owner.
We held onto it for quite awhile and then decided that it didn’t seem like they were going to be coming after it anytime soon. Granted, they still might, and that’s fine… we’ll pay it. We just didn’t want to be funneling money to a bank that might not actually be entitled to it in the end.
Honestly though, I’d be surprised if anybody had correct records of what was paid or not paid during the entire process - it was a mess w/ two different companies claiming to be our new managment company and asking tenants to begin paying them (before the court had actually assigned one) and our old company being impossible to get in touch with (their website disappeared and their phones were cut off) so we didn’t even know where we’d be able to send a certified letter or anything. It was quite the crazy ordeal.
Oh, cool then. The way you described the place, I thought it was just a plain ol’ house that belonged to someone’s dead relative.
Even less nothing to worry about
Your NCLEX are right around the corner, so that’s good. Something off your plate. I’m sure you’ll knock them out of the water.
As for everything else, sounds like you have it as under control as you can. I hope the water thing turns out to just be a vicious rumor. Though it does sound like you should follow Bob Ducca’s approach and start putting your money in escrow (if you can confirm the foreclosure).
Good luck!