I rent in an apartment complex in the US. Today we (along with all other tenants) received a notice from a lien holder (possibly by mistake), that the owner is in default and in 30 days, a “Election to sell under deed of trust” will be enforced. It says that a sale date will be set 3 months after the recording which put the sale date in mid May.
Our lease is up before that, and we’d like to renew (shoot, I’d like to buy the unit), but wondering if this is a good idea… renewing that is as they will not sell at this point.
It seems the complex would be sold to the highest bidder, but then what… could we be evicted even with a valid lease? We are of course continuing to pay rent.
I do not want to leave for holiday or somesuch and return to find my stuff gone.
The place was originally built to sell the individual units, but they are only renting now (none were sold). Occupancy is about 50% and the place is new. Thoughts?
Nobody can really advise you on an apartment located somewhere in the U.S., you’ll need to give at least the State, and maybe even the city. Laws can be different on this kind of situation depending on the jurisdiction.
Check the legal statutes for your city, county, and state. Those laws differ widely from place to place.
New Jersey recently passed a law that buying a foreclosed property is not sufficient reason to evict an existing tenant. Evicting someone with a valid lease is rarely done. The courts figure you knew about the lease going into the deal.
If the bank does foreclose, see if you can buy your unit. They might be willing to give you a good deal to get it off their hands in today’s market.
The place is in Nevada. I’d love to buy it, but worry that there is no home owners assoc or that it would be just a handful of people in a big complex - and I/we would be on the hook for all the upkeep. Really a drag as I like this place a lot.
My real concern is that I travel often and don’t want to return to find I was evicted in my absence.
From what I can tell, in Chicago (and perhaps elsewhere in the state), if a tenant is living in a rental under foreclosure, they are evicted by the sheriff if necessary. That’s because late last year, the Cook County sheriff’s office stopped doing it for a while (I believe they’ve resumed) because too many tenants had not received notice from the landlord/bank/whatever. So you might not have received that by mistake. Sorry that this probably isn’t applicable to your situation, but just a warning that you might not have options in this case.
So should I contact the lien holder (a title company in a different state)? We (all the tenants) basically got a debt collection/ pending foreclosure notice sent to the owner.
If they evict everyone, then what - surely whoever owns it will want someone living here… either renting or purchasing it - I can do either and could be a cash buyer if need be. As the place is only a few years old, I can’t see them bulldozing it.
There are so many variables that I cannot answer your question. It would not be a bad idea to write a letter to the lien holder stating that you would be very interested in the right of first refusal to purchase your unit as a cash buyer.
In New Jersey, an evicted tenant’s possessons have to be stored for thirty days. After that it’s considered “abandoned property” and the landlord is free to disposs of it as they see fit. That’s how I got the shoes I’m wearing right now.
It seems to me that a buyer would love to have some of the units occupied already since those are a steady source of income. Evicting everyone makes no sense except in the case of a single family home. In an apartment complex, the owner *wants *the units leased.
According to a Documentary called “Where can I live?”* empty properties are more attractive to developers and speculators then ones with tenants, because it is easier for them to remodel/renovate/demolish/whatever without people living in the building. Also, less maintenance is needed if no one lives there. The fact that your complex is only half full suggests that the property is not the most efficient use of the land at this time. This could be due to the economy, but it could also be due to other factors in your neighborhood. Don’t be surprised if you are not offered a chance to sign a new lease.
“Where can I Live?” is somewhat out of date, and we are certainly living in unprecedented times in terms of the real estate market, but I feel the underlying concepts still apply.
Although I primarily do industrial as a commercial real estate agent I’ve sold a few apartment complexes, and in most cases in place tenants generating cash flow are the main economic rationale for which they were purchased.
Unless the units are being rented at seriously under market rates or the buyer anticipates a completely different use for the property a buyer would be insane to come in and throw out good paying tenants, especially in these economic times when many tenants are defaulting. IIRC Nevada real estate in general is in the crapper and you don’t screw around with good credit tenants.
Legalities and tenant rights aside unless your rents are way under the market I wouldn’t sweat it too much even of there is a new owner. YOU and the other paying tenants are the reason the units are worth anything as an income property. You are the geese laying the golden eggs and there had better be an overwhelmingly good reason to evict/kill you.
We are getting a good deal on the place… about $0.70 per sq ft. I am just a bit afraid to leave for along periods… if I get an eviction notice while I am out of the country it’d be umm… not so good.