In light of conditions in the housing market, many issues have arisen between landlords and tenants. One question we often receive is, "If my landlord is going through a foreclosure, do I still have to pay rent?" The answer is yes, you have to continue paying rent. Your landlord's issues with his or her lender have nothing to do with the lease agreement, and your landlord can still evict you for your failure to pay rent. We also hear, "I am a tenant, so why have I been named as a defendant?" The lender has named you as a defendant in the foreclosure proceeding because, as a tenant, you have an interest in the property. Although you do not have to worry about being held liable for any money damages under the promissory note, the lender can recover the house. For tenants served with a summons and a complaint, it is advisable to consult an attorney and to file an answer. As a tenant, what options do you have? Often, the landlord will need the tenant's cooperation if he or she is trying to short sell the property. Because the tenant may have to make the property available to prospective buyers, and because of the overall inconvenience of the foreclosure process, many landlords and tenants modify the lease agreement so that the monthly payments are lower than under the original lease agreement. Of course, both parties must agree to this modification.
These are just a few of the issues that landlords and tenants have when their houses are going through the foreclosure process. If you are a landlord or a tenant and your house is going through the foreclosure process, please feel free to contact the Law Office of Conrad Willkomm, P.A. Take advantage of our free consultation!