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I am currently renting a house that goes up for auction 4-1-2010 - do I continue to pay rent?

The owner was trying to have me buy the house but I didnt qualify - what options are there do I try and find another house (I have to have horse property and there is nothing out there at this time)
  • January 30 2010 - Eagle
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Answers (6)

A friend of mine was renting a unit in a fourplex that was just foreclosed on and she was evicted.  Tomorrow, I have to check on the status on a home that was also just foreclosed on to see if the owner/tenant is still in the home.

You may be able to go to the owner/landlord and renegotiate your lease due to the circumstances, but you are required to pay as agreed.
  • February 17 2010
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Contact fair Housing and employment in your area.
  • February 06 2010
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In the near term, hardly for anybody rents their house or apartment to you if they find out you are not paid rent on the last residence.
  • January 30 2010
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Until the lender takes back the property from the owner, you are going to need  to pay rent to the owner. Depending on the laws in your state, the owner may continue to own the property even after a foreclosure. It's called the right of redemption period. According to the internet, Idaho has a right of redemption that can be 6 months to one year, depending on the size of the property (although I would venture most properties adhere to the 6 month rule)

Has the owner attempted to do a short sale? Sometimes if the owner has a buyer lined up and the lender is willing to absorb the loss, the lender will sell for less than market value. National statistics prove that lenders lose far more money on a foreclosed home than in a short sale.
  • January 30 2010
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Yes you need to keep paying rent.  The rental / lease agreement is totally a separate issue from the owners obligation to pay their mortgage!

The good news is there are now programs designed specifically for your situation in which the lenders may work with you to let you stay in the home even after the foreclosure since they would rather have someone living there paying some money instead of worried about the home getting vandalized, etc.

A lot depends on the type of loan the owner has, who the bank is, etc.  Sometimes, investors will consider buying the home if you have a good track record on rent and they will buy it at the foreclosure sale, or prior, based on their new mortgage amount and the rent that you would pay (provided you have a good rental history of course).

If you don't pay the rent, that is yet another black mark on your credit which will make it even harder to get a mortgage down the road!

Hope that helps!  If you have more questions, I am here to assist.

Jim
  • January 30 2010
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Thoroughly review your lease and speak with a real estate agent in your local area that would be well versed on current tenant rights in Idaho.

  • January 30 2010
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