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do i continue to pay rent even if the house i am renting is going into foreclosure

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June 02 2009 - McDonough
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Profile picture for sunnyview
You need legal advice. Personally, I would not directly pay an owner who was not paying the bank who held the mortgage. Consult a local attorney or ask the board on avvo here how or if you can pay your rent into an escrow account. In some states from what I read, it is not legal for an owner to collect rent on a foreclosure. 

The good news if that an owner in foreclosure probably has bigger problems than hunting you down and paying the cost for an eviction. If you show good faith by paying into escrow, you may be able to hedge your bets. Check the laws in your state and then make your decision.
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August 12 2010
I would honor the lease you signed.  ALWAYS pay by check, and when the mortgage company forecloses, many have started to allow the tennant to stay in the property and become the landlord until the property sells. 
You don't want the risk of being evicted and having that on your record. 
Until the property is forclosed upon, your still have the legal obligation to pay rent.  One it is foreclosed upon, the lease is no longer enforceable since they probably didn't transfer that to the bank, and they would no longer own the house. 
Someone from the bank will contact you and offer you to continue renting it, or will ask you to leave--and may even pay you to do so! (cash for keys program)
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August 11 2010
The first question is where is the property located.  States differ on their laws regarding rental tenants in a situation where their landlord is being foreclosed upon.  Look to the specific laws of the state first.

If you have been named (for instance as a "John Doe" or "Jane Doe") in the summons and complaint and you have been properly served - try to contact the landlord and inquire as to the situation.  Most likely you will not receive a response.

Again the laws of each state differ -- and you may be paying money to wrong party.

Good luck in your situation.
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January 22 2010
I think that you do since you have contract signed with landlord.

If you need to find other place to rent or if you want to take advantage of the first time home buyer credit and possibly buy a home please let me know.

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January 22 2010
There are different theories on this one.  If your landlord is no longer paying the mortgage and you also stop paying rent, the landlord could enforce the lease, but then again they may be too preoccupied with the foreclosure to try to mess around with enforcing the lease.  Some suggest staying past the foreclosure so that you can at least try to get a little moving money from the bank, or offer to stay on at, say, half the rent and maintain the place so that it looks more saleable and not like an abandoned foreclosure.  You may want to contact a local tenants union(www.tenantsunion.org) and present this question to them.  Good luck!
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June 02 2009
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Yeah, but protect yourself and your deposits from getting ripped. Keep an eye on the REO timeline too so you don't have to move unexpectedly. 
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June 02 2009
 
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do i continue to pay rent even if the house i am renting is going into foreclosure
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August 12 2010 | 6 answers
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