Landlord stopped paying mortgage and bank forclosed on my brothers rented home,?He was told to vacate within 90 days does he still have to pay landlord the rent for those 3 months | |
Landlord stopped paying mortgage and bank forclosed on my brothers rented home,?He was told to vacate within 90 days does he still have to pay landlord the rent for those 3 months | |
Legally your brother is required to pay rent to the new owner of the property.
The mortgage lender or bank or investor has completed the foreclosure procedure and is now the owner of the property. Neither of these have the set up to collect any rent whatsoever. In most cases the mortgage lender is probably acting on behalf of an investor such as FHA, the VA or a private investor or institutional investor.
In the letter to him was he informed to send rent to a certain place or address? Probably not. Your brother might consider informing he bank that sent him the letter that this situation was not expected and he need the rent as cash to find another place for the deposit and first month rent of a new place.
This might trigger the mortgage lender to offer cash for keys. At least he would know if the mortgage lender would be expecting him to pay rent, which I doubt.
I hope this has been of some benefit to you, good luck.
"FIGHT ON"
The mortgage lender or investor is more interested in the property being vacant than collecting rent.
If he's on a month to month lease, then he will have to vacate. Buy if he's on an annual lease, the new owner will have to honor the terms of the lease. If the bank acquires the home, he is protected by the Tenant Protection Act which will allow him to stay up to 90 days. Although the bank may offer him cash for keys to vacate early. All that said, he still has to pay rent to the landlord until directed otherwise.
He has to pay rent if he is still living in the house or he can be evicted like anyone who doesnt pay their rent. He can leave before the 90 days. What the owner does with the rent money is not his business. There is no FREE rent just because of the foreclosure. He must keep paying rent to the same owner unless notified by a new owner or the bank.
I agree with loanmaster. Your brother should ask the bank for payment instructions. If your brother stopped paying the landlord, I would be curious to see on what basis the landlord would claim the right to continued payment. It can't be the lease. A lease is a temporary grant of rights in real property, and landlord no longer has any rights to grant.
Inform the bank if he can still stay and honor the lease
They can give cash for keys to him for the trouble by paying him to move
Your brother should go after the landlord for the security deposit now landlord default therefore they should return
Does he have a lease? If so, he can stay put for the duration of that lease.
Yes, he is legally obligated to pay for the time he was there. How does HE know the lender foreclosed? Without a lease, consider that fair warning to find a new place.
He pays the new owner (the bank) the rent, he should contact them and ask. He does NOT owe rent to the old LL who no longer owns the home.
Yes, he has to pay rent for every day he occupies the property. However, the rent goes to the current owner which is the bank that foreclosed.
Yes, you brother is still obligated to pay rent while he is residing in the house. There's not free ride option here.
He cannot stay for the duration of the lease if the ownership of the house changes.