QUESTION
If the landlord is facing foreclosure, who do I pay rent to?
Asked on Dec 11th, 2012 on Landlord and Tenant Law - Hawaii
More details to this question:
I have received legal documents from the bank, that my landlord is facing foreclosure, but foreclosure has not yet happened. My landlord is threatening to evict but I am not sure if I should pay him or the bank. I have the rent in a separate escrow-type account.
8 ANSWERS
Continue to pay your landlord until you are directed to pay another entity by court order.
Answered on Dec 20th, 2012 at 5:36 AM
You should pay the landlord until you are notified that they are no longer on title. To protect yourself you should stay informed about the progress of the foreclosure.
Answered on Dec 14th, 2012 at 11:05 PM
You have a contract/lease with your landlord and until you are told differently you should continue to pay him rent. Once the foreclosure goes through and either the bank takes the property or sells it at auction, you will be told to whom to pay rent.
Answered on Dec 14th, 2012 at 12:40 PM
Chapter 13 Bankruptcy Attorney serving Winston-Salem, NC
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Love and Dillenbeck Law
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Until the foreclosure is final, your landlord is entitled to the rent. Now, there is a law in place called the "protecting tenants in foreclosure act." You should look it up, it will protect you from eviction from the mortgage company after the foreclosure for 1) 90 days if you have no current lease and 2) to the end of your current lease term. There is no requirement to rent to you after that. Now, you should consider how much time you have left on your lease. If it is easy enough for you to leave, you might want to consider using your rent to move to another, more stable home so you can leave on your own terms.
Answered on Dec 14th, 2012 at 3:29 AM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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Your obligation of landlord on your lease, and your landlord obligation to the bank are separate and distinct. If you do not pay them rent he certainly can pick you for the nonpayment.
Answered on Dec 14th, 2012 at 3:09 AM
You should pay the landlord until he/she loses the property. You're in a ticklish situation, because your landlord, lacking cash and losing his/her property, may not return your security deposit to you. What you'd like to do is wait until the last month of the foreclosure process, and then withhold your rent, so your security deposit can be used as last month's rent. The problem is many lenders delay the foreclosure sale, and you'd be subject to being evicted. You'll need to follow the foreclosure process closely.
Answered on Dec 14th, 2012 at 2:01 AM
Steven D. Dunnings
Your lease agreement is with the landlord not the bank.
Answered on Dec 14th, 2012 at 12:42 AM
Real Estate Attorney serving Honolulu, HI
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Zahaby Law Offices
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The landlord owns the real property until the bank (or recordation) notifies you otherwise. Therefore, if you do not pay the rent to the landlord the landlord has the right to evict you until the real property is titled in the bank's name or a new bidder's/buyer's name.
Answered on Dec 14th, 2012 at 12:25 AM