The house I'm renting is going up for auction. Now what?

[SidVicious]

I've been renting a house for 5 years. Have a decent relationship with the landlord. I came home the other day to a note taped to my door that reads "Notice of Trustee's Sale". It's a bunch of legalese that states the house will be going up for auction on the steps of the county courthouse on July 20th.

I've never heard from my landlord that anything was amiss, and I don't know what my rights and responsibilities are. We've been in the house for 5 years, but only had a lease the first year. I'm in Arizona. Do any rules carry over from the lease? Should I keep paying him rent or save money to move? Do I just stay until someone tells me to get out? I really have no idea what to do here...

[rich!]

i'd assume foreclosure? check out the Tenants at Foreclosure Act - so you might have 90 days once the sale completes and the new owner gives notice. (since in month to month)

[joness0154]

He's not paying his mortgage....why would you be paying rent?

You're gonna get kicked out sooner or later (by the new owner or the old owner). Might as well save money.

[dunhamjr]

Have a decent relationship with the landlord.

I came home the other day to a note taped to my door that reads "Notice of Trustee's Sale".

I've never heard from my landlord that anything was amiss.

The first sentence is made completely false by the other two I left in.

If you really had a decent relationship with the LL, then they would have left you know before the notice was taped up.

I don't know your rights in AZ.

I personally would try my best to not pay another cent of rent to the current LL.

Do some research and see what you are allowed to do, etc.

Look for a new place to rent or buy. Stuff in AZ always seems cheap when my friends in Phx talk about prices.

[SidVicious]

Yeah- I looked through the document mentioned above and it looks like I would 90 days from the date of the sale, so I'm not worried about THAT anymore. I was scared I'd come home and the locks would be changed and the sheriff would be waiting for me...

Not paying the landlord anymore since he doesn't own the house anymore. did a bit of running around looking at houses today. I thought I had a decent relationship with him, till this went down. Apparently this paperwork was filed in March orapril and he didn't say a word to me...

[justinclark]

Be careful about not paying rent... Often homeowners will not pay while attempting to attain a loan mod etc.

Good luck, hopefully your ll and you are close enough to talk about this openly.

[Tinker Toy]

Talk to the former owner, the bank and whoever you can find who is involved to determine your status and where the rent money should be sent or should you continue living there but withhold the rent with intentions to pay later when you know who is entitled to the rent money and send a letter to everyone involved to inform them of your intentions and the reason.

I would hesitate about hiring a lawyer and would try to handle the situation on my own.

You obviously have been ignored and don't want to send your money to the wrong people. After 5 years you could be thought of as a reliable tenant and that is in your favor. We bought and sold a duplex with a reliable tenant who was there when we arrived and was there when we left. Being new at home ownership, I now regret not using the reliable tenant as a positive attribute included with the house.

Somebody is being really stupid for not informing you of your status as a tenant.

[SidVicious]

I took the notice to the bank that holds the mortgage and talked to a mortgage banker. He said if it's going u for auction, the bank has foreclosed probably 90 days prior to the date on the notice(mid-April- putting the filing in January sometime), and that's when the landlord would have stopped paying the mortgage.

He told me, unofficially, that I shouldn't pay him any more rent unless he can show me a letter stating that he's caught up the mortgage- which is not probable since the auction is so close. He also told me not to leave the house until I am specifically told to by the bank or the new owner. The bank doesn't care, and the new owner will have to give me 30 days after they take possession. He said if the sheriff shows up with eviction papers from my landlord, all I have to do is show them the auction notice and they'll "laugh at the landlord for wasting their time".

On the way out, a real estate agent stopped us who'd over-heard our convo with the banker. She said to stay in the house and if the buyer is a 'nice investor' that wants to remodel or move in himself, he may offer to pay for our move, she anecdoted us with a personal story in which someone gave one of her new clients $3000 to move out. She said we should absolutely not leave the house until we are made to do so, and don't be afraid (chuckle) to ask the new owner for move money.

We're planning to get into a new house beginning of June(auction is June20) but 'keep' the keys and keep an eye on the house until we get a notice of one sort or another.

These two conversations really opened my eyes about how these things work and alleviated a lot of stress. I was scared to death the sheriff was going to be here when I get home from work one day...

[Tinker Toy]

If you don't have a lease and are paying rent monthly, then there would be no reason for a new owner to buy out your lease to get you to move out. A month's notice would be appropriate.

[GeoffD]

The buyer at auction may very well be buying it as investment property. If you've been taking decent care of the place, they would want to keep you as a tenant. I wouldn't do anything until the dust settles after the auction and you hear from the new owner. Worst case, you get a notice to quit, you find another place, and you move out. You can drag that out for months if you want. No judge is going to put you out on the street in this kind of case.

The real issue ends up being last month rent and security deposit. There is a slim chance you're protected by your state's tenant law. If the auction isn't for a month or two, I'd put the rent money in escrow to cover last month and security deposit. If the auction is in May, there's not much you can do other than research your state law in this area to see where you stand. Your best bet might be to put a lien on the property so the new owner has to settle up with you. If your landlord has lost the property, chances are you're not going to get a dime out of him in small claims court. Again, this varies from state to state and you probably need an attorney who is up on local law to help you navigate. If you don't want to spend the money, the clerks at your local courthouse are often a great source of information.

[Diamond Dave]

I've been renting a house for 5 years. Have a decent relationship with the landlord. I came home the other day to a note taped to my door that reads "Notice of Trustee's Sale".

It sounds like your relationship wasn't decent enough for your landlord to tell you "hey, by the way, all the rent checks you've been sending me have been going to my other bills and not toward the mortgage. The house is being sold from a foreclosure."

[SidVicious]

Yeah. I know.

[SidVicious]

Signed a conditional lease on a place tonite. Smaller house, more efficient than the one we're in now, cheaper rent. I like to have a back up plan...

[Issam Abed]

He's not paying his mortgage....why would you be paying rent?

Because his responsibilities are with the landlord not with who the landlord owes money too.

Signed a conditional lease on a place tonite. Smaller house, more efficient than the one we're in now, cheaper rent. I like to have a back up plan...

My back up plan would have been the Auction in July

[Paul@VWvortex]

Signed a conditional lease on a place tonite. Smaller house, more efficient than the one we're in now, cheaper rent. I like to have a back up plan...

Closer to civilization or in the same vicinity?

[SidVicious]

Tiny bit farther out- Copper Basin neighborhood in San Tan Valley.

[BetterByDesign]

The bank or sheriffs office will eventually provide Notice to Vacate, but you can and should leave with plenty of time not to have that on your mental resume.

[Mike!]

How'd this pan out?

I know if it was me I would have been trying to buy my house cheap at the auction, but then again, not everyone prefers to own.