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Landlord in Foreclosure


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#1 redinsmb

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Posted 09 January 2013 - 01:04 PM

My landlord is in foreclosure, I have a lease and pay rent every month to him and he holds my hefty security deposit.

I have been watching the court web site for activity on the foreclosure since my landlord has not notified me that he is even in foreclosure. The original foreclosure documentation (notice given to him) happened in June of 2012. Nothing else is listed (that I can find) until an entry that is perplexing me. It states the "Date of Sale" as January 24, 2013 - in two weeks.

Does this mean that is the date when the property will be auctioned off and my landlord will no longer have rights to collect my rent? I am worried that if the auction happens on the 24th and I am not notified of a new owner promptly I will send my rent check to my landlord on February 1st even when he is not the owner of the property.

I'm not against paying my rent, I just want to pay it to the right person - and I'd be lying if I didn't say I was a little angry that my family may be uprooted after $1750/month rent on time every month for over a year, so if this guy isn't the owner any more I'd rather not pay for his Porsche SUV since he is clearly not paying his mortgage and doesn't seem to care what that means for his loyal tenants. I'm a little bitter, but the possibility of having to leave our home abruptly in the midst of getting my child registered for school is a nightmare.

If more information is needed I have it (property ID, etc). I just need to find out as much about where this foreclosure stands as possible so that I can protect myself and my family.

#2 Guest_FindLaw_Amir_*

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Posted 09 January 2013 - 01:09 PM

You may want to visit the Real Estate Law Center: Landlord-Tenant Law and read Tenant Eviction in Foreclosure: What Are Your Rights to learn more about your rights.

#3 redinsmb

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Posted 09 January 2013 - 01:25 PM

Thank you, I've read extensively about this matter but there is a lot of conflicting information. I even called and spoke to the Clerk's office and asked about the "Date of Sale" and the woman I spoke to gave me a big fat, "I dunno." I called the mortgage holding bank and they informed me that after the auction, if no other party purchased the property, the bank would honor our lease (as long as I fax in a copy BEFORE the auction), and that I should not send rent checks to the bank because they would be processed and then returned - except they would not be returned to me, they would be returned, in new check form, to my ex-landlord which would mean I would be essentially giving him rent for a building he no longer owns. I also know that in Illinois the landlord is required to notify me of a foreclosure happening (which he has not), this means I could technically collect a sort of penalty from him of $200 - which I have no intention of trying to collect unless I have to take him to court to get my security deposit back.

I just can't figure out this whole "Date of Sale" thing, or if there is a way to know when the building is going up for auction besides checking the auction web site every day.

#4 pg1067

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Posted 09 January 2013 - 01:43 PM

Nothing else is listed (that I can find) until an entry that is perplexing me. It states the "Date of Sale" as January 24, 2013 - in two weeks.

Does this mean that is the date when the property will be auctioned off and my landlord will no longer have rights to collect my rent?


I assume "it" refers to the perplexing entry you "found" somewhere. However, since we have no way of knowing where you read this information, we have no possible way of knowing the significance of the entry. It's certainly possible that a foreclosure is scheduled on January 24, 2013. Whether the sale will actually occur or not is obviously impossible to know. Foreclosure sales are often postponed numerous times for any number of reasons. And, I wouldn't assume that the landlord will no longer have the right to collect rent if a foreclosure sale occurs.


I am worried that if the auction happens on the 24th and I am not notified of a new owner promptly I will send my rent check to my landlord on February 1st even when he is not the owner of the property.


I can't imagine that continuing to send your rent to your landlord will be an issue since you haven't been formally notified about what's happening. That said, I would think it obvious that the prudent thing to do would be to call your landlord to inquire about what you have learned (from your follow up post, your landlord seems to be about the only person you haven't contacted).


I'm not against paying my rent


All the more reason to call your landlord.


I'd be lying if I didn't say I was a little angry that my family may be uprooted after $1750/month rent on time every month for over a year


Well...when does your current lease expire? If you're on a month-to-month lease, you can be kicked out at any time anyway. I would suggest googling something like "landlord foreclosure tenant rights." I believe there is some semi-recent federal legislation that gives tenants an extended period to vacate if a landlord loses the property to foreclosure.

#5 redinsmb

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Posted 09 January 2013 - 06:17 PM

I assume "it" refers to the perplexing entry you "found" somewhere. However, since we have no way of knowing where you read this information, we have no possible way of knowing the significance of the entry. It's certainly possible that a foreclosure is scheduled on January 24, 2013. Whether the sale will actually occur or not is obviously impossible to know. Foreclosure sales are often postponed numerous times for any number of reasons. And, I wouldn't assume that the landlord will no longer have the right to collect rent if a foreclosure sale occur

"It" refers to the information I gave two sentences beforehand - The information I got was from the court web site, the office of the county clerk's public records. I contacted the mortgage holding bank, if they take possession of the property my landlord no longer has any right to collect rent on it because he no longer owns it. My concern is not being notified in time and paying rent to the landlord who no longer holds the property unnecessarily. This foreclosure seems to be moving quickly because my landlord has done nothing to contest it, he has simply walked away.


I can't imagine that continuing to send your rent to your landlord will be an issue since you haven't been formally notified about what's happening. That said, I would think it obvious that the prudent thing to do would be to call your landlord to inquire about what you have learned (from your follow up post, your landlord seems to be about the only person you haven't contacted).

My landlord is the only person I haven't contacted because he is gone. I have no address for him (he never updated his address so all his mail comes to our apartment), he won't return my phone calls or emails. I've been trying to catch him when he comes to pick up his mail (about once every 2 weeks) but I haven't been successful yet. I contacted him about 8 months ago about an issue with mold in our bathroom due to a faucet leak and was told, "sure, I'll take a look at it" and he never stopped by (I am assuming because he knew about the foreclosure at that point), since then, he is a ghost. I'd love to speak to him about this, about what his plan is, and ask him to please keep up notified of changes in the property status that may impact us - but, you can't talk to someone you can't find. In Chicago he was legally supposed to notify us of the foreclosure proceedings, he failed to do this. I found out about the foreclosure because the person coming to serve papers to him came to our door (because the landlord never changed his address), that person informed me that the papers were for a foreclosure and they needed to contact the landlord, this is when I realized I didn't have any physical address for my landlord, he was very good at keeping it hidden and perhaps for this reason. I should also mention, he has several businesses that keep getting sued and he closes them down and starts a new one, again, his business mail comes to me and his lawsuit papers have been attempted to be delivered to me as well. Clearly he likes to stay off the grid.

Well...when does your current lease expire? If you're on a month-to-month lease, you can be kicked out at any time anyway. I would suggest googling something like "landlord foreclosure tenant rights." I believe there is some semi-recent federal legislation that gives tenants an extended period to vacate if a landlord loses the property to foreclosure.

I've done this. My lease is up August 31, 2013 unless the property changes hands, at which point the new owner can give us 60 days notice to vacate the property if they choose to. Wells Fargo has told me that if the property is reverted back to them, they will honor the lease as long as I fax in a copy of the lease BEFORE it is auctioned (I learned this today and have the paperwork ready to fax tomorrow). The bank representative also informed me that if the property is reverted back to Wells Fargo and I send in a "rent check" they will process it toward the written off loan and send it back as rejected (due to a closed loan) to my ex-landlord, who at that point would have no right to collect rent because the bank would hold the deed. The representative has stated that if the bank takes possession I would have the right to terminate the lease at any point (since they are just going to honor it). She did not inform me of where I would be sending my rent, but I assume that once the deed is in the bank's name I would be contacted by the bank to set this up (given that I will have sent in a copy of our lease).




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