Dave Ramsey says: Renter should talk to attorney about owners foreclosure
A renter hasn't heard from the property owner since being notified the home was going into foreclosure. Dave Ramsey says get a lawyer.
(AP Photo)
(AP Photo)
Dear Dave,
I’ve been living in a rental house for some time now. I was just told by the owners that the house is being foreclosed on next week.
I’ve tried to call and email them, but haven’t heard anything back. Should I go ahead and pay rent for this month?
— John
Dear John,
I wouldn’t.
The bottom line in a situation like this is: You’re giving them money and they’re not paying the bills.
I wouldn’t give the owners another dime until they return your phone calls or talk to you in person and let you know the details as to what’s going on with the house you’re living in.
In the meantime, I’d advise speaking with an attorney and a real estate professional in your area to find out exactly what your rights are at this point.
Many places require a 30-day notice before renters are required to vacate a property.
Good luck, John!
— Dave
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Comments
2 Comments
I went through this a couple years ago. Pay the rent. You are legally bound to pay. Even if the landlord is not paying their bills. Once they foreclosed, I lived in the house for 3 months rent free. Until the bank sold the house to the new owners and I just continued on with the new owner. If the bank wants you out. They have to give you 90 days minimum to find a new place. Hope this helps.
That's a fine line. There are laws in Arizona that somewhat protect consumers. However, nothing in the lease (any standard boiler plate one, anyway) states rent will go towards the mortgage. In simple terms, the landlord and tenant have an agreement for monthly payments for a set amount of time. That doesn't go away if they aren't paying the mortgage. There is a risk the landlord can come for damages for breaching a lease.