Just wondering if anyone here has experienced this before. The unit I am renting from just went into foreclosure. I am basically renting from the owner of the condo unit. The building/units are very nice (redone 06, guy paid north of 1.5mm, located central park south area). Anyway, I called the guy up and he said despite the notice I recieved they are working on a loan and not really in... [more]
Just wondering if anyone here has experienced this before. The unit I am renting from just went into foreclosure. I am basically renting from the owner of the condo unit. The building/units are very nice (redone 06, guy paid north of 1.5mm, located central park south area). Anyway, I called the guy up and he said despite the notice I recieved they are working on a loan and not really in foreclosure (I am assuming he is working on a loan modification) Regardless, how long can I stay in the unit , i know there is a lengthy foreclosure process in new york city (I am pretty sure the loan went into foreclosure in Nov 08 after looking it up). What rights do I have if any as long as I am currently still sending in the rent? Also not really sure the deposit I gave will ever get back to me, what can I do about that other than sit a month and not pay rent?
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Response by MatWith1T
over 16 years ago
Posts: 66
Member since: Mar 2009
If they manage a short sale, then the buyer assumes the property's liabilities and obligations, such as leases. But it is up to the new owner whether to renew.
If he/she forecloses - You have zero rights, basically. Sorry. But as you said, foreclosure takes forever - and after they finish that, then they have to go through the 4-6 months to evict you... even if you have no intent to stay. It will drag out long enough that the bank probably won't even bother (but they certainly will not renew your lease)
(and while its not the nicest of things, yeah, I would just skip that last months rent and let them keep the security deposit.)
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Response by 30yrs_RE_20_in_REO
over 16 years ago
Posts: 9877
Member since: Mar 2009
"foreclosure takes forever"
Not if it's a Coop!
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Response by 30yrs_RE_20_in_REO
over 16 years ago
Posts: 9877
Member since: Mar 2009
OOPS!!!! missed the "condo unit" part. (but the point that Coops take almost no time to foreclose on is still valid).
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Response by MatWith1T
over 16 years ago
Posts: 66
Member since: Mar 2009
I'm not 100% clear on how coop foreclosures work... I just imagine there's some lever the board pulls that catapults delinquents out and then they close the drawbridge and sic knights on the bank to keep them at bay.
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Response by bond2008
over 16 years ago
Posts: 8
Member since: Oct 2007
if i have no rights, why wouldn't i just stay in the place and not pay rent (instead call up the condo association and pay the monthly maintanence so they keep the electricity on?)
As you said, the owner still owns it, that's why. your rights go out the window when the foreclosure happens (if it does)
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Response by MatWith1T
over 16 years ago
Posts: 66
Member since: Mar 2009
You have no rights in case of a foreclosure - you still have a legal obligation to pay rent... and if they foreclose, the bank becomes entitled to your debt, and they most certainly will come after it, and probably in far more credit-damaging ways then your landlord.
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Response by 30yrs_RE_20_in_REO
over 16 years ago
Posts: 9877
Member since: Mar 2009
A lot of Coops and Condo's insist on a rider being included in any sublease/lease that says that if for any reason the owner does not pay their mtc/CC's, the Coop/Condo has the right to make a demand to the tenant to pay them and deduct them from their rent (and since both the owner an tenant sign it, the owenr has no cause for evistion if the tenant complies with such a request).
"You have no rights in case of a foreclosure - you still have a legal obligation to pay rent"
Not really: upon foreclosure, the lease becomes void since the "owner" isn't the owner anymore. If the lease is void, then ALL obligations under it disappear - on both sides.
"I'm not 100% clear on how coop foreclosures work"
It's a UCC sale of personal property: the bank sends a notice and publishes the sale 3 times and then holds it (there's a little more to it in terms of notices, but that's pretty close to it): can be done in about 3 weeks.
"if i have no rights, why wouldn't i just stay in the place and not pay rent (instead call up the condo association and pay the monthly maintanence so they keep the electricity on?)"
Lots of people do just that. Except the Condo can't take a payment from you because they have no relationship with you (unless you've signed a rider like i mention above). But aside from that: a) The Condo provides your electricity? b) if anyone turned the lights out on a tenant who they knew were still occupying a unit, they would get eviscerated in L&T.
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If they manage a short sale, then the buyer assumes the property's liabilities and obligations, such as leases. But it is up to the new owner whether to renew.
If he/she forecloses - You have zero rights, basically. Sorry. But as you said, foreclosure takes forever - and after they finish that, then they have to go through the 4-6 months to evict you... even if you have no intent to stay. It will drag out long enough that the bank probably won't even bother (but they certainly will not renew your lease)
(and while its not the nicest of things, yeah, I would just skip that last months rent and let them keep the security deposit.)
"foreclosure takes forever"
Not if it's a Coop!
OOPS!!!! missed the "condo unit" part. (but the point that Coops take almost no time to foreclose on is still valid).
I'm not 100% clear on how coop foreclosures work... I just imagine there's some lever the board pulls that catapults delinquents out and then they close the drawbridge and sic knights on the bank to keep them at bay.
if i have no rights, why wouldn't i just stay in the place and not pay rent (instead call up the condo association and pay the monthly maintanence so they keep the electricity on?)
As you said, the owner still owns it, that's why. your rights go out the window when the foreclosure happens (if it does)
You have no rights in case of a foreclosure - you still have a legal obligation to pay rent... and if they foreclose, the bank becomes entitled to your debt, and they most certainly will come after it, and probably in far more credit-damaging ways then your landlord.
A lot of Coops and Condo's insist on a rider being included in any sublease/lease that says that if for any reason the owner does not pay their mtc/CC's, the Coop/Condo has the right to make a demand to the tenant to pay them and deduct them from their rent (and since both the owner an tenant sign it, the owenr has no cause for evistion if the tenant complies with such a request).
"You have no rights in case of a foreclosure - you still have a legal obligation to pay rent"
Not really: upon foreclosure, the lease becomes void since the "owner" isn't the owner anymore. If the lease is void, then ALL obligations under it disappear - on both sides.
"I'm not 100% clear on how coop foreclosures work"
It's a UCC sale of personal property: the bank sends a notice and publishes the sale 3 times and then holds it (there's a little more to it in terms of notices, but that's pretty close to it): can be done in about 3 weeks.
"if i have no rights, why wouldn't i just stay in the place and not pay rent (instead call up the condo association and pay the monthly maintanence so they keep the electricity on?)"
Lots of people do just that. Except the Condo can't take a payment from you because they have no relationship with you (unless you've signed a rider like i mention above). But aside from that: a) The Condo provides your electricity? b) if anyone turned the lights out on a tenant who they knew were still occupying a unit, they would get eviscerated in L&T.