Foreclosed Home with Renter being kicked out

**Taxpayer7** · July-13-10, 07:38 PM

My neighbor informed me today that she and her daughter has to move within one week of finding out that the previous owner foreclosed on the home 4 months ago, and did not tell her that the home was in foreclosure. The previous owner has collected rent from her for the past 9 months and never revealed to her that he was not paying the mortagage to the bank, nor the electric bill [[which was included in the rent payment of $1000+ per month). The electricity has been shut off on three different occassions because of this. She's really tried to keep the property up, keeping the grass cut and maintaining the outside and inside of the property. I think this is such an awful position to put a single mother and child in. Do any of you know of anyone who has experienced this? If so, what are her options? It is my understanding that the owner was a friend of the family, and there was no lease signed for the rental of the property. It just seems awfully unfair to have people move into properties that are being foreclosed on, and not give them any clue that they are paying rent and will likely have to move from the property within months of moving in. We live in one of the few nice areas left in the city, and I would much rather have the home occupied by people maintaining the property, rather than leaving the property empty. These are very tough and trying times we live in today.

**n7hn** · July-13-10, 07:51 PM

In California the bank has to pay renters to leave. DOnt know if its in michigan but worth looking in to. Cali its $5000 a single person and $10,000 to a family. Good luck to her. Too bad your loosing a neighbor who cares.

LodgeDodger · July-13-10, 07:55 PM

This is a common occurrence. There were a number of articles about this in The FREEP.

**dawn26** · July-13-10, 07:58 PM

this happened to me down in toledo last january. i had 2 weeks to find somewhere for myself and my 3 kids to go. i was paid $750 to move. thank god it was tax return time

**iheartthed** · July-13-10, 08:09 PM

Buried in a housing law signed this week by President Barack Obama are protections that will help thousands of renters stay in their homes — at least for awhile — after their landlord has been foreclosed on.

The law allows tenants to remain in their foreclosed rentals through the end of their lease and then 90 days after that before being forced to vacate by the lender. Renters without leases will have 90 days, a significant improvement over what most received before: almost no notice at all.

http://www.msnbc.msn.com/id/30891380/

If she doesn't have a lease, I'm pretty sure the 90 day period starts from the day that the lender informs her that the house is in foreclosure.

**sumas** · July-13-10, 08:13 PM

There are a few legal aid services around and they tend to assist with rental and eviction problems particuliarly for single women with children.

**CLAUDE G** · July-13-10, 08:15 PM

Without a lease they might not have any options, if they had a lease they might have some pull with the bank.

There has to be something you could do, especially with kids involved.

Not saying this is the right thing to do, but if I was the owner I might consider back dating a lease to the tenants to prevent them from having to move on such short notice.

I know a friend of mine today called me and said he signed a 1 year lease on a condo in Downtown Chicago back in May. The owners sent him a registered letter saying that he had to be out by October. He called the owner today and told him if he wanted him out early he would have to buy out the remaining portion of the lease.

**Jimaz** · July-13-10, 08:40 PM

I vaguely recall reading of this problem becoming more common. I think there was some mention of legislation in the works to deal with it. It's definitely not an unknown problem. The consensus was that this is definitely unfair since the renters typically had paid their rent faithfully.

Quick Google:

Here's a good local story: Foreclosure rights often unknown to Michigan renters

**Taxpayer7** · July-13-10, 09:10 PM

Thanks to all for the wonderful feedback. I'm going to give her this information so she can follow-up on some of the information shared. This forum is absolutely wonderful and I really appreciate each and every one of you. Thanks again and God Bless!

**Jimaz** · July-13-10, 09:15 PM

Hey it's only the right thing to do. This shouldn't happen to any of us.

**Taxpayer7** · July-13-10, 09:50 PM

Amen to that Jimaz, Amen to that. Thanks!

**wolverine** · July-13-10, 11:07 PM

I lived in a foreclosed rental in Ann Arbor. A Washtenaw Co law prevented us from being evicted, but we were never asked to leave by the bank. The house had a management company and the bank continued to use their services to maintain the property. However, our lease with the owner was still valid. We still had to pay despite the house becoming bank owned. Apparently the New York couple that owned it was hundreds of thousands in debt.

**Danny** · July-14-10, 08:25 AM

Caveat Emptor

**EastsideAl** · July-14-10, 11:06 AM

They should find out from the owner precisely who is taking the house and contact them directly [[or find out via public record, which is a little more difficult). And maybe have a tenants organization or legal aid contact them on their behalf as well. Often the bank or their servicing company is unaware that the house has been rented out and may be happy to continue with good, non-destructive, and consistently rent paying, tenants. After all, the property is otherwise most likely going to sit empty, not earning any income, and potentially be vandalized or stripped, particularly in the current dead real estate market. I've known people who have made such arrangements and have been allowed to stay on. It's certainly at least worth a try when you've got nothing more to lose.

**jbd441** · July-14-10, 11:42 AM

Originally Posted by EastsideAl

They should find out from the owner precisely who is taking the house and contact them directly [[or find out via public record, which is a little more difficult). And maybe have a tenants organization or legal aid contact them on their behalf as well. Often the bank or their servicing company is unaware that the house has been rented out and may be happy to continue with good, non-destructive, and consistently rent paying, tenants. After all, the property is otherwise most likely going to sit empty, not earning any income, and potentially be vandalized or stripped, particularly in the current dead real estate market. I've known people who have made such arrangements and have been allowed to stay on. It's certainly at least worth a try when you've got nothing more to lose.

I agree. Because this is such a common occurence, it would be worth it to see if the bank would allow the tenant to stay. I have seen in the past where a property was foreclosed on and a 30 day eviction was sent to the owner. The tenants had no knowledge until the sheriff showed up and forced them to move within an hour or two. No prior notice given.

**DMK** · July-14-10, 11:51 AM

Contact these folks at once!

United Community Housing Coalition
220 Bagley Suite 224
Detroit, MI 48226
Ph: 313.963.3310

**professorscott** · July-14-10, 10:29 PM

The Federal law requires 90 days notice if there is no lease. So if the only correspondence has been something telling the tenant to move out in a week, that notice has no legal validity whatsoever, and the new bank/owner has not given any legally valid notice. So the tenant has got the right to stay as long as they want, until they get a legally valid notice giving them 90 days - and then they have 90 days from that point forward.

Definitely, I agree with others, get some help and enforce your rights!