Foreclosure!? What do we do now?

[2Curious]

What is the name of your state (only U.S. law)? HI

Received an email from our landlord that the house we live in is going into foreclosure and to continue paying the same rent and eventually when everything transpired we'd receive notice from the bank and would give us 45 days to get out. Doesn't really sound right and what about our deposit. Any advice on this situation would be appreciated.

 

[DeenaCA]

You're most likely entitled to a minimum of 90 days advance notice to vacate, under the federal Protecting Tenants at Foreclosure Act. For more information, see http://www.nlihc.org/template/page.cfm?id=227. You do need to continue paying rent, or you can be evicted for nonpayment.

Keep in mind that a foreclosure can take a long time. There's nothing you need to do right now.

and what about our deposit.

Some states have laws governing return of the security deposit after foreclosure, but I don't see that Hawaii is one of them.

 

[2Curious]

So the property hasn't officially entered the foreslosure process yet and we are on a month to month right now. He's saying that after foreclosure the bank would become the new landlord. I've never heard of a bank foreclosing on a house and then renting it out. It doesn't make sense. So if we tell them we're leaving now before the process begins then we should be entitled to our deposit right? Since he has been apparently pocketing the rent we've paid for awhile and would like to continue to do so it makes sense for us to renegotiate our rental agreement and see if we can't get our rent cut in half. Since he's not paying his mortgage anyway I'm sure he'd like to have some money as opposed to none. We'd have to be prepared to leave if he called our bluff though. Thoughts?

 

[Who's Liable?]

So the property hasn't officially entered the foreslosure process yet and we are on a month to month right now. He's saying that after foreclosure the bank would become the new landlord. I've never heard of a bank foreclosing on a house and then renting it out. It doesn't make sense.

Makes perfect sense. The bank is still getting money for their property. This has been going on for awhile now.

So if we tell them we're leaving now before the process begins then we should be entitled to our deposit right? ?

Only after you have given proper notice to vacate and request your deposit per your state's LL/T laws.

Since he has been apparently pocketing the rent we've paid for awhile and would like to continue to do so it makes sense for us to renegotiate our rental agreement and see if we can't get our rent cut in half.?

Won't happen. As long as you're still a renter, you are still required to pay the amount agreed upon. You can certainly try to renegotiate, but I highly doubt your LL will agree.

Since he's not paying his mortgage anyway I'm sure he'd like to have some money as opposed to none. We'd have to be prepared to leave if he called our bluff though. Thoughts?

Than start preparing!

As long as the LL is still in posession of the property, you and your LL MUST abide by the terms of your lease and by your state's LL/T laws. This also includes retrieving your security deposit.