How to Protect Yourself if your Landlord goes into Foreclosure
- 1). Continue paying your rent on time every month. Your agreement is with the landlord and not the bank. If you hear rumors that the landlord is going into foreclosure, you must continue to pay rent until you get a notice from the bank that the landlord no longer owns the property.
- 2). Contact the lender or the attorney to find out what your options are if you receive an eviction notice, on which you'll find the names of both the lender and its attorney. If you prefer not to negotiate directly with the lender, contact a nonprofit housing agency (see Resources). The lender's name or its lawyer will be on the eviction notice. Contact either one to let them know you're in the property. Find out what your options are. Will the lender let you sign a new lease or is the bank offering some cash assistance for moving out?
- 3). Deposit your rent into a separate bank account if you cannot locate your landlord or if it refuses to take money any longer -- for example, in California, it is against the law for a landlord to receive rent when in foreclosure. You may receive a notice from the bank asking for rent for past months, and if you do not have it, they will give you a 30-day notice.
- 4). Call the water company and electric company if your landlord was paying the bill, to see if you can find out if the bill is delinquent. Tell the utility company that your landlord lost the property in foreclosure. Utility companies often won't shut off utilities if you tell them that you are in a foreclosed building.
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