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I just found a mortgage default notice taped to my door addressed to my landlord. Now what do I do?

How freaked out should I be? The notice says that a foreclosure sale can't be held any sooner than 90 days from when a notice of sale is issued, and a notice of sale can't be issued until 30 days after the notice was posted. Our lease is up at the end of May but we love it here and had planned to stay for at least another year. I know that all three tenants in the building have been paying our rent on time, should I start saving those rent payments towards a deposit on a new place? Do we have any legal recourse?

Jessica asked in Other - Finance & Legal about 1 year ago | Report

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4 Answers

  • 0prr6_small
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    Your lease is good, no matter who owns the property. Likewise, you are still obligated to pay the rent. Your chances of getting a new lease from new owners is a definite unknown and you should be prepared to move, just in case.

    Kip Waddle answered in Other - Finance & Legal about 1 year ago | Report
    1 comment by capicola…
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  • Min-wage_small
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    asteria

    You actually have a lot of protections as a renter in Seattle, but I had some friends whose landlord was going through foreclosure and it really sucked for them. You might want to look at moving after your lease is up, but definitely keep paying your rent.

    This website has good advice for your situation: WashingtonLawHelp.org. Also save the City of Seattle's Information for Tenants flyer - it will come in handy if you need to deal with a new (shitty) landlord.

    Getting an extension on your lease will allow you to stay in the property no matter what, but even a month-to-month tenant has a lot of rights in Seattle. So going month-to-month will give you more flexibility to leave if/when shit goes bad, such as:

    -Your landlord is so broke they spent your deposit money. You could get it back, but you'd have to go to small claims court and it's a big pain in the ass; plus it's really hard to get someone who doesn't have money to pay, even if they are legally ordered to.

    -Your landlord is so broke they don't pay the utilities, which will eventually get shut off. In that case you would call the Dept of Planning, and they would contact your landlord, but if the landlord doesn't restore the utilities they will make you move out. (Obviously doesn't apply if tenants pay all utilities.)

    Hopefully that won't happen; you should also talk to your neighbors and hopefully all of you can work together to make the best of this situation. But whatever happens try to save as much as you can over the next few months, because you can't count on getting your deposit back in a timely manner when you move.

    Also if you stay past the foreclosure and your new landlord tries to pull shit like raising your rent or kicking you out, don't hesitate to contact the Dept of Planning at 206.615.0808. They were very helpful when my apt building was sold last fall and the new owner tried to raise my rent without giving notice. They are very busy and tend to take a few days to respond, though.

    asteria answered in Other - Finance & Legal about 1 year ago | Report
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  • Cappa_small
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    capicola

    First thing I would do is photocopy or scan that notice for your records, and then mail it to your landlord via Registered Mail, Return Receipt requested. You can fax or email them a copy but make sure you C.Y.A. and leave a record of passing the notice along promptly. If you like, you can include a letter asking what their deal is, and whether or not they will be in a position to renew your lease.

    Start keeping a written record (journal log entries, photocopies, whatever) each time you communicate with your landlord in case things turn ugly, e.g. they stop fixing things, paying for utilities, or you never get your security deposit back, etc.

    Note that the _absolute earliest_ a foreclosure sale could take place is 120 days hence, and most banks have no interest in reacquiring any more properties and locking in a huge loss, much less getting into the property management business. So it's possible your building could linger in limbo indefinitely with a d-bag landlord who is happy to collect your checks while paying no bills.

    Sorry! Good luck. If it were me I would take control of the situation by looking for a new place. The economy's in shambles and there should be plenty of nice rentals out there by springtime.

    capicola answered in Other - Finance & Legal about 1 year ago | Report
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  • Qlandav2ex_small
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    Your best information comes from the paper that you quoted as to the timeline on which things can occur. Having said that you have a lease that needs to be honored, it is a contract you signed and so you must make your payments as you agreed to when signing it. You may be able to continue your lease on a month to month basis or even sign another (but you should prepare for the eventuality of moving as this plays out).

    The time which a lease would have to be honored after the property changes hands in a foreclosure is something you need to contact an authority about.

    The Tenants Union has halted operation of their hotline and walk-in services as of February 14th (temporarily) but they have listed other sources of assistance on this notice. 

    Russ Campbell, NWEBS answered in Other - Finance & Legal about 1 year ago | Report
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