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Extreme Veteran
Posts: 503
| Long story short, we went through Renters Warehouse and found a guy to rent a house from. Our landlord just informed us that his ex wife wants to get off their mortgage and that would force him to refinance. He doesn't think he will get approved for refinancing which, as I understand it, would force him to sell or get foreclosed on. As a tenant, does anyone know what our rights are? I believe I read that Obama passed an act in 2009 that says if the place is foreclosed on, our lease is still into effect until the end date. But does that mean we still pay rent? Or just utilities? Also, what happens if he sells?
I am in Wisconsin and can answer any questions to the best of my knowledge. I know there are a couple lawyers on here and hope they jump on to answer. Going to get some local legal advice tomorrow but wanted experiences or input from here as well. | |
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  Fact Checker
Posts: 16575
  
Location: Displaced Iowegian | This might help you..........
Wis. Stat. § 704.35: Residential Rental Property in Foreclosure
The landlord must notify any prospective tenant in writing if a foreclosure action has commenced and, if judgment has been entered, the date on which the redemption period ends. The redemption period generally will be three to six months for residential rental properties unless the property is a one- to four-family property that is owner-occupied; then the redemption period may be 12 months. Any rental agreement entered into must include a separate written statement signed by the tenant indicating that the tenant has received this notice. Any rental agreement without the signed statement is voidable at the option of the tenant. This law applies if the foreclosure action was commenced on or after March 6, 2009.
Wis. Stat. § 846.35: Protection for Tenants in Foreclosure Actions
If a foreclosure action is commenced against a residential rental property, the foreclosing party (typically a lender) must notify the tenants of the following: - That a foreclosure action has been filed. This notice must be given no later than five days after the foreclosure action is filed.
- That the lender has been granted a foreclosure judgment and the date when the redemption period ends. This notice must be given no later than five days after the foreclosure judgment is filed with the clerk of court.
- The date and time of the judicial confirmation hearing, once it has been scheduled.
These notices may be given by personal service or by certified mail with return receipt requested. The notice is considered given when mailed unless the mail is returned unopened.
If the lender/foreclosing party fails to provide any of these notices, the court will award the tenant $250 plus reasonable attorney fees. A tenant, however, may not recover under this provision more than once.
If the landlord’s property is foreclosed upon and sold at sheriff’s sale: - The tenant may remain in the rental unit for up to two months after the end of the month in which the sheriff’s sale is confirmed. The tenant must pay rent at the same rate that applied immediately before judicial confirmation of the sheriff’s sale.
- The tenant may withhold rent in an amount equal to the security deposit during the last period the tenant remains in possession. The tenant’s right to possession expires at the end of the month for which the tenant withholds rent.
- No writ of assistance or writ of restitution may be executed against a tenant whose tenancy is terminated by foreclosure before the additional two months have passed unless the tenant waives this right in writing.
This portion of the new law applies to rental agreements entered into on or after March 6, 2009.
Wis. Stat. § 846.35(4): CCAP Reporting | |
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Extreme Veteran
Posts: 503
| Thanks NJJ! So it sounds like after the house has been foreclosed on (which who knows how long that could take) we have two months before we have to be out after the sale. Am I reading that correctly?
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 Forever Young
Posts: 6768
Location: relocated to Texas | Is the man divorced, or going through a divorce? An ex wife cannot force him to refinance. she signed the loan papers and the bank will hold her to that loan. The only way she gets off of it is if the house is sold and the debt paid, or if he refinances. If he cannot get a loan, then he cannot refinance so she stays on the loan. This should have been handled in their divorce. If it wasn't, she cannot force him to do it now. So, he is either not being honest with you (assuming his divorce is final) or, he doesn't know that she cannot force him to do that. Is it possible that he hasn't been making payments on the property, is about to be foreclosed on and wants to blame it on this? It takes several months for the bank to foreclose on a property. If that house is foreclosed on and it goes to sale, I would stop paying rent and look for another place to live. Have you checked the county records to see if he is current on Property tax? I would do that if I were you.
i just read what NJJ posted. Exactly what it says is why I said you should not pay rent. You would never get your deposit back otherwise.
Edited by Hollywood's Fan 2014-12-11 10:03 AM
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Any experiences with renting and foreclosures?