Foreclosure and your lease
Ok, so now you're in trouble and you've found out that you've 
been scammed or been told a lie by your landlord. You have a lease but didn't know the owner of your place is now in foreclosure. What do you do?
OR
You've signed a lease with a landlord and have found out they haven't been making a mortgage payment for 6 months - what do you do?
OR
You've signed a lease, moved in and found out that the person you thought was your landlord doesn't even own the building! This just happened this week in Chicago! What do you do?
OR
You've put up a substantial security deposit due to your less than enthusiastic credit rating and have found out the landlord always was in foreclosure and is not making mortgage payments! He's ran off with your deposit, your rent checks and can't be found! What do you do?
Don't ignore it! Call an attorney, tenants rights group or one of the pro-bono legal groups that I have linked to on this post!
Your lease is valid if it was signed prior to the foreclosure in Illinois. Don't let the lender bully you into thinking that you have to vacate the property right this second.
Please understand that this is a very complex issue and unfortunately you will have to seek out legal advice. Please be sure to gather your lease and all rent payments made and have them available when you talk with someone regarding your position.
© 2010 Lyn Sims
Lyn - Good advice for renters. With the foreclosure crisis continuing, the scenarios you describe will only become more common.
These are good suggestions for people unfortunate enough to fall victim to this and other scams. Thanks for the blog, Lyn.
Very good blog, Lynn. This is the latest rash of crime to hit the real estate arena. There were people posing as landlords in Florida and collecting money on rentals that weren't even theirs. Foreclosers are problem enough in our society without having predators take advantage of innocent people. Big question as to where this will take us? It will definitely take some legal rambling. Have a great week.
Eldon
very good post. some lenders will also work with renters. Every situation seems to be different
John: It's a sad story but more & more of this is happening. In Chicago, 3 ladies got scammed by this gentlemen that posed as the owner of the building.
Eldon: Soon you will have to investigate the owner to be sure he is who he says he is. How many people know how to do that?
True Real Estate: Thanks for the comment.