If my landlord is suing me for rent but the property is in foreclosure, am I still obligated to pay?
Question Details:
They were pocketing my rent money instead of paying their mortgage.
Even though there is a foreclosure in process, as long as your landlord remains the owner of record (i.e. on the deed) you must pay your rent. If you don't you could in fact be evicted which is why your landlord is suing you.
As a tenant of a property in foreclosure, you should be notified by the mortgage lender as to the sale/transfer date of the property. You will then be informed where to send your rental payments by the new owner. However, your landlord is responsible for the return of your security deposit, not the new owner.
Additionally, you should be aware that under the law, a tenant in good standing is given protection if the event of a foreclosure. Tenants who have a written lease can continue to occupy the home until the end of the lease period, or 90 days, whichever is longer. The only exception would be if the new owner intends to move in and occupy the home as their primary residence. In that case, a 90 day notice to move would apply.
