Should we continue to pay rent if our landlord is in default of their mortgage?

Our landlord property is scheduled to go to auction in about 12 days. We just received a call from a realtor stating they are putting the home on the market. Does this stop the auction from taken place? We have never been late on our rent for 4 years and the landlord is not willing to work with us on at least allowing us to pay half of the rent so we can move out since they are not paying the mortgage. What right do we have because they are holding a $2700 deposit?

Asked on December 7, 2011 under Real Estate Law, California

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

If you are under a lease with your landlord for the rental that you have, you are under contract to continue making payments to your landlord so long as he is the owner of record for the property even though he is in default on the mortgage absent court order served upon you to the contrary.

Just because the home is listed for sale, the listing does not stop its auction.

You need to be aware that in 2010 there is a new federal law for renters of residential property that is in foreclosure. If the lease is a month-to-moth, the tenants must be given at least 90 days notice to move out by the new owner who forecloses on the property. If the lease is a term, the new owner must honor the term of the lease. I suggest that you consult with a landlord tenant attorney about your situation.


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