Can I collect rent while my house is in default?

This is a discussion on Can I collect rent while my house is in default? within the Mortgages, Refinancing, Foreclosure forum, part of the Buying & Selling Property category; I am in default on a home I think Im going to just let foreclose. Can I collect rent, and ...

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Old Jun 15th, 2009, 06:13 AM   #1
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Default Can I collect rent while my house is in default?

I am in default on a home I think Im going to just let foreclose. Can I collect rent, and pocket it, while I am in the foreclosure process?
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Old Jun 15th, 2009, 06:14 AM   #2
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Default Re: Can I collect rent while my house is in default?

I am in California
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Old Jun 16th, 2009, 12:36 PM   #3
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Default Re: Can I collect rent while my house is in default?

Long as you are still the "legal" owner you may still collect rent
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Old Jun 16th, 2009, 05:52 PM   #4
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Default Re: Can I collect rent while my house is in default?

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Originally Posted by noone123 View Post
I am in default on a home I think Im going to just let foreclose. Can I collect rent, and pocket it, while I am in the foreclosure process?
the only way you can collect rent is if you are stillhte legal owner and not in foreclosure status!
if you collect rent on a foreclosure you can be sued for damages by the family who lives there!
when you g o into foreclosure you must let yo7ur residents know that so htat they may prepare to move and not waste time..im sure they have a life that does not rule around yours!
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Old Jul 18th, 2009, 01:49 AM   #5
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Thumbs Down Re: Can I collect rent while my house is in default?

I am a tenant who lives in a condo that is headed towards foreclosure...I think it is horrible that my landlord is still collecting rent from me when they are not even making payments on the condo. Why should they get to pocket my rent payments when I will just get evicted in the end?

So my question is...what is considered foreclosure status? Can I do anything? A letter arrived stating that the house was in default, and if payments were not made, then the bank would foreclose on the house. Do I still have to continue to pay my landlord rent when they have not paid their mortgage payments over the past year? The letter stated that they had not paid over $18,000 in mortgage payments.

Please help!
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Old Jul 18th, 2009, 09:22 AM   #6
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Default Re: Can I collect rent while my house is in default?

The payment status of the owner does not remove your need to pay rent.
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Old Jul 30th, 2009, 02:20 PM   #7
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Default Re: Can I collect rent while my house is in default?

If you are going to continue to collect rent, why not use the money to pay the bank what you owe instead of letting it go to foreclosure?

Are you aware of the repercussions of having a foreclosure? Why would anyone simply "let" their property go to foreclosure?

In addition, many states require a landlord to have a Certificate of Occupancy. If you do not have this, you are renting illegally and cannot enforce payment from your tenant. You especially cannot keep the tenant's security deposit.

To July 18th's question: How did you come to be in possession of your landlord's mail? Surely a foreclosure notice does not go to the tenants. It goes to the mortgagee.

Again, if your landlord is legal, and can, in fact, rent out to tenants, his foreclosure status has nothing to do with your agreement to pay your rent on time. One does not cancel out the other.
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Old Sep 6th, 2009, 05:55 PM   #8
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Default Re: Can I collect rent while my house is in default?

In the State of California, a landlord who collects any amount of rent from a tenant with the intention of not paying their mortgage obligation to a lender first, is in violation of the civil code that listed below... it is defined as skimming! Your Landlord may go to jail for intentionally defrauding his mortgage lender.

California Civil Code 890. (a) (1) "Rent skimming" means using revenue received from the
rental of a parcel of residential real property at any time during
the first year period after acquiring that property without first
applying the revenue or an equivalent amount to the payments due on
all mortgages and deeds of trust encumbering that property.

This does not clarify the tenants rights regarding paying rent under these circumstances. i would think the landlord has the right to collect, but, if he is intentionally defrauding his lender in the process... you would need to ask a lawyer.
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