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 ...

Consult Your Own Personal Lawyer Now!
Reply  POST NEW QUESTION

 

Thread Tools Search this Thread Rating: Thread Rating: 1 votes, 1.00 average. Display Modes
Old Jun 15th, 2009, 06:13 AM   #1
noone123
Guest
 

noone123's Avatar
 
Posts: n/a

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?
  Reply With Quote
Sponsored Links
Forming an off-shore company? We can assist you in forming your company in 40 countries worldwide.
Old Jun 15th, 2009, 06:14 AM   #2
noone123
Guest
 

noone123's Avatar
 
Posts: n/a

Default Re: Can I collect rent while my house is in default?

I am in California
  Reply With Quote

Did you find this post helpful? Yes | No
Old Jun 16th, 2009, 12:36 PM   #3
Top Level Member
Country:  
sunlover's Flag is: United States
 

sunlover's Avatar
 
Join Date: Dec 2008
Location: USA
Posts: 2,107

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
sunlover is offline   Reply With Quote

Did you find this post helpful? Yes | No
Old Jun 16th, 2009, 05:52 PM   #4
Unregistered
Guest
 

Unregistered's Avatar
 
Posts: n/a

Default Re: Can I collect rent while my house is in default?

Quote:
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!
  Reply With Quote

Did you find this post helpful? Yes | No
Old Jul 18th, 2009, 01:49 AM   #5
Unregistered
Guest
 

Unregistered's Avatar
 
Posts: n/a

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!
  Reply With Quote

Did you find this post helpful? Yes | No
Old Jul 18th, 2009, 09:22 AM   #6
Top Level Member
Country:  
sunlover's Flag is: United States
 

sunlover's Avatar
 
Join Date: Dec 2008
Location: USA
Posts: 2,107

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.
sunlover is offline   Reply With Quote

Did you find this post helpful? Yes | No
Old Jul 30th, 2009, 02:20 PM   #7
Unregistered
Guest
 

Unregistered's Avatar
 
Posts: n/a

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.
  Reply With Quote

Did you find this post helpful? Yes | No
Old Sep 6th, 2009, 05:55 PM   #8
diversebg
Guest
 

diversebg's Avatar
 
Posts: n/a

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.
  Reply With Quote

Did you find this post helpful? Yes | No
Old Dec 30th, 2009, 07:57 PM   #9
Unregistered
Guest
 

Unregistered's Avatar
 
Posts: n/a

Default Re: Can I collect rent while my house is in default?

Well the Rent Skimming Law works only on the fact that the person purchased the home within a 1 Year time frame, so this probably rules out most people but I would write a letter to the Landlord letting them know you know the home is in the foreclosure process and that you have NOT BEEN NOTIFIED IN GOOD FAITH by the Landlord that the home is in foreclosure so could make reasonable moving arrangements that take time and money and he/she has failed to give you sufficient notice of the pending foreclosure that opens up the potential for you and your family to experience DAMAGES (stress of moving, son/daughter missing school, having to enroll them into a new school, unexpected moving expenses, higher rent, etc.). Then I would demand that the landlord provide WRITTEN PROOF that they are trying to save the home (which they most likely are not since they are scumbags that never were honest with you in good faith notifying you that the home is going into foreclosure) and if they in fact trying to save the home then sure they are entitled to the rent and if not, I would like to see them try to win an eviction case in court for a home that they are going to lose anyways and could get sued by the bank for keeping the rents they have been pocketing so far! No scumbag is going to open that can of worms once they know that you're not a push over and will fight it in court to the end!
  Reply With Quote

Did you find this post helpful? Yes | No
Old Feb 20th, 2010, 08:59 PM   #10
Unregistered
Guest
 

Unregistered's Avatar
 
Posts: n/a

Default Re: Can I collect rent while my house is in default?

I'm in the same situation, landlord is in default. He failed to tell us he was doing this. He said that he had to go into default to get the new loan mod that the president signed last year. My cousin is in real estate and said that it is against the law to collect rent while in default. We discovered this default because he has been getting all his real estate mail sent to our address, making it look like he still lives here. He even asked if he could get the utilities put in his name. He claims to be fixing the problem but we don't believe him, so we are holding back the rent to save to move out. (We live in CA)
We just got 12 envelopes of mail today from his lender for him, I'm tired of getting his mail.
  Reply With Quote

Did you find this post helpful? Yes | No
Reply

Bookmark & Share

Tags
None

This thread has 63 replies and has been viewed 89916 times

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes Rate This Thread
Rate This Thread:


Posting Rules
You may not post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Format Your Messages
Add Forum to Google Toolbar
Forum Jump

Similar Threads

Thread Thread Starter Forum Replies Last Post
Can I collect rent on my aunts behalf? ksjlychkova Landlord vs Tenant Issues 11 Mar 27th, 2012 10:51 AM
Can my landlord collect rent if the house been flag as illegal unit? sh12620 Landlord vs Tenant Issues 3 Dec 16th, 2011 06:14 AM
Rental Co. trying to collect rent when I have no access to apartment Unregistered Landlord vs Tenant Issues 7 Apr 22nd, 2010 06:47 AM
Do I still have to pay rent to my LL who is in default? Unregistered Mortgages, Refinancing, Foreclosure 2 Jul 30th, 2009 02:24 PM
FLORIDA-HOW TO COLLECT RENT AFTER THE EVICTION Unregistered Landlord vs Tenant Issues 3 Dec 3rd, 2007 04:32 PM


Forming an off-shore company? We can assist you in forming your company in 40 countries worldwide.


All times are GMT -5. The time now is 11:22 PM.