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?

I am in California

[sunlover]

Long as you are still the "legal" owner you may still collect rent

Originally Posted by noone123 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!

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!

[sunlover]

The payment status of the owner does not remove your need to pay rent.

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.

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.

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!

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.