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My landlord is in foreclosure! What do I do?
Kathleen Harward
Issue date: 2/4/08 Section: Opinion
The whole nation is suffering a foreclosure epidemic. How will you know if your landlord is next?
It would be nice if your landlord gave you a heads up. More likely, you'll find out when you receive a pile of papers from the Public Trustee's Office or the court.
Don't panic. You won't be kicked out overnight.
Don't celebrate, either. You don't get to stop paying rent, and it doesn't give you an excuse to suddenly move out.
The stress-free way to survive your landlord's foreclosure is to understand the legal timeframe of foreclosure.
A new law went into effect Jan. 1 that changes the timeframe. If you're in the middle of a foreclosure that began before Jan. 1, come see Student Legal Services and we'll explain the old rules.
Foreclosure is a process put into motion by a lender when a borrower has stopped paying on a loan. The lender starts the process by sending a "notice to foreclose" to the Larimer County Public Trustee's Office, which sets a sale of the property 110-125 days later. During this "cure" period, an owner can try to work something out with the lender, refinance, or even try to sell the property himself.
If no cure occurs, the property will be sold at a public auction. At the conclusion of the sale, the owner's rights to the property end.
The paperwork you receive from the Public Trustee and the courts will state that you may have certain rights in the process. It will tell you of an upcoming hearing at which the court will authorize the sale date.
You do not have to appear at the court date. While you do have a right to respond to the court's paperwork, it is rare for a tenant to have a legal justification for stopping the foreclosure. That's because a tenant's rights under a lease are almost always inferior to the rights of the lender. In addition, a buyer at the foreclosure sale does not have to honor your lease.
What is important to you is the sale date. You can find out who the new owner is by going to the Public Trustee's office after the sale.
It would be nice if your landlord gave you a heads up. More likely, you'll find out when you receive a pile of papers from the Public Trustee's Office or the court.
Don't panic. You won't be kicked out overnight.
Don't celebrate, either. You don't get to stop paying rent, and it doesn't give you an excuse to suddenly move out.
The stress-free way to survive your landlord's foreclosure is to understand the legal timeframe of foreclosure.
A new law went into effect Jan. 1 that changes the timeframe. If you're in the middle of a foreclosure that began before Jan. 1, come see Student Legal Services and we'll explain the old rules.
Foreclosure is a process put into motion by a lender when a borrower has stopped paying on a loan. The lender starts the process by sending a "notice to foreclose" to the Larimer County Public Trustee's Office, which sets a sale of the property 110-125 days later. During this "cure" period, an owner can try to work something out with the lender, refinance, or even try to sell the property himself.
If no cure occurs, the property will be sold at a public auction. At the conclusion of the sale, the owner's rights to the property end.
The paperwork you receive from the Public Trustee and the courts will state that you may have certain rights in the process. It will tell you of an upcoming hearing at which the court will authorize the sale date.
You do not have to appear at the court date. While you do have a right to respond to the court's paperwork, it is rare for a tenant to have a legal justification for stopping the foreclosure. That's because a tenant's rights under a lease are almost always inferior to the rights of the lender. In addition, a buyer at the foreclosure sale does not have to honor your lease.
What is important to you is the sale date. You can find out who the new owner is by going to the Public Trustee's office after the sale.
Viewing Comments 1 - 1 of 1
Tabetha
posted 5/16/09 @ 6:57 PM MST
If you are in foreclosure and need to know what to do just say out loud now Jesus I believe and I receive you in my heart please help you can also go to this website for prayer leroyjenkins. (Continued…)
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