Deadbeat Landlords
I found out last Saturday that my landlord has been cashing my rent checks, but not paying the bank: I received a fancy Notice of Default on my door. Not a surprise at all, btw, as my landlord has been subsidizing my residence to the tune of $1200 a month (mortgage - rent), and he works in construction.
I called my landlord, who now says he has been trying a short sale. My landlord is ~24 and owns 5+ houses, most of which are apparently in default. I then called our friends at IndyMac who made this winner loan. IndyMac indicated that the entire process would likely take 4-5 months, buying me some time. Funny detail was that the IndyMac guy spoke to me as if he handles these calls all the time. Good news for me, as I'd hate to be pushed into buying too early. My wife is tired of renting at this point (renting since 2005, when we moved here), plus we have two young kids.....
I'd be interested to learn if there are any others in the same situation.
I called my landlord, who now says he has been trying a short sale. My landlord is ~24 and owns 5+ houses, most of which are apparently in default. I then called our friends at IndyMac who made this winner loan. IndyMac indicated that the entire process would likely take 4-5 months, buying me some time. Funny detail was that the IndyMac guy spoke to me as if he handles these calls all the time. Good news for me, as I'd hate to be pushed into buying too early. My wife is tired of renting at this point (renting since 2005, when we moved here), plus we have two young kids.....
I'd be interested to learn if there are any others in the same situation.
Comments
Whoa. As long as said deadbeat "owner" hasn't been foreclosed upon, I would think he can still kick you out if you don't pay rent. Once the bank owns it, who knows - but I suspect they will want it vacant.
Yeah take Tejas, advice. Landlord can still come after you for rent unpaid in court.
It sucks when it happens as you gotta move out and it is a big pain. Live deejayohsaid, do NOT stop paying rent. Although they aren't paying the mortgage, they can still evict you if you stop paying (since they still own it). Once it goes to auction, you will have 20days from the auction date to move out. I hope you are month to month or are coming up on the end of the lease. Remember you rights with them trying to sell the house as well as having them wanting to show the place is a pain, especially when they are required to give you notice (in seattle it is 2days I believe) before entering but will sometimes want to know if they can squeeze in an appointment the next day or schedule a bunch on the weekend.
Hopefully you can find a new place which is better and cheaper to rent. I was a little unlucky as there wasn't a ton of places for rent in the area/price range I was looking for back in Jan/Feb.
The timeline at my place was
Jan 6th Notice of Default
Feb 6th Notice of Trustee Sale
May 8 or 18th is the Auction date
I'll keep you posted of our further adventures
Reading this:
I can't help but wondering if these situations are being flagged for fraud investigation. Just unbelievable.
Regardless of what you do, get everything in writing.