Consumption and Real Estate
should i negotiate a rent amount being that the property is in foreclosure?
Question : should i negotiate a rent amount being that the property is in foreclosure?
i’m renting a home thru a property management and the owners are in a process of foreclosure. They didn’t tell me that this was happening and now the management company is sending me a new lease to sign. They left the rent at the same price but they will not reduce the monthly. Is their something i can do?
foreclosure property management
Best answer:
Answer by shnicklefritz38
You can always renegotiate, if they won’t lower the rent, move out.
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#2 written by Big Deal Maker 1 year ago
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#3 written by foreclosurefish_com 1 year ago
I would always try and negotiate the best possible deal for your lease payment, regardless of any foreclosure situation. If they changed the terms of the lease to be less in your favor, then you have a clear reason to request a reduce payment or move out.
But, just because a property is in, or has gone through foreclosure, it doesn’t mean it’s a good reason for you to get a reduced payment. Many management companies raise their rent when a lease renews, so keeping it the same may actually be a benefit for you.
Are you happy with the new terms of the lease? Are you happy with the property and the price you are paying? If you are, then the foreclosure will have little to no effect on you. Even if the home sells during your lease, new laws require the new owner to honor the lease, unless they plan on moving into the home themselves. If this happens, you would have a 90 day notice.
If you don’t want to deal with not knowing exactly what’s going to happen in the future, or if you are looking for a more long term living arrangement, then you should just move out now and find a new home.
But there are a lot of foreclosure problems with rental properties and you might end up in an even worse situation with your next rental.
Good luck!
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#5 written by chatsplas 1 year ago
Tenants can always vote with their feet, or WALK.
At the end of foreclosure, your lease is voided. Up until then, you and LL are fully bound by the lease. Has your prior lease expired? You may wish to go on month to month or to move. Certainly you may ask for a rent reduction, but certainly they may refuse it, also. -
#6 written by Stephanie 1 year ago
I would contact your Local Tenants Rights Association. Do not sign the lease before consulting a professional. If the property is in foreclosure It is likely that the mortgage is not being paid and who knows where your rent is going. The bank will eventually take back the property and you will most likely be asked to leave. If I were you I would start saving my money to secure a new apt. or buy my own home. Good Luck!
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#7 written by bull_rooster_aardvark 1 year ago
You can negotiate the new lease like any lease so you can certainly ask for less rent, but there is a much bigger issue you’d better get worked out first.
Make sure the bank isn’t trying to get you to sign this new lease so that they can get rid of you sooner. There is probably some clause in the new lease which essentially says that this lease supercedes the old lease (ie the old lease in made null and void) and further there will be another clause that says that with this new lease the bank can now get rid of you for any reason it wants. Put another way, they may be trying to nullify the old lease so that they can just evict you immediately and the new lease is a ploy to do this. Note I’m not saying this is happening, but its possible, you’d better read the lease very carefully and see if this (getting rid of you before the lease term runs) is possible. You also need to find out for the area of the country where you are whether your old lease even remains in effect after a foreclosure – call our local county courthouse for this, they probably know the answer.
Best luck, and sorry to throw this monkey wrench into the whole process (especially when maybe the bank may be completely on the up and up – just be careful).
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Hi,
This is a response to Big Deal Maker….your so full of it your eyes must be brown. Now for the correct answer. If you have a signed lease (legal document) you must follow that to the letter or face the legal consequences. You are in no place to negotiate anything until the lease expires. Please Do Not follow any advice here unless you know for a fact that it is advice that follows all Landlord/Tenant laws of the state you live in. Anything else is just BS period. This is the best answer I see for this question so I suggest you know your state laws so you can do the correct thing. The only time you can negotiate your rent is prior to signing of a new lease.