If home heading toward foreclosure, can owner rent it to someone with a 2-year lease?

The only way to find out the answer to that question is to read the full text of that law. People who answer here won't even read your full question, and won't even know what law you're talking about.

For example, a typical answer might say something like "A tenant can stay up to 90 days after the mortgagee acquires the property and that may not equate to the end of a 2 year lease." But if you read their answer carefully, you will see that they might not even be aware of the law you mentioned, and might not have read enough of your question to even know any such law is relevant.

Even if you did sign a multi year lease with someone and place you in theirr home , the lender will still foreclose on the property, thus at the end of the day they will still lose the property.

Now the lender might consider honoring the signed lease and they might not honor the lease. I suspect they will not honor the lease as the lender has no office set up or way to continue to collect the rent from anyone over a long period of time.

In all probability the lender will offer the tenants money to break the lease or allow them to live there the legal minimum time before legally getting rid of them. I think that time is 90 days from the end of the sales date at the foreclosure auction.

Then there is the possibility of fraud. If a person know they are not making their monthly mortgage payments and then enter into a long term lease knowing the house is headed to foreclosure might be headed for more problems than they want to get involved in.

For tax and legal matters you should consult with your tax consultant or attorney.

So you should think about this before entering something that could possibly be illegal.

I hope this has been of some benefit to you,good luck.

"FIGHT ON"

While it is legal to rent out a place that is in foreclosure, most landlords would not sign a 2 yr lease even if they were not in foreclosure.

I'm sure the bank would find a legal way out of such a ridiculous lease.

EDIT: For those of you that obviously have not read the full law - the 90 days notice is only for if the tenant does not have a lease.

Here is the new law if anyone wants to bother actually reading it!!http://www.tenantstogether.org/downloads/S.896Rent...

You didn't read the act carefully. First, any such lease must represent a market value rent. No 'cheap deals' are covered under the law. Second, any lease transaction must be 'at arm's length', meaning no relatives. Third, your state may prohibit residential rental leases for more than a one year period. Nice try, but you missed all the requirements.

If the homeowner offers a lease knowing they'll go into foreclosure, or signs a lease when they're already in foreclosure, the lease may be declared void, you'll be S.O.L. and probably won't get any deposit(s) back.

Sounds pretty risky to me. You will be dealing with who knows who and with what lender and with how many liens? If you are some kind of a legal whiz or you really like to gamble then you could go for it.

There are so many unknowns even if you know the law. What is your purpose? Are you looking for a place to live or are you thinking you can live rent free for a period of time?

Remember most people are not going to tell you that their property is going into foreclosure nor even what bank or banks hold the mortgage.

no. the hot proprietor did not conform to the lease. The contract replaced into between you and the present proprietor. If i'm paying for a house less costly like that, i'm searching to make some money off of it or i'm detrimental as hell and searching for an area to stay. they are going to both favor to expose it over for a short earnings, (restoration it up and re-promote it at a more suitable value) or they are going to favor to fix it up and get someone in there who will pay more suitable than you're paying. there's a probability they are going to make it easier to stay in the journey that they are searching to easily lease it out besides. this protects them from searching a tenant of their personal, yet i imagine i might want to favor to interview and do a credit examine on someone formerly I agreed to employ to them. So, truly, it really is going to easily count on who buys it. truly, your proprietor is going abdomen up and is searching for an selection to foreclosure. So, both way you are able to ought to move out. Oh, for a classy twist, what in the journey that your landlord dies? My grandpa replaced right into a landlord and had tenants, yet he's not round to debris with it. resources is cut up between my dad and my aunt. they are going to likely ought to liquidate each thing. which potential promoting the resources it truly is rented out. issues take position. right here's an theory, besides the undeniable fact that, perchance you are able to furnish to purchase it?

Read the entire law. The rental amount will change to the FMV as set forth by the housing authority if the rent is substantially below that. This scumbag is not the first to think up this fraud. Additionally the renter has to be arms length, they can not be related in any way to the dirt bag.

In the case of this type of fraud they can have you out in 30 days.

No no no! The lender will honor their lease, however the lender gets the money.

A tenant can stay up to 90 days after the mortgagee acquires the property and that may not equate to the end of a 2 year lease.

realtor.sailor