I have lived in my rental home for 4 1/2 years. I have never missed a payment and have a lease so I felt secure. I have 5 children and my husband and I work 6 days a week/ 12+ hour shifts to make sure we are never at risk of being homeless. Being at the mercy of a landlord has always unnerving, but I have not been in a position to purchase a home since my divorce 15 years ago that forced me into bankruptcy.
Out of the blue, with no hint from my landlord, certified letters started to arrive at my home showing that he was in foreclosure. I panicked because I had no clue what that meant for me and my family. I called the local free legal services and they abruptly told me... not to worry as the bank would honor my lease. However, they would not listen nor consider the thousands I would lose in deposits and water bills that my county utility company had transferred to my address from my landlords other rental properties.
I know I am luckier than many tenants because I noticed that something was off when mail came to my house for my landlord 3 months before he actually will lose the house. I tried to research information on line, but I only came across paid sites that were confusing and conflicting as to what my rights are. Then I found Tenants Together. I left a message asking for them to call so that I could see what options I had available to me. They called me back promptly. I told them my address and they were able to provide me with the stage of default that my landlord was in, the date the forclosure/sale would take place, and how I would then have 20 days notice of the sale. They then informed me of options of how to best recover my deposit and other contract agreements as stated in my lease.
The first step that I chose was to contact and meet with my landlord to discuss how this financial crisis he was in was going to effect me. At the meeting,he said to not worry and that he would be able to do a short sale or save the home. I know he was just desperate. I immediately told him that I believed he was already in default and had not paid his mortgage payment for months. I explained the deadline of the foreclosure/sale and he saw that I knew what I was talking about because I had actual dates that were provided to me by Tenants Together.
I explained that I knew there were options that I could utilize (go to court/arbitration/etc.) but that I would prefer to come to an agreement with him to minimize my losses and to not add further to his financial crisis.
I showed him that I knew that my garbage, sewer, and water was going to be turned off (it is in the lease for him to pay this). I also showed him that all of the bills from his other forclosed properties were transferred onto my address and that I was going to be stuck paying the bill to keep my water on. Sure I could sue him after the fact, but we all know that he will have nothing left to pay me his debts, much less my deposit. I told him that I did NOT want to NOT pay him rent by putting the funds in a secured account to prove I had not breached my contract, but that I have to protect my family's interests.
We were able to agree to a reduction in the rent where I would pay the bills he owed. We also agreed that he immediately would give us a letter of reference for when we have to leave. And we worked out a further reduction in rent to offset the loss of deposit, etc... over the next three months until the house sells/forecloses.
I am still going to lose at least $400.00, but he is losing everything and would be devastated to not have my rent money to live on (and it is Christmas). Believe me, that is alot of money to us. However, by softening the blow by contacting him early, and by knowing how to approach him based on the advice of Tenants Together,
I believe we saved ourselves heartache and a court battle, and probably even money. I am grateful to Tenants Together for suggesting that I have this sit down with him ASAP so that we could take a little rent off at a time resulting in him feeling OK and us feeling OK about the outcome.
This economic crisis is now effecting the landlords too, but it has been my experience that the laws and thier loopholes are designed to help 1)banks, 2)landlords, 3) Not a tenant! This organization is wonderful because it provides knowlegde of a tenants rights as well as information about how to best achieve a successful compromise.
Thanks Tenants Together!