My landlord is currently trying to short-sell the house I'm living in. I just found out today that if they're unable to sell it within the next couple months, they'll give it back to the lender. I'm not sure exactly what this means - whether there's some sort of voluntary title assignment process or whether they simply stop paying and the house actually goes through foreclosure.
In a short sale, just like in a regular transaction, my lease stands and the new buyer can't evict me until the lease period is up. In a foreclosure, the lease gets wiped out due to the "first in time, first in right" principle, although the bank still has to give us 90 days' notice. However, I haven't been able to find any information about what happens when the house gets voluntarily returned to the bank.
Is there an actual process for returning the house to the bank that avoids foreclosure? If so, how does it affect an existing lease? Can the bank claim "first in right" without going through the foreclosure process in court?
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My landlord is currently trying to short-sell the house I'm living in. I just found out today that if they're unable to sell it within the next couple months, they'll give it back to the lender. I'm not sure exactly what this means - whether there's some sort of voluntary title assignment process or whether they simply stop paying and the house actually goes through foreclosure.
In a short sale, just like in a regular transaction, my lease stands and the new buyer can't evict me until the lease period is up. In a foreclosure, the lease gets wiped out due to the "first in time, first in right" principle, although the bank still has to give us 90 days' notice. However, I haven't been able to find any information about what happens when the house gets voluntarily returned to the bank.
Is there an actual process for returning the house to the bank that avoids foreclosure? If so, how does it affect an existing lease? Can the bank claim "first in right" without going through the foreclosure process in court?
#housing