sje123

Renting when behind on mortgage

Recommended Posts

Is it illegal to rent out your home if you are behind on your mortgage?

If you have a $3000 mortgage payment and you cannot sell your house for what it's worth and can no longer afford the mortgage, can you move somewhere else, rent out the home for whatever you can get, save all the money to send to the mortgage company and try to work with the bank on a solution while being out of the house?

Link to post
Share on other sites

it might be. i dunno.

i know people who got kicked out of they house because the right owners didnt pay the mortgage.

then again,... i live in a foreclosed on apartment building. everyone here still pays rent though to the same person. maybe i shouldnt be paying this rent

maybe if you are really paying on the mortgage it might be ok. if you dont pay and your renters get kicked out, i imagine they might be angry.

Link to post
Share on other sites

If you lose it the house, the new owner will have to honor the tenants lease or rental agreement and give them 90 days notice or pay them to move. My daughter is in this exact position. A 1 year lease on a now foreclosed house. She just got a 90 day move out notice with the info on them honoring the lease. They are negotiating a payoff for them to move out sooner. They were going to continue renting it to her family but they changed their minds? I think because the house is not legally habitable my daughter and her husband where doing repairs for much reduced rent. It was auctioned but no buyers lots of empty houses in Oregon 20% unemployment officially. I am sure it is much higher in reality.

Link to post
Share on other sites

That's what I thought too because I actually just saw a lady on Youtube talking about how she had to move out of a house that was foreclosed on and they didn't know until someone showed up and said they had 24 hours to be off the property.

Sorry, but the new owner does not HAVE TO honor a thing. Especially if the new owner is a bank that foreclosed. Many times they WILL, but don't kid yourself and think they HAVE TO.
Link to post
Share on other sites

By law I believe it is actually 60 days I am trying to remember if it is 60 or 90 is my issue right now. They cannot just vacate them and banks who have done this have gotten in big trouble when people have fought it. It really in this case similar TO JDBS, but has been far worse because these laws been forgotten and half time sheriff been called in and has proceeded in ways illegal!!!!. this has actually thankfully been something on the news and that publicly.

On the ops question I have no idea, but to best of my knowledge and seeing what has been happening I don't think it is illegal.

Link to post
Share on other sites

People who buy property and then rent it out are called "landlords." This is not an illegal profession. The only glitch you may run into is if the lender complains that you took the mortgage under false pretenses, and that you agreed that the property would be your primary residence. You should go back and read your mortgage contract. Even so, if the tenant pays you and you then pay the mortgage, who'll know? Lenders don't investigate people who pay. If anything, it would be a contract violation, which is civil, not criminal. Foreclosure is a different issue, they would then find out about the rental and force a court ordered eviction as they have no obligation to honor a deal that is contradictory to the terms of the mortgage. That's why they have the primary residence clause, to avoid situations like this.

Link to post
Share on other sites
Guest
This topic is now closed to further replies.