Landlord Morgage Foreclosure
I recieved a morgage foreclosure notice from the county sherrif, stating my landlord’s morgage is in foreclosure. It state the property would be sold on the 25th of Oct. I was told the bank will by it, and then my landlord will have 6 months to come up with the past due balance or sell it. my first question is can the landlord sell the property after the 25th of Oct. even though the bank will own it. and do I have a legal obligation to continue paying my rent to her, or do I need to contact the bank that owns the property. I currently have a month to month lease.
Re: Landlord Morgage Foreclosure
I think as long as you are in possession you need to pay rent. You would pay it to the “receiver” if one is appointed; presumably you would get notice of the appointment of a receiver. The landlord cannot sign you up for a long-term lease, but you already said you were on a month to month lease. You will want to verify when the period of redemption expires, as there is no guarantee that you can stay after that. You might contact the foreclosing attorney to see if they will pay you to move out.
Here is a copy of the statute that addresses your situation:
Table of contents for Chapter 504B
504B.151 Restriction on residential lease terms for
buildings in financial distress.
Once a landlord has received notice of a contract for deed
cancellation under section 559.21 or notice of a mortgage
foreclosure sale under chapter 580 or 582, the landlord may
enter into a periodic residential lease agreement with a term of
two months or less or a fixed term residential tenancy not
extending beyond the cancellation period or the landlord’s
period of redemption until:
(1) the contract for deed has been reinstated or paid in
full;
(2) the mortgage default has been cured and the mortgage
reinstated;
(3) the mortgage has been satisfied;
(4) the property has been redeemed from a foreclosure sale;
or
(5) a receiver has been appointed.
This section does not apply to a manufactured home park as
defined in section 327C.01, subdivision 5.
HIST: 1999 c 199 art 1 s 11
Sam Calvert
Calvert Law Office
1011 2nd ST N #107
Saint Cloud, MN 56303