Florida Tenant laws. Short-sale, Foreclosure, and making our rental payments.

Real Estate 1 views 1 answers
We recently found out our landlord is trying to do a short-sale on the property we are currently renting from him. He gave us the first opportunity to buy; however, we are unable to do so at this time. It is my understanding that he will try to find someone to short-sale the property to or else it will go into foreclosure. It is my understanding from what I have been told, that (1) if someone purchases the home through means of a short sale, the new home owner would still have to abide by our current lease agreement. (2) If they are unable to sell the house in a short-sale and the home were to go in foreclosure, I was told it is illegal for the landlord to continue collecting rental payments once the foreclosure process begins on the property. Can you clarify or verify any of this?

Attorney Answer

1
Margery Golant ·
Any new owner would still be bound by the terms of the lease. However, it is completely wrong that if foreclosure is commenced, the property owner cannot collect rent. You are not entitled to live there for free. Additionally, property owners are capable of successfully defending or working out foreclosures, and some foreclosures that are filed are filed in error. Under Florida law, unless you pay rent, your landlord can begin eviction. However, if you have an attorney who understands this area of law, you may be able to interpose certain legal defenses, or you may be able to use the filing of the foreclosure to break your lease if that is something you want to do. There is nothing you can do to defend against foreclosure, however, you should have an attorney to protect your rights in the foreclosure if one is filed, since now there is new law which provides protection to tenants. More particularly, if you have a lease, the law provides that you be allowed to live out your lease, even if the lease runs past the end of the foreclosure case assuming it goes to sale. If you do not have a lease, the law provides you with a period of 120 days after the end of the foreclosure case assuming it goes to sale.
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