Do I have any rights as a tenant whose landlord is in foreclosure and bankruptcy

Asked almost 6 years ago - Westland, MI

The house i am renting is in foreclosure and my landlord is filing bankruptcy. Am I going to be thrown out in the street or will I be able to stay. I have been paying my rent. Does that even matter at this point in time.

Additional information

Do I have any rights as a tennant whose landlord is in forecloser with the City of Detroit? I received a notice last year that the owner lost the home due to not paying the taxes. I called her, but she never returns my phone calls. The person who gave me the notice said, it's up to us to continue to pay rent, but the owner no longer owns the home. She tried to evict us, but when we showed up for court she didn't. She has again filed papers with the court to have us evicted, but seeing that she doesn't own the home and the city does, can she still evict us? Just recently I recevied another paper fromt he city stating she owes for 2006, 2007 and 2008. What can I do?

Attorney answers (1)

  1. Michele Ann Peters

    Contributor Level 7

    Answered . Please speak with a bankruptcy attorney in your State to determine if there are State Laws being followed in addition to the Federal Laws which govern all bankruptcy proceedings. I am an attorney in NY and NJ.

    There is a case that the courts have relied upon to justify a renter's ability to remain in the premises once a landlord has filed bankruptcy: In re Haskell, L.P., 321 B.R. 1 (Bankr.D.Mass. 2005), [11 U.S.C. 365(h)(1)(A)(ii)] which held that the renter maintains all rights under the lease when a landlord files a bankruptcy case. The landlord and the landlord’s bankruptcy trustee, cannot interfere with the use, possession, or quiet enjoyment of the apartment or premises. All payments due and the timing of the payments remain the same. The tenant keeps all existing rights of renewal and extension.
    Please keep in mind that the case was in regards to a commercial lease.
    Saying all of that, the bankruptcy courts especially in regards to residential housing, have been adament that banks accept renter's payments toward delinquent loans so that the tenant does not lose their home. I am quite sure that would be pursued on your behalf; however, you should seek counsel.
    Collect all of your rental receipts and see a bankruptcy lawyer who will advise you as to the next steps you should follow.
    I hope this is helpful.
    Best wishes,
    Michele A. Peters

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