Who do I pay my rent to when my mortgage company is in foreclosure? The bank or the management company

Asked almost 3 years ago - Verona, WI

I receive a letter from an attorney that was very professional indicating that the management company was in foreclosure and beginning with February's rent I was to start sending the payment to them. The next day i received a correction letter from the attorney because they had made two errors in the first letter, first with who to contact and second on who the check should be made payable to. A few days later I received a letter from the Management company indicating that I should continue to pay the rent to them and the lawyer and the bank were being dishonest. I guess I don't know what to do. I feel caught between a rock and a hard spot.

Attorney answers (4)

  1. Deborah Ann Stencel

    Contributor Level 12

    2

    Lawyers agree

    Answered . I feel that I would like to review all the relevant documents and correspondence before answering this question definitively. The reason I felt the need to answer was to to caution that you need to pay your rent and keep good records/receipts/proof of payment regardless of whom you send the money to.

    I suspect the answer lies in if there is any legal reason (such as a court order or an agreement between the lessor and another party assigning the rents) why you would no longer pay the entity with whom you signed a lease.

    You could try contacting the lawyer who sent the first letter and asking what the legal basis is for you to send the money to a new party. Then call the management company and ask the same/similar question. Obviously you need to act quickly as rent is presumably due in a few days.

    If you'd like to call my office on Monday to discuss it, I'd be happy to discuss it with you.

    My response to this question does not create an attorney-client relationship and does not consitute legal advice.... more
  2. Alan D. Walton

    Pro

    Contributor Level 19

    3

    Lawyers agree

    Answered . I suggest you open a new bank account to escrow the rent. You need to correspond with each entity that is demanding that you pay rent to it with a copy of your deposit slip showing the rent has been paid to the bank account, and asking them each to provide you with evidence as to who is entitled to payment. If there is no response, or if they are conflicting, you can file in an interpleader action where you in essence sue all the claimants, deposit the money with the court and let them convince the judge which of them is entitled to the money.

  3. Steven Anderson Leahy

    Pro

    Contributor Level 17

    2

    Lawyers agree

    Answered . I agree with my colleagues. You should put the rent money aside and let the other parties fight it out.

    I hope this helps.
    Respectfully,
    Steven A. Leahy
    www.chicagotaxteam.com

    Please note that the above is not intended as legal advice, it is for educational purposes only. No attorney-... more
  4. David R. Barnes

    Contributor Level 2

    Answered . Atty Walton generally has a good answer. Rather than starting a separate interpleader action, you may simply be able to join the foreclosure action as a third party and ask the court to decide where the rent should go. This would be a lot easier and less expensive for you. Some judges will permit this, ohters will not - depending on the judge and local court rules. It is worth a try.

    My response to this question does not create an attorney-client relationship and does not consitute legal advice.... more

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