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.
Chapter 7 Bankruptcy Attorney
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. The information is provided as a courtesy only. This format of written question and answer is too informal and lacks sufficient detail. It is almost never possible to give quality legal advice without a full set of facts and the opporutnity to have a dialog where questions are asked and answered. Moveover, posters on the internet should be aware that confidentiality is not guaranteed online. I am licensed to practice law in WI and IN.
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 lawyers agree
I agree with my colleagues. You should put the rent money aside and let the other parties fight it out.
I hope this helps.
Steven A. Leahy
Please note that the above is not intended as legal advice, it is for educational purposes only. No attorney-client relationship is created or is intended to be created hereby. You should contact a local attorney to discuss and to obtain legal advice.
Real Estate Attorney
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. The information is provided as a courtesy only. DO NOT RELY UPON INTERNET COMMENTS. Seek legal advice with an attorney who has the full set of facts and the opporutnity to have a dialog where questions are asked and answered.