I have been renting a house in Michigan for over four years now. I did not sign any type of lease agreement with the owner. The owner moved out of state and needed somebody to make the house payment in the Michigan home, I have been putting the house payment directly into her bank account every month for over four years now and last week the house was tagged with a foreclosure notice.
You have rights as a tenant. You will likely not be able to do anything about the foreclosure, unless you try to buy the home from the bank or from the landlord, but you will have a certain time period before you can be evicted. Whether it is 30 days or 6 months depends. you should talk to a lawyer now. Also you should write the foreclosing bank a letter (certified mail & keep a copy) that lets them know that you live there. Good luck,
Ms. Nepton is licensed to practice law in Michigan. The response herein is not legal advice and does not create an attorney/client relationship. The response is in the form of legal education and is intended to provide general information. Oftentimes the question does not include significant and important facts and timelines that, if known, could significantly change the reply and make it unsuitable. Ms. Nepton strongly advises the questioner to confer with an attorney in order to ensure proper advice is received.
I take you are putting the rent payment you are making directly into the landlord's bank account. That does not mean that the landlord has been paying the mortgage, without breach of the loan agreement. You are in a precarious situation because the mortgage company's interest is superior to your tenancy interest. You can either move to new quarters or try an contact the mortgage company for an attempted leasing arrangement, directly with the mortgagee, after the foreclosure becomes final. Until that time, set aside each monthly rent payment in an escrow account (independent of you) and advise the landlord, in writing, that you are doing that because she has breached her month-to-month landlord obligation to you. Seek legal advice if the landlord balks at this.
This commentary does not result in any attorney/client relationship nor constitute legal advice as to a particular fact situation or status of a reader. Consult and retain legal counsel in the State of Michigan for pursuit of such a relationship.
Was the payment amount you were remitting each month.. the exact amount of the rental payment due and owing each month? If so, then you were simply complying with your obligations as a month to month tenant. If the home is in foreclosure, for whatever the case may be, you'll have to be served with process and named in the action as either your specific name, or "Jane Doe" and most likely (unfortunately) be subject to eviction proceeding. There are most likely, covenants in the mortgage that dictate that the mortgage is superior to any/all lease agreements. Seek the advice of a local real estate/bankruptcy attorney as soon as possible. Good luck to you.
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