RENT SKIMMING & TENANTS' RIGHTS

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fighter08_IHB

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Hey I'm new here & just trying to find out some info on my rights as a tenant. I moved into a townhouse in January of this year & have recently discovered the owner hasn't made a single mortgage payment since buying the property almost a year ago. Of course he continues to accept rent from me, on top of an exorbitant security deposit. The townhouse is up for short sale right now, and will become bank owned in about six weeks. I know if he's is foreclosed on then I will get thirty days to pack up and get out. Can anyone tell me how to proceed from here? I'm just trying to recoup whatever I can. I know I can sue him after the fact, but he's not even a U.S. resident and I know I'll never see a dime. Is it legal to withhold future rent payments and ask that he take it out of the deposit? Should I try to scare him with a law suit? Any assistance is greatly appreciated...
 
pretty much you're SOL. if you're going to attempt anything other than just letting it go, consult an attorney.

personally i would stop paying the rent. once the home becomes bank-owned, you definitely should stop paying because he's no longer the landlord. in the meantime if you stop paying, he'll have a hard time taking action against you. the process of evicting a tenant would take longer than he's got and i doubt you're getting your deposit back anyway.
 
The landlord could file for collection though, which would show up on your credit history. It can be disputed, but until the bank takes possession the lease signed is still in effect. Someone correct me if I'm wrong.
 
ya, what they said. get a lawyer. have them set up a trust account that you will pay your rent into. and have them send your landlord a letter that you are using the security deposit as the last month's rent (if that is what it is). then start looking for a new place.

this way, if you are hauled into court for eviction, you have a perfect defense. i suspect that the judge will side with you at the eviction hearing.

the other thing is, if the landlord isn't a us national, they will probably not want to go to court at all, and will just accept your attorney's letter as 30d notice.

also, they are unlikely to notify the credit bureau's, but if they do, you can just send the letter from your attorney to them, and they will clear it.

good luck
 
One other thing I would do if I were you, is contact the lender before they foreclose on the douchebag. They may want you out fast, and you need to be compensated to move out quickly. Bitch and moan about the landlord and the deposit, and how you were wronged. Basically try to milk them for as much as you can for their incompetence in giving this moron a loan.

Good luck, and I am sorry you have to go through this. If you search the forums, there are some tips of how you can avoid this on your next place.
 
fighter08 said:
Hey I'm new here & just trying to find out some info on my rights as a tenant. I moved into a townhouse in January of this year & have recently discovered the owner hasn't made a single mortgage payment since buying the property almost a year ago. Of course he continues to accept rent from me, on top of an exorbitant security deposit. The townhouse is up for short sale right now, and will become bank owned in about six weeks. I know if he's is foreclosed on then I will get thirty days to pack up and get out. Can anyone tell me how to proceed from here? I'm just trying to recoup whatever I can. I know I can sue him after the fact, but he's not even a U.S. resident and I know I'll never see a dime. Is it legal to withhold future rent payments and ask that he take it out of the deposit? Should I try to scare him with a law suit? Any assistance is greatly appreciated...
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WHY ARE YOU DOING WHAT I DID...

Looking for advice in the wrong place,

From what I have read and gathered your landlord is committing FRAUD "Rent Skimming"

Civil Code 890

890. (a)

(1) "Rent skimming" means using revenue received from the rental of a parcel of residential real property at any time during the first year period after acquiring that property without first applying the revenue or an equivalent amount to the payments due on all mortgages and deeds of trust encumbering that property.

He has NO right to collect rent if he is not paying the mortgage,

I am having the samr thing happen right now...The 2nd time in one year,

Call this attorney,

You may be intitiled to return all PAID rents plus damages up to 3 times the amount

And the attorneys will take it on contigency, MEANING YOU dont pay unless they win,

Call

Tenants, Did your landlord collect rent but not pay

mortgage?

You may have value rights to recover past rent paid and

more.

Experienced attorney will handle case on contingency fee

basis.

Contact me for a free case evaluation to determine if your

situation qualifies.

Tom Hrouda

Attorney at Law

www.tghlawoffice.com

www.tghlawoffice.com

Good Luck, Wish me the Same, I'm pissed this time
 
Daedalus said:
The landlord could file for collection though, which would show up on your credit history. It can be disputed, but until the bank takes possession the lease signed is still in effect. Someone correct me if I'm wrong.
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The only person or entity that may be entitled would be the mortgage holder but I have yet to see them go to the tenant for payment, read my post at bottom
 
IACRenter said:
I would get a lawyer quick then stop paying rent to the scum lord.
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I told my landlord yesterday that "NOD" Notice of Default had been filed and that I wasnt going to pay another dime...

He threatened to file a 3 day notice to pay or quit...

I told him to have at it. file.

In the mean time I am going the the Recorders office and filing a Lis Pendeds against all his properties

I'm not telling anyone to do the same, but what the hell do you think hes gonna tell the judge when I present that he took 10k of mine and used it for unintended purposes.

This my friends is labeled as, Rent Skimming, Larceny, AKA Fraud, the Dude hasnt made a payment since I moved in!!

Can you tell Im pissed??
 
I told my landlord yesterday that “NOD” Notice of Default had been filed and that I wasnt going to pay another dime…

He threatened to file a 3 day notice to pay or quit…

I told him to have at it. file.

In the mean time I am going the the Recorders office and filing a Lis Pendeds against all his properties

I’m not telling anyone to do the same, but what the hell do you think hes gonna tell the judge when I present that he took 10k of mine and used it for unintended purposes.

This my friends is labeled as, Rent Skimming, Larceny, AKA Fraud, the Dude hasnt made a payment since I moved in!!

Can you tell Im pissed??
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Sorry you have to go through this. Good luck, and keep us posted.
 
I wouldn't pay, personally.

In Florida, it's called "equity skimming".

I do have one insight. What I've seen here is that the fliplord tries

to hold onto the property, and does pay the mtg payments, sometimes

for quite a while, and then gives up because the tenant is not paying

near enough to break even. If the fliplord is a quasi honest person,

suppose he offers what he is getting from the tenant to the bank. If

only to reduce the amount owed at foreclosure. I'll tell you what

will happen.

The bank will reject it.

So the landlord can politely ask the tenant to leave because he doesn't

want to be guilty of even a minor crime.

Tell the tenant he can live there for free until the foreclosure is over,

which may be a year away.

Or take the money.

What I would do is tell the tenant what's going on, reduce the rent slightly

so the tenant can save up to move elsewhere, and keep the money.

I would never rent to a tenant when I wasn't paying anything on the

mtg already, without telling the tenant and letting them decide what to

do.

The banks are shooting themselves in the foot by refusing to accept some

cash flow.
 
I just went onhttp://www.checkmylandlord.netand checked to see if my landlord’s been paying the loan on the house I’m renting, there was no charge. You can also order a report and see if your neighbors’ houses have gone into foreclosure. I guess this decreases the value of your house.
 
My grandmother board is up for foreclosure. We pay 4500 a month and she has not paid rent since April!! I researched it and show they will evict the 6 seniors in the home about Dec. This is just wrong!! She must be collecting like 10-15K a month and not paying a freaken dime. I can't stop paying in fear of her care. Also she has not informed none of the families I know because I checked it out.
 
wendyinoc said:
My grandmother board is up for foreclosure. We pay 4500 a month and she has not paid rent since April!! I researched it and show they will evict the 6 seniors in the home about Dec. This is just wrong!! She must be collecting like 10-15K a month and not paying a freaken dime. I can't stop paying in fear of her care. Also she has not informed none of the families I know because I checked it out.
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That is really annoying. I wonder if this landlord can get in trouble for "senior abuse?"
 
There is one important point about rent skimming not discussed above:

"Rent skimming" means using revenue received from the

rental of a parcel of residential real property at any time during

the first year period after acquiring that property without first

applying the revenue or an equivalent amount to the payments due on

all mortgages and deeds of trust encumbering that property.

The "first year" provision in the law makes in almost not applicable. When the law was written, the framers probably did not anticipate 100% financing on refis or they probably would have written it differently. If your landlord is skimming your rent, and if they have owned the place for more than one year, there isn't anything you can do about it. It is not illegal. You can sue them for your security deposit after the fact, but if they had the money, they probably would not have let the property go into foreclosure. It is just a bad situation all around.
 
IrvineRenter said:
There is one important point about rent skimming not discussed above:

"Rent skimming" means using revenue received from the

rental of a parcel of residential real property at any time during

the first year period after acquiring that property without first

applying the revenue or an equivalent amount to the payments due on

all mortgages and deeds of trust encumbering that property.

The "first year" provision in the law makes in almost not applicable. When the law was written, the framers probably did not anticipate 100% financing on refis or they probably would have written it differently. If your landlord is skimming your rent, and if they have owned the place for more than one year, there isn't anything you can do about it. It is not illegal. You can sue them for your security deposit after the fact, but if they had the money, they probably would not have let the property go into foreclosure. It is just a bad situation all around.
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Right. I'm not aware of any other similar laws above, and assuming there aren't any, there ins't really any recourse a tenant would have against a LL who doesn't pay the mortgage. That is between the LL and his lender. If the tenant is getting the benefit of the bargain (i.e. a home) in exchange for the rent, what can the tenant realistically expect? Now if the tenant's tenancy is at risk in the middle of a leasehold, there may be recourse there.
 
JLegend said:
IrvineRenter said:
There is one important point about rent skimming not discussed above:

"Rent skimming" means using revenue received from the

rental of a parcel of residential real property at any time during

the first year period after acquiring that property without first

applying the revenue or an equivalent amount to the payments due on

all mortgages and deeds of trust encumbering that property.

The "first year" provision in the law makes in almost not applicable. When the law was written, the framers probably did not anticipate 100% financing on refis or they probably would have written it differently. If your landlord is skimming your rent, and if they have owned the place for more than one year, there isn't anything you can do about it. It is not illegal. You can sue them for your security deposit after the fact, but if they had the money, they probably would not have let the property go into foreclosure. It is just a bad situation all around.
Click to expand...

Right. I'm not aware of any other similar laws above, and assuming there aren't any, there ins't really any recourse a tenant would have against a LL who doesn't pay the mortgage. That is between the LL and his lender. If the tenant is getting the benefit of the bargain (i.e. a home) in exchange for the rent, what can the tenant realistically expect? Now if the tenant's tenancy is at risk in the middle of a leasehold, there may be recourse there.
Click to expand...

There is some recourse. You can sue for any rent paid for which you could not occupy the premises. However, since most people only pay 30 days in advance, and since it takes 30 days to evict someone, there is usually not any damages here. The only real recourse the tenant has is for the security deposit. The deadbeat landlord is usually insolvent, so even if you win the case, you can't get blood from a turnip.
 
you can 'persuade' the bank by telling the property manager that the rental will be in much, much better condition after they evict you and you vacate, if they pay you 'cash for keys' equivalent to your security deposit, or more.

personally, I would start the persuasion by inquiring if they know the going rate for a bag of cement mix, and how much copper pipe and wire bring per pound these days.
 
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