my landlord is in what he and his lawyer are calling a "modification" process and stating he is still the legal owner--do I have to still have to pay rent?
State/Country relating to question: Illinois
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Good afternoon. Unfortunately, you do have to pay the rent. Actually there are twocontractual relationships involved here...the tenant's with the landlord andthe landlord's with the lender. One does not affect the others. The tenant'scontract with the landlord is for the tenant to pay the rent in exchange foroccupancy. As long as the tenant retains occupancy, the tenant is obligated topay the rent. Whether or not the landlord uses the rent to pay the mortgage isnot relevant to the tenant's contract with the landlord, but only affects thelandlord's contractual relationship with the lender. The tenant's tenancy is not terminated by aforeclosure. The "Protecting Tenants at Foreclosure Act of 2009"provides that bona fide leases survive a foreclosure -- meaning the tenant canstay at least until the end of the lease, and that month-to-month tenants areentitled to 90 days' notice before having to move out. An exception was carvedout for the buyer who intends to live on the property -- this buyer mayterminate a lease with 90 days' notice.
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is "modification" just another word for foreclosure and we will be evicted anyway?
No... a "modification" is an attempt to restructure the loan to avoid foreclosure. Neither a modification or a foreclosure will terminate your tenancy and they will not have the right to evict you unless you don't pay the rent.
so is my lanlord is still the "legal" owner of this unit and we are to continue with rent? Should we not pay rent till we get proof from his bank that he still owns this place?
Yes....until there has been an actual foreclosure sale, the owner is still your landlord and you would pay him the rent. You will need to pay him the rent until the existing owner or the new owner notifies you that rent is to be paid to someone else.
Texas lawyer for 32 years; Also RE developer
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