Real Estate Law
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Hi, My name is XXXXX XXXXX I will be assisting you. My goal is to provide you with Excellent Service, but please keep in mind that the law does not always favor our position and I can only give you an Answer within the law,
You did an excellent job of explaining your situation and I understood you completely,
" I need to know if the Statutory Warranty Deed can stop the foreclosure and if it also designates our landlord as owner of the property"
1. A. If property is encumbered by a mortgage, it will remain on the property until it is paid off or the lender forecloses for non-payment. If title to the property is transferred, the mortgage remains unaffected in any way, regardless of the type of Deed used to transfer title. If the lender has started mortgage foreclosure, there is no type of deed which will delay or stop the lender from foreclosing because the lender's lien is superior and is in first position.
B. A mortgage is the collateral, so when a borrower gives a mortgage to a lender, he is using the property as collateral to assure repayment of the amount of the loan. If the borrower does not make the monthly mortgage payments as provided in the Note and Mortgage, then the lender proceeds against the collateral (Forecloses on the mortgage). It does not matter who the owner is because the lender is taking the collateral because the loan was not paid in accordance with the terms and conditions stated in the Note and Mortgage. Therefore, whether your landlord is named in the mortgage foreclosure proceedings, or his friend is named, makes no difference because the fact remains that the lender is going after the collateral;
You also asked,
"I to know if we are obligated to pay any further rent since we have never been contacted by the person being foreclosed upon since obviously the rent we have been paying our landlord has not being used to pay the outstanding loan ("his friend").
A tenant is obligated to pay rent as long as he or she continues to occupy the property, whether under a lease, month to month tenancy, or any other type of rental, or lease arrangement. The lender is not foreclosing on the person, he is foreclosing on the mortgage, on the collateral. The law does not permit the tenant to question the landlord what he does with the rent payments because the tenant is protected. If a lease is still in effect and has not expired, the lender who forecloses on the mortgage cannot remove the tenant or ask the tenant to leave until expiration of the lease. If the tenant is a month to month tenant, the lender still has to give written notice to the tenant before the tenant will be obligated to vacate. But, either way, the tenant is not required to vacate just because the lender is foreclosing on the mortgage.
I wish I could have told you that you did not have to pay rent, and it would have been my pleasure to do so, but I have an obligation to you to give you only correct Answers and information, so I am respectfully XXXXX XXXXX you not hold Washington law applicable to your situation against me,
Please be kind enough to rate Excellent Service" so that I receive credit for assisting you, it will not cost you anything additional to give me a positive rating, and that is the only way I can receive credit, Thank you for understanding,
Bonus and Positive Feedback on survey is very much appreciated,
What if we don't pay rent. My sister-in-law is an attorney and she has advised us to withhold rent but to set it aside and not spend it, but she practices family law. She said not to answer any communication from our landlord and if he begins to become harassing, to let her know and we should let her know and she will contact the landlord. Bad or good idea?
Thank you for your reply, Kim,
On what grounds would you be withholding rent ? (even if you were to place it in an escrow account)
My sister-in-law believes that because we have not been paying rent to whom she believes is the proper person/entity and since our lease expired in July of 2011 that our landlord is illegally collecting rent.
Of course the final decision is up to you, but I do not think it would be wise to withhold the rent because of the following possibilities:
1. Did you do a title search to ascertain who the owner is ?
2. If the person collecting the rent is not the owner, he could very well be the agent of the owner and he is supposed to be collecting the rent;
3. Withholding the rent without just cause (for example, you requested repairs but they were not performed) may be the basis for eviction proceedings. This would be true even if you were depositing the rent in an escrow account because the owner/landlord would not be receiving the rent but you continued to occupy the property;
4. Withholding the rent, even in an escrow account can expose you to liability for late payment fees and may be reported to the credit bureaus and it would affect your credit,
Can you explain to me how to perform a title search in the State of Washington? Are they recorded somewhere specifically? I have the Tax Parcel Number and Legal Description and Loan Number. Does this help?
It is very difficult and confusing to do a title search because it entails searching in multiple books. First, you would look in the Grantor-Grantee index. You would go back a minimum of 60 years and then make sure that there are no gaps in title. For example, A, Grantor, conveyed to B, Grantee. Then, look up B as Grantor and he conveyed to C, Grantee. If there is a gap in title, you would see it skip C, D, and E and go to F as Grantor, to G as Grantee, and so on. But, you would have to search other books to see how title went from C and jumped to G. That gap would have to be explained.
Then you would go to the Judgment index and look up each Grantor to see if any judgments were recorded against anyone who had title. Then search the books to see if the judgment was satisfied.
You would do the same thing in the Mortgage Book for each Grantor in the chain of title. You will see that the mortgages will be referenced as in Book ____, Page _____. Then, you would have to cross reference each mortgage to see if a properly executed Satisfaction of Mortgage was recorded for each Grantor, until you brought the title up to the present date, together with all judgments and Mortgages.
Title companies have their own searchers at the Court House, in the Recorder of Deeds Office to do title searches. Some Court Houses have all the books in one room - Grantor-Grantee Index, Judgment Index and Mortgage Book. Some have the Grantor-Grantee Index in the Recorder of Deeds Office while the Judgment Index and Mortgage Books are in another room. But, the searches are performed in the same way in every State.
When we entered into our Lease, we had just gone through foreclosure and Chapter 13. We were in a desperate state, and I felt that it would be more forthcoming to tell him ahead of time then for him to find out in a credit check. He just kept saying "that's not a deal breaker" and he rushed us within two days to sign the lease and give him a deposit. He didn't even show the home to anyone else. When we signed the lease he had a copy and my husband and I shared a copy. He rushed through the lease, we signed it, and I gave him a deposit of $2,600.
We were just so thankful that we were able to find a place to live that I didn't go over the lease in detail until the foreclosure situation arose. I have now discovered that the lease reflects that we only paid him a total of $1,500.
What recourse do we have if we move before the foreclosure is complete and what recourse do we have if we stay until the foreclosure is complete. I have requested a hard copy of the check from the bank.
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I wish you the best of luck,
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