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,
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