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Renters Rights
Posted by Anonymous . updated on 5/14/2009
We rent a home from a rental office and have been told that the owner is in forclosure. We only have a 3 months left on the lease and asked if we could move out before the lease is up. The rental office said that we are still bound to the lease. Is this true if the home is being forclosed on. We have already started looking and would like to give a 30 day notice.
Answers (1)
 
Generally speaking, you are still under the lease and could be considered in breach if you do not comply with the terms of the lease. As such, if you leave before the expiration of the lease, the landlord could put a claim on your deposit and file an action for eviction and breach of the lease. However, be realistic in making this decision, evaluate whether the landlord will really take action especially in light of having to pay court filing fees, an attorney (if the landlord is a corporation) and the time required. If the landlord were to file an action, you may assert an affirmative defense that the landlord was itself in breach by being in foreclosure. Furthermore, depending on where the foreclosure stands, it is possible that by the time any action is heard by a court, the house will already have been sold at a judicial sale. A good solution: use those facts to negotiate a lease termination with the landlord under your terms.
 
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