Uhhhh... (foreclosure related)

kristalovesjared · May 2011

We just moved into a townhouse in April and signed a 6 month lease because DH has been working in Portland and was told it would be until at least October of this year. We paid first/last rent and deposit upfront. We just talked to our neighbors and found out the building (5 townhouses) is going up for auction in June because it's been the owner has been defaulting on the loan (for over a year!!!!)! We were obviously not told any of this by the landlord/ owner of the building and apparently he wasn't going to tell us this. We're hoping whoever buys the building will just keep renting it out and not raise the rent, but who knows what could happen. We're worried we'll be kicked out without much notice and lose our last months rent and deposit money.

We're not quite sure what to do in this situation? Has anyone gone through it or have any advice on what to do now? Not great news to get when we were having a nice weekend!

KNemo · May 2011

Do you have a copy of the Lanlord/Tenant Act of Washington? If not, here is a copy:

LTA of Washington

I just quickly glanced at the areas that would pertain to your lease, and I think that the agreement between you and your landlord has to be upheld. I am by no means and attorney, but you signed a legal and binding contract with you landlord. They are obligated to hold up their end of the agreement. I think that the new owners are also legally obligated to hold up your lease, as they will be purchasing the building and the leases already in place, but I am not 100% sure about this. GL with all of this! That totally sucks.

kristalovesjared · May 2011

I did not have a copy of the LTA of Washington. I am definitely going to read it! I am really going to try and not worry about anything until we're notified what is going to happen, but I also want to be prepared for whatever is going to happen!

Thank you!!!

~Lynchie~ · May 2011

In almost all cases (if not all cases) renters have more rights than property owners in WA. I remember when dh and I were looking into buying some foreclosed houses a few of them had tennants and we were told though the house was foreclosed and going up for auction, if we were the ones to purchase the house we would have to let the tennants stay for the life of their lease, no matter how long it was.

I'm pretty sure you guys would get to stay no matter what, and they cant raise your rent until your lease is up.