Legal Question in Real Estate Law in District of Columbia

If a house is in or going into foreclosure is an owner, allowed to rent that property out? Even though he is not making mortgage payments anymore.

Asked on 6/16/11, 5:45 am

1 Answer from Attorneys

Phillip M. Cook Cook Legal Services, LLC

Until the property is actually foreclosed (as opposed to going through the process of foreclosure), the property owner is still the legal owner of the land. As such, he can do with it what he wants. If he can find a buyer, he can sell it. If he can find a renter, he can rent it. Is it morally correct for a landlord to do this? NO. Most likely, the landlord will collect your rent and never pay his mortgage. The renter ends up with the bank knocking on the door with an eviction notice.

The only saving grace for renters in this situation is federal legislation passed in 2009 by the Obama Administration, which gives tenants a little bit of time to move out once the property has been foreclosed. Google the law called "Protecting Tenants at Foreclosure Act of 2009" and read up.

Best of luck.******The above is for informational purposes only and does not create an attorney-client privilege.******

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Answered on 6/16/11, 5:58 am

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