Renter Obligations when Mortgage is NOT Being Paid

A common question I get from folks who have called my office recently is whether a renter must continue to pay rent if the landlord is not paying his/her mortgage.

Actual Question: "Am I obligated to pay rent if the homeowner isn't paying the mortgage? The mortgage has not been paid since December. The management company is aware and still requires the [rent] to be paid."

My Answer:

Yes, you are still obliged to pay rent. If you do not, then you can be evicted. If you have a bona fide written lease then even if the property is foreclosed upon your lease will still be valid against the bank or the new owner until the end of the existing lease term unless the property is purchased by an owner occupant. In that case the new owner occupant can terminate your lease so long as the new owner occupant gives you 90 days notice.

Disclaimer: The above is intended as general information and your specific situation may be different so it is always important to speak with a lawyer about your specific situation.

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MarkWeinsteinLaw.com