Any Real Estate/Renters Law Help?

[metallimonster]

So we just go notice on our door to call a new real estate company.  Turns out the company that owned my building let it forclose and Frannie Mae bought it last Friday (May 4th). I paid rent May 5th for the month of may.  They do not own the property so why should I pay right?

Do I have any recourse to get my rent back and also my deposit?

[hbliam]

You need State specific info but to be clear..the new company is asking you to pay rent? Do they now manage the property for Fannie Mae? I would think...If they do and you want to stay you pay. If you don't want to stay you don't pay.

[DRKWNG]

Get in touch with Ducatiz.  That's right up his alley.

[metallimonster]

So now i'm in sort of a holding patern.  My old landord is contesting the forclosure citing that they paid the mortgage.  It did get bought at a sheriffs sale but I'm waiting to hear from both companies on what to do. It's currently being handled by an asset management company.

I'll be pretty mad if it does go to Frannie Mae and I paid rent for May to a company that didn't own the property and if I can't get my deposit back.

This is in OH and no the new company is not asking me to pay in fact they told me not to pay the old company. I'll happily pay the whatever new company buys it from Frannie Mae I just don't want to pay the old company if they don't own it.  Also I'm worried about our rent going up when/if it gets bought by a new company.

[hbliam]

Open another bank account and "pay" your rent into that account until it's all worked out. Your deposit should be assumed by the new owner.

[AdmiralKit]

http://www.ohiolandlordtenant.com/revised.html

IANAL and regardless this should not be considered legal advice, but I have the Google and it shares its knowledge readily.  You're due back your security deposit from your old landlord should he fail to successfully contest the foreclosure.  However, the landlord is supposed to pay that security deposit to the mortgage holder, who is supposed to return it to you at the end of the term of your lease.  The federal "Protecting Tenants at Foreclosure" act dictates that the premises are supposed to remain in your control for the duration of the lease (assuming you're paying rent), unless the foreclosing agent intends to personally occupy the premises (unlikely), at which point you still have 90 days to relocate.   This means that the mortgage company is now your new landlord and that they've inherited the lease you signed with the old landlord.  While the new company is telling you not to pay rent, I would follow hbliam's advice and put the money in a different savings account.  Non-payment of the rent constitutes a breach of the lease, which gives them grounds to evict you according to Ohio law.  Saving the money will also give you security deposit and first month's rent in case you are forced to move.  If you want to stay, consider also sending the foreclosing company or their agent (whoever told you not to pay rent) a letter via certified mail (and saving a copy for your records) indicating that as per their instructions you are not paying rent, but are still planning on fulfilling the full term of your lease and will have their rent money available if/when they request it.  Whether or not they like it, they're your new landlord for the duration of your lease.  Might want to call them as well, and if possible record the call asking them to clarify their position so you have a record of that.  Ohio appears to be a one party consent state, which means that only one person needs to legally consent to the call being recorded for it to be legal.  Make sure whomever you speak with identifies who they are and their position (and that you capture that information) in case any legal proceedings are required later.

Depending on how things shake out, if your landlord loses his appeal of the foreclosure I would think you could take him to small claims court to get your rent refunded.  You paid him for a property that was not under his control (as the foreclosure took place a day before you paid your rent), and thus he has no legal claim to that money.  Keep an eye on statute of limitations here, too... while the legal proceedings he's involved with can take a while, you'll definitely lose your case if it takes 10 years for his to settle out.