Q: Hello,I have been living/renting my home for over 4 years with the understanding of ownership
But now is going to be auctioned In the upcoming months can I stop it and pay for it
You will not be able to stop the foreclosure sale unless you are a title owner of the property. You can, however, buy the property at the auction sale.
Good luck to you.
A: “With the understanding of ownership.” That will have to be clarified. Are you saying you have a rent to own contract with the owner? Your recourse will be contractual, and it will be against the owner/landlord, assuming you paid a premium above fair market rental value in order to secure a fixed option to buy. You might declare the agreement breached and stop paying. Your remedies will depend on the terms of the agreement. The foreclosing lender has no contractual obligations to you, and is entitled to pursue a foreclosure sale so long as their loan remains unpaid and in arrears. You may have post-foreclosure tenant rights if your lease term is not yet expired, but if you are month-to-month, then you will only be subject to the 90 day notice to vacate by the new owner after the sale is ratified by the court. Ratification can take several months. You may wish to review your options for continuing paying the amount of rent due under your agreement, since your option to buy or agreement to own is no longer likely enforceable against a new owner following foreclosure. After the gavel falls on the foreclosure, equitable ownership transfers to the successful bidder, while actual legal title does not transfer until the court ratifies the sale. So, you may no longer owe rent to the landlord whose interest was foreclosed, but to the successful bidder at auction. Most purchasers at foreclosure do not expect to receive rent—they just want you out so they can take possession as soon as possible. However, your landlord may file bankruptcy at the last minute, or refinance the mortgage debt, and manage to forestall or cancel the foreclosure, so do not take any unilateral actions without getting legal advice. As suggested, assuming you have the cash or can qualify for financing, you can bid at the foreclosure sale.
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