foreclosure process? timeline? for renter

[questionquestion]

Hi! I'm new here, just stumbled upon this site earlier and was very interested in some of the information available. I was wondering some quick questions.

Quick version: Is their a good behavior policy on foreclosures? and How much time and notice will a renter have on eviction of the property?

Details: A friend of mine is renting a house, and that house is going into foreclosure. It's his families' house and their mortgage; he is simply a renter. The family told him that they were making a deal with the loan company (Chase) that if they were cooperative and nice and cordial about the foreclosure than Chase wouldn't damage their credit score. Otherwise if the family was rude & nasty about it than Chase could dock their credit score 300 points on a whim. Is this true; or a tall tale they've just told him? I've never heard of a "good behavior" policy in defaulting on a loan before. I was under the assumption that the credit score was a little more scientific than based on someone's personality and niceness. Am I wrong?
The other main reason I'm asking is about the actual process. He's been living in the house for more than a year. He's a young man, with little money to move, and needed to know how much time he had. The process is somewhere around the 90 day mark, he was told it's been 90 days since they last paid the mortgage, and this past Tuesday (June 30) was the day that the "bank took over" according to his parents, but no more information was given. What exactly does this mean? How long does he have until he needs to move? When should he be looking for an apartment, etc. to go to? Will they have to go through the formalities of an eviction notice?? Or will he just go home one day to find the house doors locked? And will he be able to retrieve his stuff if that happened? He tried asking his parents and they won't give him any answers. I was hoping someone would know at least some sort of a timeline. Should he be panicked today, or next month? Also, will they send a notice to the actual house in foreclosure, or the billing address of the owners of the house? Because his parents haven't really kept him in the loop as to the progress of the process, and he's trying to figure out where the information will be sent to. Thank you so much for all of your help! Any information at all would be greatly appreciated. I just need to help him figure out whether he's going to be home-less tomorrow. BTW He's in Virginia. THANKS A BUNCH!

[Moe Bedard]

Hello and thanks fro joing the forum!

I had a keen interest in this topice because I was a teneant in a recently foreclosed home. I have written on the subject quite a few times on my blog. I'll post some info here and some links that should help you.

Renters whose states follow the "first in time, first in right" rule, where a lease can be wiped out by a foreclosure if the mortgage was recorded before the lease, will not be able to convince a court to change that rule. But tenants who learn that their new landlord is a bank can at least lessen the financial consequences by suing the former owner.

Here's how it works.

After signing a lease, the landlord is legally bound to deliver the rental for the entire lease term. In legalese, this duty is known as the "covenant of quiet enjoyment." A landlord who defaults on a mortgage, which sets in motion the loss of the lease, violates this covenant, and the tenant can sue for the damages it causes.
Small claims court is a perfect place to bring such a lawsuit. The tenant can sue for moving and apartment-searching costs, application fees, and the difference, if any, between the new rent for a comparable rental and the rent under the old lease. Though the former owner is probably not flush with money, these cases won't demand very much, and the judgment and award will stay on the books for many years. A persistent tenant can probably collect what's owed eventually.

Tenants’ Rights When the Homeowner Is Foreclosed | Loan Modification & Home Loan News

What Are Your Rights If There Is Indeed a Foreclosure?

Unfortunately, each state has a different treatment of the tenant in case the foreclosure for a property has been completed. You may still be permitted to stay for a period of time ranging from only a few days to 60 days. If the term of the lease has not yet expired, you may be able to file a lawsuit against the landlord at a Small Claims Court. You will have to consult your attorney if this is possible.

If the lawsuit is possible, you may be able to recover some of the costs that you will incur when moving to another place. These may include the costs involved in locating a new home, the fee that you will have to pay for the moving services, the loss of the security deposit, the money required to make a security deposit for the new home, and the additional cost if the new rent is higher. Always check with your landlord if he might be willing to return the security deposit to you because some states make the rental agreement null and void.

You Might be Able to Receive Some Money to Pay the New Rent for the First Month!

I must confess: I am a renter and my landlord is being foreclosed on | Loan Modification & Home Loan News

Predatory Renting | Loan Modification & Home Loan News

I hope this helps.

[patstrat47]

Hi I am new here..I live in Philadelphia pa and am in a rented house.. and I too have this problem.

just found out that the house is going into foreclosure in Nov 2009 ..Now I called the landlord and when i informed them of this tenant letter that was sent to my house she sounded frustrated.. now i cant get comfortable knowing this is going on

the owner told her that he was working on a loan mod with GMAC and has been doing so since Feb 2009 saying that one of the persons quit after a couple of months and they are getting another person to work on his case. Now coming from a house that we have lived in for 26 years to this is disheartening

I have just moved in the house July 1 2009 smelled gas from the stove had the gas company come out for that ( they got a new stove) there is no bannister on the steps going upstairs ... and now we find out about this foreclosure ... We are letting the landlord know that we will be putting the rent in escrow because we want to see his loan mod papers... this is the first time renting for us... are we doing the right thing?