What Do I Do If My Rental Building Is Being Foreclosed On?
no fee rental

Rent Stabilized tenant have nothing to fear from their building's foreclosure. That's why it pays fo find a no fee rental of a rent stabilized apartment.

First, you panic. Then you read this post and relax – a bit. This exact issue was tackled by Jay Romano on 3/1/12 in the Q & A Column in the Sunday New York Times. Here’s how he handled the question:

Q We just found out that our rental building is going into foreclosure because of our landlord’s nonpayment of his mortgage. I am concerned about what happens now. Are we going to be evicted? What are the short- and long-term consequences for the renters? To whom do we pay the next month’s rent?

A “The impact of a foreclosure by the building owner’s lender on residential tenants will depend on the status of the tenants,” said Howard Wenig, a Manhattan lawyer who represents property owners. If the tenants are rent-regulated, the lender’s foreclosure will not affect them. Their rent-regulated status insulates them from having their rights terminated.

However, if the tenants pay free-market rents, the lender has the right to name them as defendants in its foreclosure action, and their tenancies are subject to termination after a foreclosure sale. “During the foreclosure action and until a foreclosure sale is held, however, all leases remain in full force and effect,” Mr. Wenig said.

He noted that even in the case of free-market tenants, the lender may choose to let them stay in their apartments, unaffected by the foreclosure.

Tenants should continue to pay rent — to the owner, or to a court-appointed receiver if they are served with an order from the court advising that a receiver has been appointed. If a tenant is served with a complaint in the foreclosure action, or a copy of an order appointing a receiver, he or she should hire a lawyer to get advice on the best course of action.

I couldn’t have said it better myself. But really, isn’t this just another good reason to only rent a no fee rental in New York from a reputable company like RDNY.com? I think so.

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Written by Lorenzo

Lorenzo has been hanging around the RDNY.com office for the past 20 years, and, in the process, has become the president of RDNY.com, Rent-Direct.com, and Acmelistings.com. His mission is to build RDNY.com into New York's largest no fee apartment rental service. Before RDNY.com, Lorenzo was a Regional Sales Manager for Time Equities, Inc., one of New York's largest converters of rental buildings to coops and condos. Lorenzo was once a part owner of Swift & Watson Real Estate in NYC's Greenwich Village.

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