The Apartment Is In Trouble
Mike is worried about what will happen to him since his apartment complex is going into foreclosure.
QUESTION: Mike is renting an apartment, and the 148-unit complex is in foreclosure. An auction will happen soon for the property and his lawyer says he has to wait until after the auction to do anything. What are his options?
ANSWER: I wouldn’t worry about it; you’ll just have a new owner tomorrow. It will either be a bank or an investor who bids it in. They don’t have to honor your lease but they will, because they don’t want 148 empty apartments. They want the complex to continue to produce income. They won’t set you in the street on 24 hours notice. They probably want to keep it together and resell it as an apartment complex. If they want you out, they would give you at least 30 days.
I wouldn’t pay my next month’s rent until I had some clarification on that. Once it’s solved, you can get a new lease signed, because the old one will be wiped out in the foreclosure. They will probably be easy to work with because they don’t want 148 empty units. If the bank wants to resell it as a complex, it’s much more valuable full than empty. I think you have lots of time there.