what happens to tenants?

[gowiththeflo]

can anyone tell me what happens to the tenants I have in a rental property that I imagine the trustee will try to sell as it has about $40,000 of equity in it?

[AngelinaCatHub]

Cannot predict the future, and not clairvoyant, but most likely they will be allowed to stay and pay rent to the mortgage company. It is safer than having a house unoccupied as vandalism often happens. 'Hub

[whipster1]

Depends on the trustee, sometimes they want to keep the cash flow going while they sell the property, then the tenants can deal with whoever buys it.

[gowiththeflo]

can they sue me?? they are one year into a three year lease to own agreement?

[keepmine]

can they sue me?? they are one year into a three year lease to own agreement?

Your attorney should list them as creditors. They would be contingent/unliquidated liabilities.

[AngelinaCatHub]

can they sue me?? they are one year into a three year lease to own agreement?

I doubt that they can. You did not make a fraudulent deal. The bk was not in the offing. Things change. You can allow them out of the lease to own, or suggest that they attempt the sale with the mortgage holder. You would not have to give back or apply payment to their equity as the mortgage holder would probably be pleased to off load the property at a lessor rate than you even agreed to. I don't think you need to worry. Stand hard on the facts. Work with them, and collect rent as you can. You STILL own the place until it is foreclosed. 'Hub