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Landlord didnt pay taxes now bank raised rent what do i do?!?

  • Ok, so me and my husband rent a house from his dad. We have lived here for a little over 2 years, paying the rent/mortgage directly to the bank on time every month. I went to go pay today and they told me the amount due has been raised by $320!!!! I asked why, they would not tell me. I called my father-in-law, and he said its because he could not pay the taxes due on the house this year, so the bank paid them for him, in turn raising the mortgage amount. And he expects us to pay the raised amount because he neglected to pay the taxes on the house he owns!! He said once he gets his annuity check for retirement at the end of the summer (maybe) he will pay the taxes and the mortgage will go back down. However, i do not think its fair we pay the raised amount in the meantime because he failed to pay his taxes. I dont know what to do. If i keep paying the same amount I have been, can they put the house in foreclosure even though it is getting paid on? how much time would i have until that happens? and if thats the inevitable outcome, should i even bother to pay until he pays the taxes?? Please help and give me your opinions, I just dont know what to do. We certainly can't afford the sudden added expense of another $300/month, especially with me being due in a cp weeks....

  • Answer:

    As posted the lender could care less about the deal between you an your father in law, he is in breach of the loan agreement by not paying taxes, as such, they have the legal right to protect their interest in the property an require extra monies to cover the taxes, the bank is in the superior position failure to pay the extra can result in a default in loan terms opening up the avenue for the bank to reclaim the property, of course you can sue the father in law for the difference

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This is what happens when you do business with family. You should have been paying rent to his dad, not paying on his behalf to his lender.

rotflol

Unfortunately, the bank doesn't really care about the arrangement with your father in law. They only care about getting paid in full. And yes, if the payments are the old amount, eventually the loan will deteriorate and the house will go to foreclosure. When and how fast depends on your state. Georgia is lightening fast. California takes a while. If you have a lease with FIL, you could (in theory) sue him in small claims court for an out of lease rent increase, but that would hurt family relations. The possible ways for this to work out are: (1) FIL pays his taxes (2) you + husband buy him out and get a mortgage on your own (3) You all pay the higher rent and get reimbursed from FIL.

Lauren F

if you have a lease or and lease option agreement in writing then you could possibly sue your FIL for breach of contract... otherwise, its decision time... stay and pay what the bank wants, or pack up and move., and leave FIL to figure out his own affairs... If I were you I would be demanding that your FIL meet you at the bank with the bank manager, and see if you can renegotiate the loan with the bank and remove your father from the deal entirely... It may cost you a few thousand for his interest, but, it is worth a shot.

overnightdeejay

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