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Re: foreclosure with pending overcharge case

Posted by TenantNet on December 16, 1996 at 03:10:14:

In Reply to: foreclosure with pending overcharge case posted by Margaret and Joe on December 15, 1996 at 00:33:04:

: We filed a rent overcharge complaint a little over a year ago. The landlord
: stopped paying mortgage, taxes, etc. in May of this year and we just
: received notice of foreclosure. We, as John Doe tenants are named in the
: complaint. What does the foreclosure mean in terms of keeping our apartment
: at current rents, or at all? What happens when the overcharge complaint is
: finally ruled on? Anyone out there familiar with this kind of situation? We
: would appreciate knowledgable info. Thanks.

Your rights as a tenant continue even under foreclosure -- where I assume
the court appoints a receiver until the building is auctioned. I would
consult a lawyer for details as you must make sure you are paying rent
to the right party. Usually a Notice of Attornment is necessary to be
served on you before you should start paying rent to the receiver (this is
to protect you in case the old landlord claims you aren't paying rent and
tried to take you to court). As for the overcharge complaint -- with
landlord-run DHCR your rights are tenuous anyway, but there are cases
where a new landlord who purchases a building as a result of a judicial
sale might not have complete liability. I would do a search on our
Housing Court Decisions and DHCR Decisions databases. (in addition
to consulting with an attorney who knows this stuff backwards and

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