After being a homeowner for almost a decade I found my circumstance last year putting me back into the role of tenant. I still fall into the role of landlord too, but the home I live in now I am a tenant.

In April of this year I received a certified letter informing me that the home I am renting is in foreclosure. My initial feeling was anger towards the owners, wondering what they have been doing with my rent. My next feeling was sadness because my plan was to slowly work through the process of finding a home to buy or better yet build one (or should I say have one built). Now I had to worry about where I and my family would be living in a few months. How would I explain to my 8 year old daughter why we have to move after living in this home for only a year?

My experience working in collections and my work educating youth in personal finance left me believing there would be no alternative but for the home to be sold in August. Still, we are in a strange market right now and the norm seems to changing constantly. The homeowners have assured me time and time again that they are working with the bank on a modification and the home will be brought out of foreclosure and oh yes…keep paying that rent!

After receiving the notice of foreclosure I saw no reason why I should pay them the rent. Still, after a conversation from the landlords and some research on my part I found that as long as they still own the home I still am obligated to pay the rent.

I just happened to find a great website for tenants in foreclosure http://foreclosurehelp.oregon.gov/DCBS/foreclosurehelp/information_for_renters.shtml because I was in a meeting where the Department of Consumer and Business Services was presenting on their resources for consumers. My worry is for those who don’t work in the industry as I do and do not have the resources or time to dedicate to the research the issue. How are they suppose to find the resources they need to help them through this process?

So what are your thoughts? Is it right that as a tenant you are still obligated to pay rent to a landlord who is not paying the mortgage?

My plan is to break this series into several posts as I work through this process. What I’ve come to find out is that this is really is a very confusing and emotional process for someone to have to go through. My hope is that my sharing what I’ve learned will help others faced with a similar situation.

In future posts I will discuss the signs leading up to this, the security deposit and others topics as they arise with my situation.