Renters have some time during foreclosure

Q. My husband, myself and our two children rent a small single-family home. We were just served with a Complaint for Foreclosure. The owners of the house are also named in the lawsuit.

We have tried to speak to the owners regarding this but they just keep telling us not to worry and that they will take care of this. The owners have not always been totally upfront with us so we would like to find out what is going on. We tried to contact the lawyers that represent the mortgage company but they said they cannot talk to us.

We are scared to death that someone is going to show up at the front door and demand that we leave. Our kids are in school here and there is no way we could find another place to live on short notice in this school district. My kids love their school and it would kill me to have to move them.

What do you think we should do? Why were we named in the lawsuit? Will this affect our credit? How can we find out what is going on with this?

A. You were named in the lawsuit solely as tenants in possession. The mortgage company wants to insure that they can obtain possession of the property in the event they are awarded a Judgment for Foreclosure and the property is not redeemed by the owners. By naming you in the complaint, the court retains jurisdiction over you and can terminate your interests in the property, those interests being your right to lease and occupy the home. This will not affect your credit.

Unfortunately, your rights as tenants are virtually nonexistent. You are almost fully dependent on the actions of the owners. If they resolve their problems, you can stay. If they cannot resolve their problems, eventually, you will probably be required to leave.

The good news is that nothing is going to happen immediately and you can stop worrying for now about someone showing up at the front door. As you were just served, we can presume the owners were also either recently served or have yet to be served. Before the mortgage company could forcibly take possession of the property, they must wait for the longer of three months from the date of a Judgment for Foreclosure or seven months from the date the owners were served.

As to obtaining information regarding the foreclosure, you could travel to the courthouse where the complaint was filed and review the court file. However, most of the information you need was handed to you when you were served. Look at the paragraph that states how much is owed the mortgage company.

If the owners are many months behind, and there is little or no equity in the property, you can probably presume that ultimately, the mortgage company is going to end up with the property, either through an agreement with the owner or through a court order. If the owners have a significant amount of equity in the property, one could presume they will either work something out with the mortgage company or sell the property.

Presuming the owners continue to keep you in the dark about their situation, I would immediately start looking for a new place to live. The earlier you start, the more likely you will find a home that will cause the least disruption to your family. I might also suggest contacting a real estate attorney to further discuss your rights.

Q. I have my home listed by owner. Last weekend, a Realtor stopped by and said she had a client that she thought may be interested in my home. She stated she would like to bring the client by, but first, she wanted me to sign an agreement stating that if her client bought my house, I would pay her a commission of 2.5 percent of the sales price.

I asked her if I did not sign the agreement, would she bring the client by anyway. She did not answer me but I certainly got the feeling the answer was no. I told her I would not sign the agreement, she left and I haven't seen her since.

My question is: Is this legal? She left a card and I am tempted to file a complaint against her. What do you think?

A. I do not proclaim to be fully versed in the rules and regulations of the realty profession, however, it seems to me a Realtor has the right to show his or her client any property that she feels meets her clients needs. It would appear when you refused to agree to pay a commission, the Realtor determined your property did not meet her client's needs. Probably a coincidence.

Keep in mind that the Realtor may very well have shown her client numerous properties at that point and invested many hours with that client. It is not unreasonable for the Realtor to hope to be compensated for her time and effort. Rather than file a complaint, I might suggest calling the Realtor and attempt to negotiate a commission that you both can live with.