In the good old USA: we had "change" And the banks can behave differently.
In theory that is true, the new receiver must honor old contracts. But, I know first hand of situations where the "bank" that holds the note starts evection notices. Banks are not the most caring institutions or even the smartest guys on the golf course.
One friend of mine moved into a newly built house (in a development) and put a deposit to buy the house. Moved in with a 6 month lease with the option to buy as soon as every duck was in a row. The development bankrupted. Now, one would think the bank would want to sell a house (in this market) and honor a contract. Instead, the sheriff shows up with orders to vacate. The bank in the USA is getting (long story) 8% NOT to make loans and sit on houses from it's uncle sam. That explained a lot. In a nutshell, banks can't loose.
I have looked at some of my contracts and discussed "backup" plans for not getting paid as a consulting programmer and other things.
In the USA, it is my "opinion" (not to be confused wiht advice) based on first hand experiences of first-persons: I urge everyone to buy a $30 kit on how to file a lean in the county courthouse on property. If someone does not pay (and they can be a renter) file on the building the same way a plumber or building contractor will file. In theory, by working for that company, you increased the value of that property.
It may be months or years later, but at some point, there is usually a call to come pick up a check.
Had to get that out of the way. I just got back from the court-house looking up records to prepare for a hearing (on a renter) on the first of the month.
These are tough times and it is too bad that consultants must have to deal with such unplesant things.
Actually, there are some statements here that are completely wrong, and it has nothing to do with "change" as the rules have been in place regarding mortgages much longer than our current President has been in office.
Bankruptcy in this situation is better for you than if he were to let the property go into Foreclosure. Mortgage contracts trump ALL lease or renter contracts, which is why we are seeing, and have been for the last few years, many people being forced out of homes they are renting due to deadbeat landlords who let the property go without telling their renters. Theoretically, they could sue the landlord for breaking the contract, but if the landlord can't pay their mortgage, what can they get out of it? It's a messy situation that DEFINITELY needs change, but it's been this way for a century now.
In bankruptcy, it depends on what he claims with the bankruptcy and what is written into the lease. He could choose to reaffirm the mortgage, which would be the smart thing for him to do since he has a tenant who is paying, and keep the property. This is usually the common course of action. This would not affect you in any way and all terms of the lease for both you and the landlord would stay in place. If he chooses to reject the lease and not keep the property, then as a tenant, you also have the same options. You can:
1. If you, as a tenant, choose to reject the lease, you can file a claim for damages in the bankruptcy court.
2. If you, as a tenant, choose to continue the lease after the landlord rejects it, you retain the right to keep the property under the terms of the lease, but the landlord is released from any lease obligations he had, such as maintenance, any bills he was paying, etc... The bankruptcy laws allow the tenant to reduce the lease payment to cover costs of obligations rejected by the landlord.
They cannot throw you out or evict you unless you break the lease if you choose to stay, but choosing to stay could be more a burden then it's worth sometimes.
Every state/country has different laws and the laws where you live may be different. The best thing for you to do would be consult a bankruptcy attorney who specializes in commercial property matters. Members on a forum cannot really provide legal advice, and neither can I. These are just my opinions in the matter. (Legal disclaimer)
Anyway, this thread is almost a year old, why dig it back up?