Rent Payment to Landlord or Court Appointed Receiver?

[UnderTheHill]

Hello,

I was given notice yesterday that the apartment building I am residing, the landlord is going through bankruptcy, and the building is going through commercial foreclosure. I received a letter from a lawyer that he is now the "Receiver" on behalf of the mortgage lender and that all rent should be paid to "Receiver" instead of the landlord.

From what I can see from the court documents, a Commercial Foreclosure was filed on June 18, 2009 by the mortgage lender against various parties, including the landlord. Also on this date, the court appointed the "Receiver" as receiver of rents, issues and profits, etc... There was a Bankruptcy Court Stay, but that has now been lifted as of July 16, 2010.

Question is, should I go ahead and pay the rent to the "Receiver" or should I continue to pay the rent to the landlord? If I make my rent payment to the "Receiver", does the landlord have any recourse against me, or vice-versa if I make payment to the landlord instead of the "Receiver"?

Also, do I have any recourse against the realtor for listing an apartment that is going through bankruptcy/foreclosure without notifying the potential tenant because I signed my lease on back on February 2010, with the lease starting on March 2010.

Thank you.

[TenantNet]

First, I'd recommend that the building tenants hold a meeting, form a tenants association, appoint representatives and collectively seek legal advice. You're seeing just one step in the process and many things can happen.

As for receiver, it's possible that it might be entirely legit, but caution is advised. You need to make sure that paying to the receiver will not result in the landlord coming after you for rent he didn't receive ... or the reverse situation. If there is any question, I would withhold all rent (keeping it in escrow) pending clarification.

Do some research on "Notice of Attornment" - here's one link:
http://forms.lawguru.com/notice-of-attornment_p.html

A bank or mortgage holder will be acting as landlord, although they are not professional building managers and their goal is to off-load the building no matter what inconvenience it might cause tenants. That's why you need to be organized as often in situations like this they try to empty the building.

[Landlord's Boy]

I was given notice yesterday that the apartment building I am residing, the landlord is going through bankruptcy, and the building is going through commercial foreclosure. I received a letter from a lawyer that he is now the "Receiver" on behalf of the mortgage lender and that all rent should be paid to "Receiver" instead of the landlord.

Did the letter arrive registered or certified?

[UnderTheHill]

Did the letter arrive registered or certified?

Sent to me via email with signatures, including:
- Supreme Court of the State of New York County of Kings Notice To Attorn To Receiver
- United States Bankruptcy Court Eastern District of New York Chapter 11 Order Vacating The Automatic Stay
- Supreme Court of the State of New York County of Kings Commercial Foreclosure Order Appointing Receiver
- Letter from Receiver of the Mortgage Lender regarding payment of all rents

I checked with the NY Bar and both lawyers indicated as Receiver are in good standing, one member since 1996, other member since 1967, with no claims against them. I also called the Supreme Court Civil Housing unit, the case is active with the judge, with no further updates since the Vacate of the Automatic Stay was executed.

I also called both lawyers for the landlord and left them messages, neither have called back.

Finally, I went to a local branch of the mortgage lender, waiting to hear from their business real estate group with contact from their legal department about the situation.

[UnderTheHill]

Did the letter arrive registered or certified?

Also, the Receiver lawyer was in the building yesterday, knocking on doors of each tenant, hence how he obtained my information.

[283910]

I'm in this same situation--in fact, Under, I'd reckon we're in the same building.

This case has just had another wrinkle, where now the landlord, his previous bankruptcy stay overturned, has field for another one in a different state.

PM me and let's chat.