When your landlord’s in trouble, you could be too
Tips for renters dealing with a foreclosed property:
Q: How does a tenant know if a landlord is being foreclosed on?
A: Landlords are not required to notify tenants. The bank must post a notice on the property within 15 days of advertising a foreclosure sheriff’s sale in the local newspaper. The county can verify whether a home has been sold at a sheriff’s sale because that is public information.
Q: How is a tenant affected when a landlord goes through mortgage foreclosure?
A: Tenants usually must move; however, the foreclosure process can take months up to six months after the home is sold at sheriff’s sale to complete, and the tenant can typically stay until the end.
Q: What happens to a tenant’s lease if the property is in foreclosure?
A: Typically the lease is valid until the foreclosure redemption period is over – and when that happens, the new owner, which is usually the bank, doesn’t have to honor the lease. Lease usually is valid until foreclosure procedure ends.
Q: When does a tenant have to move?
A: After the redemption period ends. If the tenant gets an eviction notice, the tenant generally has a month to leave before court proceedings begin. If the tenant moves earlier, there should be no penalty because the landlord defaulted on the lease.
Q: Does a tenant still pay rent during foreclosure?
A: Yes, because the landlord still owns the property until the end of the redemption period.
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When your landlord’s in trouble, you could be too…
Do you know that in case your landlord has any problems you may have them too? Whatever the case it would be useful for you to read some tips for renters dealing with a foreclosed property….
I had this happen to me last year. I rented a condo in August, and on December 5th my landlord came by to tell me the place was going into foreclosure. She told me that she was in trouble when she rented me the place, but thought she would be able to get caught up. A clue that the place you’re living in may be going into foreclosure is to watch the mailbox for unsolicited mail from moving companies. I got a LOT of it. That information is public knowledge and that’s how they get a lot of their business. I’ve been told that a lot of landlord’s don’t tell their tenants their in trouble. So if you start getting unsolicited mail from movers, take that as a sign that you will be moving soon.