Browse > Home / Housing / Renters evicted in wave of foreclosures

Renters evicted in wave of foreclosures

August 15, 2008

The news is filled these days with stories about the housing foreclosures. I believe a lot of us think about the homeowners, but there are some other casualties in this situation.

One group of people who are facing eviction because of foreclosure is renters. It’s common for landlords to ask potential renters for their financial background and to check credit reports. It seems less common for renters to ask potential landlords about their financial stability and to make sure the landlord is current on his or her mortgage for the rental property.

As a result, tenants who have diligently paid their rent each month are learning too late that the property owner has defaulted on their home loan. The tenants must then find a new place to live.

There was an extreme example of this recent reported in the

Las Vegas Sun. A home owner defaulted on his rental property. Without warning, the residents of the home were told by sheriff’s deputies they had 24 hours to clear out of the property.

The catch? The tenants operated a nursing-home facility. Most of the people being forced to vacate were bed ridden and had to be removed by ambulance.

The business owners had no idea the owner wasn’t paying his mortgage. This situation is an extreme example, but renters being evicted because of foreclosure is happening quite frequently.

If you are considering renting, what can you do to protect yourself?

Take some time to check out your potential landlord before you sign a lease. Research the rights of renters in your particular state and make sure you understand those rights. The laws which protect renters vary from state to state. You can find information about tenants’ rights through the U.S. Department of Housing and Urban Development at www.hud.gov.

In a story on MSNBC, real estate attorney Kevin Jursinski recommended renters ask their potential landlords some difficult questions, such as if they are current on their mortgage. If they say “yes,” ask to see their paperwork to prove it.

Another recommendation from Jursinski is to check with your county’s property tax and clerk of courts offices to see if the landlord is actually the owner of the property and if there have been any lawsuits filed against the owner.

Another good step is to check with the homeowner’s or condo association, if applicable, to see if the property owner is up to date on all of their dues.

Written by admin · Filed Under Housing 

Comments

Terms of Service
1. All comments are subject to review by Advantage Credit Counseling Service prior to their publication on this site. Advantage CCS reserves the right to decline publication to any post it deems in violation of the Terms of Service.
2. No potentially libelous or damaging statements will be posted. This includes negative and / or unsubstantiated allegations against Advantage CCS and its competitors.
3. No comments including obscene, explicit or racist language will be posted.
4. Comments containing personal attacks, insults or threats will not be posted.
5. Comments not related to matters of personal finance, budgeting, credit counseling, housing counseling, bankruptcy and other related financial issues will not be posted.
6. Anyone who posts using another person’s identity will be barred from posting in the future.