If you're a tenant, you probably never thought of that question. Yet landlords are not immune to the foreclosure trend sweeping across the country.
Here's an article on MSNBC.com that tells you just what could happen if this occurs in your life.
Click here to read the whole article.
Fannie Mae this month pledged to change that with its new renter policy starting in January. The plan will allow renters living in foreclosed properties to sign new leases with Fannie while the property is up for sale, or give the tenants money to relocate. Fannie has yet to establish the length of the leases, and the amount of move-out assistance will vary by state and property. Freddie Mac says it will unveil a similar program in a few weeks.
Know your local rights and the foreclosure process--how long do you have to get out? 60 days? 90 days?
Above all, make sure you save for a rainy day (or the day when you could be out of your rental).
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Erica Ramus is Broker/Owner of Realty Executives in Pottsville, PA.
If you're looking for a PROFESSIONAL to represent you in all of your Schuylkill County real estate needs, call Realty Executives at 570-622-6006.
We can meet all your buying / selling needs ... and will exceed your expectations. That's what being an EXECUTIVE is all about
Serving all of Schuylkill County ... Pottsville, Orwigsburg, Schuylkill Haven, Auburn, Pine Grove, Frackville, Minersville, Ashland, Shenandoah, Port Carbon, Palo Alto, St. Clair, Barnesville real estate. Click on the link above to search Pottsville PA homes for sale or any Schuylkill County homes for sale. We have all properties listed for sale in the Schuylkill MLS on our website -- free search!
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Hi Erica - this is an excellent article for tenants who might find themselves in this position. Very informative. thank you.
Erica, it's a sad situation that many people in our area are experiencing. Ultimately, in most cases, very little can be done. I haven't heard of the Fannae and Freddie changes but it makes sense and would be beneficial to both the lender and tenant. Maybe more lenders will board this train soon? Nearly all of the foreclosures in our area are vacant.
When you rent you run the risk of the owner selling or losing the property. It is just part of the deal. I think leases should be honored in a foreclosure at a minimum. Security Deposits should be in the custody of the property manager's trust account so the owner does not walk away from it in a foreclosure.
Robert: In Florida, a lease takes precedent to a sale. If the owner is performing a "regular" sale (anything short of a foreclosure), the lease must be disclosed and the tenants have the right to stay until their lease is up. I believe a foreclosure is an exception to the rule because the mortgage was in place before the lease.
Good timely post! - This will be featured
This has become an everyday issue where we are located. We are experiencing OWNERS themselves who must foreclose on their properties. Because we have a fiduciary agreement with them as their agent, we are forced to use creative strategies to relocate the tenants!
Then... there are situations with potential tenants who have become wary from their experiences of having to get booted out on short notices. One of the first questions asked is.... "Is this rental house in foreclosure?"
For our protection and for the sake of decent paying tenants, we have become VERY SELECTIVE with excepting NEW management services! Regarding the new pledge by Fannie Mae.... our company has submitted a bid for this area, for they will NEED local Property Management Companies - If you could use added business, YOU should too!
I saw your blog posting about foreclosed properties. We offer a great tool to help you in competitive REO listings. www.foreclosurefeedback.com . The Asset manager's can login and see all of the feedback on their REO properties, see what you are doing to market them and print reports to document the need for price reductions. Call in to sign up instead of online and tell them Rick said to give you the first 90 days for free to try it out at 858-270-1055 ext 113. If your competition doesn't offer this, you will definitely have a leg up on them.
Rick
That's a crappy situation. I had a friend just recently have this happen to them. They were shocked... It's not fair, but life goes on. You can't do anything to prevent it even if you represent the landlord. Some people just like to take other people down with them in a blaze of glory.... only without glory?