Not everybody can afford to buy a home that's why there are rental properties and renters or tenants. Rental homes benefit not only the owners or landlords but the renters as well. Apart from those who can't afford to purchase a house, these rental homes are also serve as second homes to professionals temporarily assigned to a new place and to tourists on extended vacations.
However, there's an unforeseen risk in rental homes that poses a big challenge to many renters. This pertains to the subject of foreclosure which scares a lot of tenants. Foreclosure indeed puts a renter in a difficult situation especially for one who has been living in the property for many years, pays his or her rent on time and keeps the rental home in good condition.
According to the county recorder's office, renters are learning that the home they are living in went into foreclosure and sadly, renters only learn about this when they get a notice on their door informing them that they need to move out in just a few days. In worst cases, renters will not likely get back their first and last month's rental payment and the security fee.
It's a fact that some rental homes are maintained by the owners only on a temporary basis. This means that they are renting out their property in an effort to earn extra income while still paying off the mortgage. But should the owner default on his mortgage payments and this continues for several months, there's a possibility that the property can go into foreclosure and the renters are become the innocent victims when this happens.
Know your rights
It's important then that renters know their rights to protect themselves when bad situations occur. Renters rights vary from state to state so be sure to research on this. In some states, city laws prevent tenants from being evicted for the simple reason that the rental property's ownership has changed hands.
Evicting tenants in short notice is also a violation of the renters' rights. However, if they indeed pursue a no fault eviction, they are required to provide a relocation assistance to tenants that amount to several thousands of dollars.
Tenants should know that while the rental property is going through foreclosure, they should still follow the terms in their lease agreement with landlords. If they are asked to move out before the lease expiration, they may sue their landlords for breach of contract.
A good move then for renters is take immediate action upon learning of their landlord's foreclosure. They may request to end their rent without penalty or set an agreeable date with the landlord or the lender or the new owner to move out. But until the foreclosure is final, tenants are required to continue paying their rent. Otherwise, they can face court action from the landlord.
Avoid scams
Be wary also of the so-called foreclosure rescue scammers. These are unscrupulous people and companies who pretend to be helping homeowners and renters facing disclosure but who are actually after the property, equity and money. These rescue scammers exist due to the increasing number of potential victims or people desperate to find solutions to their foreclosure woes, there are lots of money involved and notices of default can easily be tracked in public records.
If you're in this situation, there are some things you can do to avoid being victimized by these rescue scammers. You can keep the communication lines with your mortgage lender open, get all the details concerning the foreclosure procedure, get the assistance of a legitimate foreclosure counseling agency, check your state laws governing foreclosure consultants, stay away from verbal agreements and always make it a point to carefully read and understand all that is written in any document before signing the paper.
It's vital to be vigilant even when renting a home. Know your rights and exercise them when the need arises.
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