In a worse case scenario, if your landlord’s property, your home goes in to foreclosure, lots of nasty financial things might come your way.
You may end up losing your security deposit, and your last month's rent, and you may be forced to evacuate the apartment with very little notice, unless you are careful to take the right steps. Therefore let the renter beware, and research the status of the space he/she/they are about to occupy. Is the landlord solvent? Are the mortgage payments up to date? Have the property taxes been paid? These questions can be answered more easily than a renter may think. (Kiplinger.com)
In the meantime, watch and keep on your toes. If it looks like your landlord is going under. Make sure you know what your rights are and be prepared. Housing advocates say, at this moment, much of the rental foreclosure problems are concentrated in the inner cities of the nation, mainly in areas with high concentrations of ethnic minorities, people of color and immigrants—in short, the most vulnerable economic population in the nation.
In Cincinnati, the same tune is being played. Apartment complexes being auctioned off in foreclosure fire sales, renters’ lives turned upside down. A local reporter interviewed an Ohio attorney and discovered the problem is massive.
Legal Aid Society lawyer Nick DiNardo says, “It’s a huge and growing problem. We’re getting more calls from renters about foreclosure than ever before, several a week – dozens in a month.” (WCPO television)
A financial industry news letter reports that renters are left out in the cold on several fronts. They may not know the landlord is in financial trouble, or that the property is going into foreclosure. They may not be prepared to move if evicted by the bank or new owners.
Even if the renter's lease isn't up for another six months, renters may get only 30 to 60 days to vacate the premises once evicted, because in most states a foreclosure makes a lease obsolete. Because the lease signed by the renter is no longer in effect, the lender or new owner also isn't obligated to perform any maintenance tasks or continue any other amenities the renter may be used to, with the exception of keeping on basic utilities such as electricity and water. (“Foreclosures Can Leave You Homeless”, bankrate.com)
Tamara E. Holmes, the author of the bankrate.com piece notes that each state has separate laws on foreclosure, eviction and renters rights. She recommends that renters:
Know your state and local laws. "There are many local rent-protection ordinances that are in place that protect renters," says Sullivan. Some jurisdictions, for example, may require that renters have more time to vacate the premises, while others may have specific regulations regarding the foreclosure process. For example, in Connecticut, unless you are named as a defendant in a foreclosure suit, a lender can't evict you after the foreclosure. You can access information pertaining to your state's rental ordinances through the HUD Web site. If you don't want to sort through all of the legalese, contact a housing counseling office in your state, also accessible through HUD. (Ibid)
What is the nation coming to when the housing market is so unstable, when the housing and apartment industry are so rotten that people are literally too afraid to sign a new lease, fearful of another forclosure-based eviction?
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