|
|
|
|
|
| |||||||||||
If your landlord loses the home you are renting through foreclosure you may be forced to pack up and move within 30 days. That's bad enough, but what about your security deposit and any prepaid rent? The reason for the foreclosure usually means the property owner is broke and your chance of getting back any money is slim to none. Your only recourse after moving would be to file an action in small claims court. You should easily win a judgment for the amount that is owed to you. However, there is little chance of you collecting money anytime soon. The good news is that you can record your judgment and at some time in the future, when the landlord tries to buy or sell other property your recorded judgment will be paid off. You are in much better shape if you are renting a home through a property management company. Such companies usually hold tenant's deposits in trust accounts, so your money should be available for refund. Is there anything a tenant can do to protect themselves from the loss of money in case of foreclosure? Yes, you can record your lease. That will assure you of receiving a "Notice of Trustee's Sale" or "Notice of Default" if the property owner is in danger of losing the home through foreclosure. Foreclosures can take as long as six months to be completed, so notice can give your time to plan your move and perhaps collect any deposit money. There is one catch. To record a document the signatures must be notarized. Will a landlord agree to that? You'll never know until you ask. Another tactic is to check your landlord's name or his company's name in the records of your county recorder's office. If you find a number of financial actions have been filed against him or her that could be a danger signal. You might think twice about renting a property owned by that person. Research shows that in 2007 nearly 20% of foreclosures across the U.S. were non-owner occupied homes. This is often property owned by investors who bought with little down payment money and adjustable rate mortgages. Real estate values were climbing and they were betting that up trend would continue. Many were trapped by falling values and higher interest costs on resetting mortgages. They often just walk away from the property and their responsibility to tenants. The sad fact is that perhaps millions of people will be losing their homes through foreclosure and they will be looking for homes to rent. How do they keep from jumping from the frying pan into the fire? The safest course may be to only rent from a management company that promises to keep any refundable front money in an escrow account. That may be as close to a guarantee of getting your money back as you will be able to find in the current real estate market.
Article Source: http://www.bharatbhasha.net Article Url: http://www.bharatbhasha.net/real-estate.php/114000 Article Added on Thursday, January 29, 2009
| |||||||||||
|
| |||||||||||
| Real Estate >> Top 50 Articles on Real Estate | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Category - > | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
