Renters Moving Out Due to Foreclosures
As the number of homes that enter foreclosure increase nationwide, so is the number of tenants left without homes. The sad thing about this situation is that many of these renters are not aware of what has been happening until they were given notices to move out.
Such is the case for thousands of renters who have discovered that the homes they have been living in are set to be repossessed by the mortgage lenders. Even with their diligence in paying the monthly rent, most of the landlords just pocketed the money and did not pay a single centavo in mortgage dues.
Many state and city officials have been concerned about this unfortunate plight of home renters. The problem is the laws are not enough to protect these tenants in the event of a foreclosure. All the law requires is they be given a notice of 30 days, at the least, to move out of the property once the property has been through a foreclosure sale.
For housing and rental officials, tenants should be aware of the mortgage situation of the property. It is not enough to ask the landlord. Renters can always investigate by utilizing internet bases to check for any default notices, browse the newspaper and speak with the management company, in case the property has one.
As always, tenants need to be ready for such inconvenient situation by setting aside some money that can be used as deposit and budget for moving out. Although there are cases when the new owner of the distressed property offers monetary incentive to the tenants to move out earlier, it will be best if renters have their own money.
According to real estate experts, the current tenants’ situation is just the tip of the iceberg and everyone can expect worse things to come considering that the foreclosure crisis has yet to bottom out.