If you are a renter, you may think you are safe from the risks of foreclosure. Think again. Tenants are feeling the pinch of increased foreclosures among their landlords, resulting in unexpected evictions.
Even though she never paid her rent late, she was forced to leave and has no idea where her rent money went. She said that she didn’t believe her money was going towards the owner’s mortgage, because the condominium she was renting was being foreclosed upon.
Ashleigh Cheney used to rent in Orlando’s Regency Park. She planned to live there for at least a year, but sadly, she didn’t make it two months before she was being forced out. “She said, ‘You don’t have to worry about it,’ and I said, ‘I have a six-year-old son. I am worried’,” said Cheney, recalling a conversation with her property manager.
Ashleigh isn’t alone. People all over town are learning that their rental is being foreclosed upon.
In many cases, renters are also losing their security deposit, pet deposit and other upfront expenses.
Realtor Karen Urbanite says people are getting surprised by evictions all the time. “Don’t panic and don’t stress. Just pay your payments to the Clerk of the Courts. At least do that,” said Urbanite.
Neither the bank, nor the property owner, has to inform renters that their home is in foreclosure, and the bank does not have to let you stay in the house once the ball is rolling. Renters usually find out when they are asked to vacate, and they usually get only a few weeks’ notice.
In 2007, a bill passed the Florida House of Representatives that would give renters up to six months to move in the event their property owner was being foreclosed upon, but it has yet to become law. Lenders are fighting the proposal, saying it would forces them to become landlords.
For Ashleigh, there is a happy ending. She just sighed mortgage papers of her own and is leaving renting behind. Ironically, she is buying a house that’s in foreclosure.
Urbanite says if you rent from an apartment complex, you don’t have to worry about foreclosures. But if you choose to rent a home or condominium, do your research. Check on the landlord to determine if he or she is solvent, if mortgage payments up to date and have the property taxes been paid.
You can find all of this information by searching your county’s property tax collector’s records.
Tags: foreclosure, Foreclosures, landlord, rent, Renter
