Much attention is placed on homeowners facing foreclosure. Yes, this attention is well deserved, but it looks like numerous media and news organizations have forgotten about the impact foreclosure has on renters. In the event you are a renter living in a property that's dealing with or is in the middle of foreclosure proceedings, you may not know what to do or where to turn. For you, it might seem like you are at the end of your rope.
When facing foreclosure, many renters will simply just cut their losses and relocate. This may mean having to move without recouping a security deposit. Unfortunately, there are some renters, possibly you, who can't up and afford to relocate, especially without getting your security deposit back. When renting a brand new apartment, the majority of landlords require a security deposit and if you weren't prepared to move, you might not have the money.
There's another serious issue that renters compelled to relocated are facing. Foreclosures are on the rise. What does this mean? It means that an unprecedented number of homeowners have no place to reside. This frequently turns them into renters. Unfortunately, this lessens the availability and rental choices for renters, like your self. It might mean that you have to pay more in rent or move to another city or town.
As previously mentioned, numerous renters decide to throw in the towel and move. If you cannot do so, you may want to wait and see what happens. Of course, during this time you need to take steps to safeguard yourself. Save enough money to cover your moving expenses, such as a new security deposit. You'll be ready in the event that you are legitimately kicked out from the property. You should, nevertheless, know that eviction from a property in foreclosure is not something happens over night. You usually have a few days and even a few weeks to make alternative living preparations.
Before making a decision, all renters are urged to look at the property under consideration. Are you renting a unit from an apartment complex or a multi-family house? If you are, you may be able to stay. Investors at foreclosure auctions frequently purchase rental units. These investors want to see a return on their earnings. The method to do this is to ensure their rental units are filled with quality, on time paying tenants. With that said, in the event you are renting a single-family home, you may wish to get ready to transfer. Unlike with rental properties, single-family homes are often bought in foreclosure auctions by those looking to live inside.
Despite the fact that several new rental property owners might be willing to work with you and allow you to continue to rent, there's no guarantee that the property will sell. When low bids are obtained at a foreclosure auction, the original lender often steps up to the plate and buys the house. In this case, the home is no longer considered a foreclosure, however a REO (real estate owned) property. Unfortunately, this doesn't always workout nicely for renters. With REO properties, lenders, who're also identified as investors, may begin the eviction process immediately. Many can't or do not want to become property managers, even just for a couple of months.
As previously mentioned, foreclosures can on occasion come as a big surprise to renters. Your landlord will receive numerous warnings and notices, but they're not required by law to share them with you. Renters usually become aware of foreclosure proceedings when notices are placed on the building. At this point in time, you should contact the lender in question. See what your options are. Can you buy the property your self? If you can prove that you have a steady income, the lender in question may be willing to work with you.
As a recap, foreclosures are having a substantial and usually negative impact on renters. In the event you are a renter who lives in a property that's facing foreclosure or in the event you fear foreclosure is pending, you may want to start making preparations to ensure that you are well prepared for what's ahead.
