What Renters Need to Know When the Property is in Foreclosure

What renters need to know when the property is in foreclosure...

Before we talk about the things a renter should know when the property is in foreclosure, let us know first, what is foreclosure. It says that it is the action of taking possession of a mortgaged property when the mortgagor fails to keep up their mortgage payments, or it is a legal process in which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments to the lender by forcing the sale of the asset used as the collateral for the loan. That is why it is very important to the landlords that their renters be able to pay on time because they also use it to pay for the utilities and mortgage of the property. It is like a domino effect, that when renters cannot pay, landlords too won't be able to pay for their bills, and because of that problems arise.

Renters have the right to know:

1. The right to know the foreclosure status of the property.

2. How long the foreclosure will take, so they will have more time in finding a new place to rent. Renters have at least 90 days to stay in the foreclosed property.

3. If they still need to pay for the rent if the property is in foreclosure. Yes, renters must continue to pay the rent.

4. If the landlord will want to give your deposit back, if not renters can take legal action so you can get your security deposit.

5. The right to know if your landlord will sell the property because of the foreclosure.

If you want to know if your landlord is in foreclosure, try calling or contacting county assessor’s office or Recorder of Deeds office, in that way you will know the status of your rental place and can plan ahead of time of what you need to do. There are also some ways of finding or knowing if your landlord is in foreclosure:

• If he/she is not doing any regular maintenance anymore
• Doesn't respond to your maintenance request
• If there is a notice of foreclosure being posted

You can do a public record search if you want to know more of your landlord that is facing foreclosure.