Foreclosures Badly Affects Tenants
November 20th, 2008 | by prudence |Tenants living in apartments for rent find themselves in deep problems when there is a foreclosure. The two parties involved here are the landlord and the tenant and both are equal sufferers. Along with the landlord, the tenant also has to face the brunt of foreclosure. Nearly thousands of foreclosure cases hit the real estate area everyday and many of them are rented properties.
You can well imagine how it feels, when one fine morning, a tenant is asked to vacate the home he has been living in for years. Though they have always made sure that they pay their rent on time, a foreclosure is going to affect them as well. Many of the tenants have found it a tough job to even get their security deposit back from the landlords.
If you are one of them, then it is quite understandable how it feels when you get to know that the landlord you knew for several years is not your landlord anymore. The fact remains that the tenant is bound to vacate the property when it is an issue of foreclosure.
Tenants who have a lease normally get a 30 days period after which they have to move out. This becomes 60 days when the tenant has been living in a house for over a year. Generally, the landlord has three weeks time by which he has to give the tenant his security deposit after they move. However, sometimes, this does not actually take place.
The tenant then has the freedom to file a civil lawsuit. Withholding the rent for the last month usually fails as the tenant faces an eviction on his credit report. This makes it tough to insure a new rental. There have been instances when the tenants have called up the lender to allow them to be in the home.
However, they generally face a refusal as the banks do not want to be landlords. The tenant was asked to move out from the home as fast as possible after the completion of foreclosure by sale. Sometimes, the tenants are paid a cash reward by the banks so that they move out within two weeks to allow new occupancy. This is known as ‘cash-for-keys’ transaction.
A tenant is supposed to get a 3 days notice before the landlord starts any proceeding of eviction. After the eviction takes place, it leaves a black mark on the credit record of the tenant.
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Tags: apartments for rent, Foreclosure, freedom, Real Estate Area
