Ok....many people are talking about the investors and homeowners who are falling victim to the foreclosure market and doom to come...what about the renter? Not much has been published about what happens to the lonely little renter that has been happily making his payments all along and next thing he knows....time to go! The property has been foreclosed on and out with the renter! The article below addresses some of the concerns aroudn this issue and unfortunately it's just about to begin with more and more of these type problems around the country not just here in Panama City Florida!
Daily Real Estate News June 16, 2008
Renters Feeling Foreclosure Pain
Renters, including tenants who are in good standing on their rent payments, are being forced to move out quickly when the property goes into foreclosure. After the owners of the rental properties receive their notice of foreclosure, it often leaves a couple of months to less than a week before the property must be evacuated.Lawyers who help troubled renters say the problem is worsening.Nevada Legal Services, which estimates that 5,000 renting families have been forced out of their homes in the past 18 months, says lenders do not know how to deal with such tenants. "We did speak with one bank lawyer who said the liability is so extreme that it's worth it to just let the house stay empty," says Nevada Legal Services director Anna Marie Johnson. The Mortgage Bankers Association reports that about 20 percent of recent foreclosures have been against investors who did not live in the home, but the group believes the number could be higher, partly because many investors sought the financing advantages of having property categorized as owner-occupied. Source: Reuters, Patrick Rucker (06/16/08)
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