Is Your Landlord Going Through Foreclosure?

From Hillsborough County Government Online:

Renters and tenants of residential homes are being affected by the foreclosure crisis by landlords who don’t pay their mortgages.

While some landlords do use the rent money to make their mortgage payments, others purposely pocket the rent money and keep their tenants out of the loop as the property goes to foreclosure.

These tenants can lose out on getting their security deposit returned from the defaulting owner, and may not know to whom they should make their rent payments.

What Tenants In Foreclosure Need To Know:

1. Understand the Protecting Tenants at Foreclosure Act 2009.

• The Act guarantees tenants can remain in the unit for the duration of their lease. So, be sure to keep a copy of the signed lease.
• Tenants without a lease can remain for at least 90 days from the date they receive a written eviction notice after the foreclosure is final.
• The exception is if the owner who foreclosed intends to live in the home.

2. Research the property and owner through county records online.

• Find out if the property or owner is facing any adverse action from the mortgage holder or lender.
• Document the parties involved and track the date of the sheriff sale to have time to make arrangements if the property is already in foreclosure.
• Check property tax status to see if the owner is paying property taxes and association dues. If not, then they are most likely behind on the mortgage too.

If Tenants Want To Remain In The Dwelling:

• Keep your rent payments current, or you can’t stay.
• Ask for a receipt or document that you paid the rent.
• Make sure any cash offered by the lender to buy out the remaining term on the lease is enough to cover the security deposit.
• Confirm the identity of the current owner, and pay that owner.
• Demand any change in writing if lenders attempt to collect the rent directly from tenants once the owner has defaulted.
• Make sure you’re not a victim of a scam and confirm the address of the lender before mailing the rent check.
• Always keep a copy of the rent check for your records to protect yourself from eviction.

For a copy of the Protecting Tenants at Foreclosure Act 2009, visit the Federal Deposit Insurance Corporation website at http://www.fdic.gov/news/news/financial/2009/fil09056a.pdf