by VK Melhado,
published:
syndicated: 1 | total views: 5373 |
word count: 538
laesbarhedsindex readability score: Difficult Readability
on the net: http://previewnaples.com
UNITED STATES, Oct 06 — The threat of foreclosure is a very real concern not just for for homeowners, but tenants as well. With almost 450,000 foreclosure filings in Florida alone, a large percentage of these apply to rental homes. What happens if the house you’re renting goes into foreclosure?
Thanks to the recent passing of the "Protecting Tenants at Foreclosure Act," renters have more rights now than in the past.
Although renters are protected in some ways when a landlord stops paying their mortgage, if the home is already in foreclosure before being rented, many of those protections do not apply
T
he threat of foreclosure is a very real concern not just for for homeowners, but tenants as well. With almost 450,000 foreclosure filings in Florida alone, a large percentage of these apply to rental homes. What happens if the house you’re renting goes into foreclosure?
Thanks to the recent passing of the "Protecting Tenants at Foreclosure Act," renters have more rights now than in the past. Currently, existing tenants are allowed to stay until their lease runs out, plus an extra 90 days. If, however, the new owner decides to move into the house full time, the lease can be terminated, but occupants still have 90 days to find new accommodations. This rule also applies if they are on a month-to-month lease.
Exceptions to the above rules occur if tenants are behind on their rent. In such a case, they are given 3 days notice to pay what is owing, or face eviction within 24 hours. The tenants must also be considered bona fide, or they too are exempt from the protections of the Foreclosure Act.
As stated in TITLE VII, SEC. 702--PROTECTING TENANTS AT FORECLOSURE ACT, "a lease or tenancy shall be considered bona fide only if--
(1) the mortgagor or the child, spouse, or parent of the mortgagor under the contract is not the tenant;
(2) the lease or tenancy was the result of an arms-length transaction; and
(3) the lease or tenancy requires the receipt of rent that is not substantially less than fair market rent for the property or the unit’s rent is reduced or subsidized due to a Federal, State, or local subsidy."
If a home goes into foreclosures, tenants must be notified and they must respond to it. They should immediately send a letter to the judge overseeing the case, along with name, address and foreclosure number, and copy of the lease if they have one.
The more responsibly the occupant behaves upon notice of foreclosure, the better their chances are of being allowed to stay on with the new owner. In addition, those who have maintained a good repore with the bank, may be offered the option to stay on as caretakers while the proceedings are being completed. Other lenders, for whatever reason, may want the premises emptied earlier than the law stipulates, and in this case may strike up a deal where tenants are offered a cash payout if they leave sooner than required.
There are those that feel this new act doesn’t give renters enough options. Often times when a home goes into foreclosure, the banks, not prepared for their new role as landlords, do a poor job of maintaining the home and dealing with the tenant’s concerns. In this case, the tenant may choose to move out before their lease is up, but that choice is not legally presented to them.
Although renters are protected in some ways when a landlord stops paying their mortgage, if the home is already in foreclosure before being rented, many of those protections do not apply. It is the renter’s responsibility to investigate the status of the house before signing the lease, as some landlords may not volunteer this information.
Communicate directly with VK Melhado, the author of this article. Ask questions, send suggestions, comments, engage in conversation, or perhaps you would like to submit a project.
Click Here to ask a question, send a comment, or proposal.
You’ve found your perfect house and you are ready to make an offer. You sit down with your agent and decide on a price that seems fair given the condition of both the house and the local real estate market. You spend up to an hour deciding on y
Moving day is a double-edged sword for families because it can be both exciting and tedious, especially when you have children who are restless and have mixed feelings about leaving their old home. Here are some things you can do to make moving easie
Thanks to the explosion of T.V. shows featuring ambitious real estate investors quickly renovating run down homes for a pretty profit, it seems that everyone these days is trying their hand at house flipping. However, as is true for most things, it&r
What makes a condominium or apartment building truly amazing is not just its unique features, but also its usability and the desire people have to live within the building, long term. Below are four examples of amazing condos or apartment buildi
Puerto Vallarta’s calendar is always brimming over with events and shows which range from food festivals to fund raisers, sports to festivals. So it doesn’t come as a surprise to know that expats in Puerto Vallarta love the town so much.
Tunisia’s emerging real estate opportunities are quietly making an impact, as growing numbers of buyers begin to discover the attractions of this truly unique market. Having been relatively overlooked in the few years the market has been open t
Puerto Vallarta real estate industry is booming because of the many attractions and beautiful beaches in this lovely resort community. While the Puerto Vallarta Real Estate market is wonderful for vacationers and buyers, it is also a great way for pr
Most people find it difficult to buy their home as they are not in a financial condition to afford it. If you are looking for a new home and if you don’t have enough money to make your purchase then you can apply for a home mortgage loan with which y
For those who see themselves as a novice in real estate, the idea of taking that first step into real estate investment can be an extremely confusing and daunting time. Many of those who look to join this field may have found the perfect investment t
The threat of foreclosure is a very real concern not just for for homeowners, but tenants as well. With almost 450,000 foreclosure filings in Florida alone, a large percentage of these apply to rental homes. What happens if the house you’re ren
There’s a reason why Naples is called the "Crown Jewel of Southwest Florida." Perhaps it’s the miles of powdery white beaches, the non-stop ocean views and glorious sunsets, or maybe the accessibility to dozens of world-class go
Maintaining a garden in an ocean front location is not all blooming hibiscus and scented plumeria. Extreme conditions such as high winds and drought can play havoc on the sturdiest landscape. When planning your ocean front garden, you need to do you
Social networking platforms like Facebook and Twitter have become powerful vehicles for businesses to promote themselves. In addition to standard marketing efforts using social media, some companies also reach out in innovative ways, actively resolvi
There are many reasons to fire an abusive client. If someone is constantly bullying you, belittling you, criticizing your work or expressing doubts about your ethics, it is time to let them go. What you are being paid is not enough for the stress tha
Syndication
tweet
PDF version
Printable version
Publisher HTML version
Discussions (1)
Email Article
Jacob
»Tenant Foreclosures
‘Tenant really has an important function in this process and it's good to protect them’
Rating: 5.0 out of 5.0 based on 1 discussion(s).
Post New Comment