I am used to getting blamed for all sorts of things.  The air conditioner goes out and it is my fault.  The house won't rent, it is my fault.  The rent check bounced, it is my fault.  I don't return phone calls, wait, that one actually would be my fault!  But, most of the time I get blamed and yet I am just the guy you can reach.

The newest thing to blame me for is a foreclosure.  Tenants think that we should know what is going on with the house payment at all times.  Well, most of our clients make their own house payment.  I collect the rent and send the proceeds to my client.  I do not make the mortgage payment in most cases.  

Often times, an owner goes into default with their bank only to recover and start making payments again.  The deal is that until the house actually becomes owned by the bank, it is owned by our client.  Until the bank takes ownership or enforces an assignment of rents, the rent must be paid to that owner or the tenant is subject to getting evicted.  

So don't blame the property manager.  Many times the first one to hear (except the owner) is the tenant when the house is posted with a Notice of Default.  Once the sale takes place there will be ample time for the tenant to negotiate a move from the property.  

 
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5 Comments on When the House You Rent Goes Into Foreclosure Don't Blame Your Property Manager

JUN
08
108,809 Points Outside Blog

I'm asking more questions at the initial client/property interview about the owners' finances, mortgages, etc.  Previously, I would not ask about the loans on the property; however, since I now want to suggest increasing their payroll deductions, I ask about their mortgage amount(s) so that I can illustrate how their cash flow and landlord deductions will operate once the property is rented....

You are correct, I've had residents e-mail me that the owner's mortgage co reps came to the property after the loan was re-cast and the mortgage rep did not get the "message" that is was no longer in peril!!

5:28am • #1
137,650 Points Outside Blog

No matter what the owner tells you today, they may go into foreclosure tomorrow.  All they have to do is stop making their payments sometime in the future.  No way to fully protect that from happening.

12:40pm • #2
JUN
13
1 Featured Post

You so right.....only I am finding a lot of property managers who are the once suppose to pay the mortgage for the owner but can't and start robbing Peter to pay Paul and all of a sudden Peter no longer exists and everything is going to h$%&&.

Or we had one I know of who decided to give themselfs a payraise...and got caught....to late.

Thoses are the guys everybody hears of not the once who do it right .....

 

4:28pm • #3
JUN
14
159,889 Points 5 Featured Posts Localism Sponsor

This year we had one owner who entered into foreclosure while we rented to a faithfully paying tenant.  When we were confronted because of the notices coming to the house, we informed the owner who casually mentioned he was trying to sell.  Of course WE were the ones blamed by the tenant.  After sharing about the foreclosure process, renter still felt we owed her something.

10:57pm • #4
JUN
23

I agree, even though we as managers make it very clear the rental contract is between the owner and the tenant.....somehow the tenant tries to get us involved.   Most owners are doing their part to involve the manager and the tenant as to the looming foreclosure...others seem to disappear leaving an angry tenant and an uninformed manager.

5:10pm • #5

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Robert Machado, CPM MPM Sacramento Area Property Manager and Property Management

Sacramento, CA

More about me…

HomePointe Property Management, CRMC

Address: 5896 South Land Park Drive, Sacramento, CA, 95822

Office Phone: (916) 429-1205 x 105

Cell Phone: (916) 531-5896

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