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.
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!!