Today I caught a brief news segment on CNN where the reporter was discussing the state of the United States housing market. The CNN numbers reported that 53% of homeowners are upside down on their mortgages. The reporter went on to state that many homeowners are walking away from their homes not because they cannot afford the payment but because they don't like being upside down.
While I hate all of the negative aspects of the story, I was floored when the reporter went on to tell homeowners the steps to take before they walk away from their homes. One step in particular was really alarming when the reported advocated that homeowners lease their homes out while listing the home as a short sale.
WHAT??? Seems like a good idea to help the homeowner, but eventually the home will sell, the owner is offered a deed in lieu or the home goes to foreclosure. So what about that tenant who is renting the home? What obligation does the owner have to tell the tenant the property is heading to foreclosure? What is to make the homewner be responsible to the tenant.
Ms. Reporter at CNN, you already have a homeowner who just doesn't want to pay the mortgage because they are upside down. Ms. Reporter, you add insult to injury and offer the owner the idea of leasing the home out while doing a short sale?
I may be a little sensitive about this issue because I am currently helping a tenant who signed a lease in December and got a knock at her door in January that the home was up for foreclosure. The foreclosure sale date has been postponed until May 3rd, but it is planned and my client has to find a new home. and the landlord wants her to pay rent anyways. This single parent mother has enough on her plate with four children.
For help with leasing, buying, or selling in metro Atlanta, please call 404 923 4210 or 404 246 3210. Thanks!