As of May, 2009, renters actually have RIGHTS to remain after foreclosure if they have followed the rules of this federal legislation.  Slippery slope for tenants who have not paid rent to ANYONE which many do thinking that this is best.

http://www.nolo.com/legal-encyclopedia/renters-foreclosure-what-are-their-30064.html

Via Alison Creamer, Realtor, ABR, CDPE Virginia Beach , Virginia (Keller Williams Realty Hilltop):
http://bzibee.wordpress.com/2012/02/23/foreclosure-and-renters/ If a home is foreclosed on and has a person renting it still in a lease should the bank have to honor that lease as long at the renter is paying the rent ? This is one bill that is being investigated currently and would keep banks from tossing the renter out once the foreclosure has taken place. On the surface I see it as a good policy. Tell me something that you think could be bad about it and lets have a conversation. Im a Realtor in Hampton Roads and I see this happening all the time. I have not taken a long hard looked at the pros and cons of keeping the lease in place. I do know that when you sell a home with a lease the new homeowner has to honer that lease. I would think its good practice to have the same policy with the bank takes it over. It the renter is in good standing and is willing to stay it might help the bank buy sometime on the sale of the home.

Alison Creamer BzibeeAlison Creamer, Realtor, ABR, CDPE
Direct 757.652.8880
Licensed to sell Real Estate in Virginia
Keller Williams Realty
Twitter @ Bzibee
Youtube.com/AlisonCreamer
http://www.CoffewithCreamer.com

 

 

 

Wallace S. Gibson, CPM * GIBSON MANAGEMENT GROUP, Ltd.

LandlordWhisperer

View our available Charlottesville, Albemarle and Lake Monticello rental homes online with photos and floor plans


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4 Comments on Should a renter be evicted after foreclosure ? Not if they have followed Federal Law!

FEB
24
2012
1,450,994 Points 46 Featured Posts Outside Blog Called Shot Master

Thank you for the reblog. I had an applicant recently. The credit score was under 500 and the landlord gave great reference. I  checked the landlord and found the house was foreclosed on few months ago.
5:06am • #1
556,847 Points 6 Featured Posts Outside Blog

There are a lot of people squatting in houses right now because they know the banks will take forever to kick them out and will eventually pay them cash for keys.  I'm not sure how many legitimate renters this law is actually helping.  Seems like another ridiculous government intrusion to me.
6:16am • #2
1,021,127 Points 65 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

I suspect that tenants with children in desirable schools will want to negotiate and move when school is out.
6:20am • #3
FEB
25
2012
162,166 Points 8 Featured Posts Outside Blog Called Shot Master

Foreclosure while tenants are present is a very touch situation that does need to be handled correctly.  Incorrect or out of date advice can definately lead to unintended results.
8:01am • #4

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Wallace S. Gibson CPM *

LandlordWhisperer

Charlottesville, VA

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