How are we protecting Renters from Forclosures

Vincent, That is a great point.  I don't do rentals but I would imagine rental companies and agents ought to start doing public record searches on landlords prior to leasing for them.  They should also have a clause that if the seller does not disclose any liens or imminent foreclosure action on the property, he will be liable to pay tenants moving expenses and damages.  Wendy

Yeah I worry about that.  It's pretty slimy to take the rent and not pay the mortgage.....   The poor tenants didn't do anything but they could end up being evicted anyway.  One could try to take the landlord to court but he probably is about to declare bankruptcy.

In my county (Erie, New York) it takes five minutes to determine if the property has a lis pendens filed.  Not only can you direct your rental client away from the distressed property, but you could also land a listing if you approach the owner in time.

 

 

I'm new to this but could you do a back ground check on the landlord as you do the would be tenants?

Carol

I have been running into this problem myself.  I try to do as much investigating as possible and I have been asking that the security deposit be put into a trust fund of a third party for a certain amount of time and I have not had anyone turn that down yet.

I think it is a big problem, and it is much more common with lower income, credit challenged renters, folks down on their luck who will take what they can get just to put a roof over their heads.

Vincent:

Your post is very interesting and sheds light upon some things we need to think about. Perhaps it is time for "good" reanters to do a background on the owners just as the owners do a background on the renters.

thanks for commenting on my post.

Run a Lien check on the property or pull one yourself at your Registrar's office. However as a Broker I would ask why are my agents working so hard to place a renter into a house??? I know it might be a good thing to do but is that really what you should be doing? Property Management is a sticky business and facilitating a rental contract as a licensed agent is even more sticky....????

I believe Renters have every right to interview their potential landlord. "How long have you owned this house?", "Have you ever had a house in foreclosure?", etc. I recently did a Cash for Keys for a tenant in a house the owner was foreclosed on. Guess what.....it was auctioned off when he signed the rental agreement......how slimy!! This woman with 3 kids left on December 17th. with a measly $250 from the bank and she will more than likely lose her security deposit. Unreal. She asked me if I thought this was fraud......I told her the name of my attorney.

I think some renters think that  - ok - so what - I can just not pay - stay here rent free - it is not on my credit - I'll move when you make me.

A different spin on the sitiation.