A potential buyer who is currently renting a property informed me that the home that she is staying in is in the beginning process of foreclosure. The owner is said to be behind 4 months on the mortgage. However, when they contacted the rental company, they were told not to worry because the banks have too many properties to worry about that one and that they will probably not get around to that home for now. That is bad advice.
There have already been two bpos (broker price option) done on this property. The decision to stay would be up to the tenant, my only suggestion to this tenant is be prepared and do not let it comes as a surprise to her if she's ask to leave.
This is not any new cases taking place here in my service area - however it is becoming a trend. Over and over again, we have heard it on the news about lanlords knowing that their property is going into foreclosure and yet continue to have it rented out. To some, there might be nothing wrong with this. But what about those poor tenants who have been paying their rent? Who is looking out for their interest? Once they find out that a property is getting ready to go into foreclosure, should they stay or should they go?