Renters all along South Florida's Treasure Coast are being affected by the spate of foreclosures.  Besides homeowners facing foreclosure, a growing number of my rental clients are being evicted from those same homes being foreclosed.  They have discovered that they are not immune from the financial fallout of the beleaguered real estate market.

With mushrooming foreclosure filings it's not just just owners losing their homes - in many cases these homes are also rental properties and because lenders are not usually interested in managing rental properties, tenants are finding themselves displaced in the process.  Not only are tenants being forced to vacate, but because they typically have no knowledge of the landlord's deteriorating financial situation, they are often taken by surprise.

Landlords Not Communicating With Their Tenants

Frequently, renters find out that their rental home has been foreclosed on when they are warned that an eviction notice is forthcoming from the lender. This notice gives the renter a chance to voluntarily vacate the premises before eviction proceedings take place.

Even if the renter's lease isn't up for several months, the tenant may get less than 60 days to vacate the premises once evicted - in most states a foreclosure makes a lease obsolete.  Since the lease signed by the renter is no longer in effect, the lender(and new owner) is not obligated to perform any maintenance or continue any other services the tenant may be entitled to, except for continuing basic utilities such as electricity and water. 

While it is nearly impossible to know if your landlord is having money problems, when repairs start getting ignored or if your landlord becomes unresponsive to your needs, you may want to consider the possibility he is being foreclosed on before signing a new lease.  Many prospective tenants are now checking tax rolls and public records to see if there are any lis pendence or other proceedings underway.  But even that is no guarantee as mortgage rates adjust after move-in and owners default on their loans.  One measure of protection against insolvent landlords is working with a rental agent who has intimate knowledge of his landlord clients.  While that is no guarantee, an agent's relationship with the property owner provides some reassurance that you will not find yourself in the throes of an eviction due to foreclosure.

Copyright © 2008 By Eric Slifkin, All Rights Reserved.. *Florida Treasure Coast Renters Affected By Foreclosures* Contact Eric Slifkin for Palm City and Stuart Florida real estate.