In my prospecting efforts I ran across a rental client who was unaware that her rental home was under Notice of Default and had a foreclosure date set. As this young mother, with three children in tow, answered the door how could I simply walk away and not tell her the situation. I know they say you should not discuss issues related to foreclosure with anyone but the homeowner, but I also have an ethical and moral responsibility to my fellow humans. I discussed with her the upcoming foreclosure process and timelines and in our conversation found out that this was their third property in 5 years where as a renter they were subject to foreclosure. What makes it even worse is that the homeowner had continued taking their monthly rent and using it as a source of income, without paying the mortgage.
The reason for my post is that I believe the time has come where we as Realtors should be researching the homeowner. In calling MLS listed rental properties for my clients I was told "What do you need that information for" or "This is a rental what does it matter the rental objective of the homeowner?" I take that as a sign this would not be a good prospect for my client. I would now highly recommend to all renters that they have their Realtor do a full search of tax records in hopes of discovering any outstanding liens, judgments, etc. This may include calling the homeowners lender to find out if the mortgage is current. I know that we can't guarantee that a property won't go into foreclosure, but can take the extra steps to foresee any problems. With all the rental scams currently in the marketplace, I feel it is my duty to ask the Realtor the tough questions and would hope that as the listing Realtor of the property he/she would understand the need for it. Not take it as a personal assault on the client. Being in Phoenix, one of the hardest hit cities with foreclosures, we are faced every day with scams targeting renters. Everything from a homeowner already subject to a foreclosure, to a non-owner coming in and re-kaying a property and leasing it as their own. Only to disappear after collecting all the deposits and rent monies. I cannot emphasize enough that if you are a renter in today's market hiring a Realtor is a must, especially when the landlord pays our fees. And, as much as I have found Craig's List to be a treasure trove of additional properties, that is where the scams are easily generated from. It truly is Renter Beware.
This particular renter has lost all of their security deposits on all three homes they have been forced to leave. And, as a result of that we need to take some precautions to confirm they won't be in the same boat 6 months from now. As a professional Realtor I would hope that my clients know I will do whatever it takes to give them some sense of peace in the long-term viability of their new home. There are desperate homeowners who are hoping if they can just rent the house they can save it from foreclosure. I would like to find this out beforehand, since this is a good indication that my client will more than likely be looking for a new home in a matter of months. Because it never fails, if they need the money to pay the mortgage, it will soon be used as their income. Thankfully, Phoenix had so many renters that were winding up on the streets with no money, and no plance to live, that our County government now sends a litter to the tenant informing the tenant of the impending foreclosure. Just remember, it is yours and my right as a perspective client/Realtor to ask the homeowner the tough questions. I believe I would be doing my clients a grave disservice if I didn't go the extra step. I hope my fellow Realtors would agree.
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