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Tenants Beware! Over 200,000 Renters Evicted Due to Landlord Foreclosures

By
Real Estate Agent with Group 46:10 Network @ eXp Realty AZ Lic# SA663942000

This is the least often talked about side of the foreclosure crisis.  Imagine having a sheriff knock on your door and tell you that you have a week to get out of your house because it was foreclosed?  Well, it's happened to over 200,000 renters this year alone according to Market Watch.

So what can you do if you are a renter?

You could ask your landlord where they stand, but I doubt most of them would be up front with you knowing that they have no intention of giving you your deposit back, and knowing that your rent payments are not being used to pay the mortgage.

Personally, I would consider whether or not it's the right time to for you to buy a home of your own.  There are lots of deals out there, and although some speculate that prices will continue to fall, historically they have to recover. Not to mention you have to pay a housing expenses anyway, so you might as well have a write off.

Secondly, there is a website called RentalForeclosure.com that will allow you to check and see if your landlord is in foreclosure. I have spoken with Dave Madam, one of the principals who says that while they currently only serve a few markets (they are rapidly growing), anyone can send them a request via their contact form and they will check out the property for them.

Now is a great time to talk to your mortgage professional about whether or not you can qualify for a home. There have been many changes in the lending world, but we are still making loans.

I look forward to helping you or anyone you would like to refer in any way that I can.

Have a great weekend!

~ Anthony

Call Consumers Advantage Mortgage at 800-757-9704. Serving all 50 states.

Comments(4)

Leslie Prest
Leslie Prest, Prest Realty, Sales and Rentals in Payson, AZ - Payson, AZ
Owner, Assoc. Broker, Prest Realty, Payson,

One more reason to go thru a management company. we check out our Owners. If we have even a hint that they are behind we start asking pointed questions, and we turn down those who are looking to the tenant's money to save them. (ANd we DON'T give the tenants' security deposit to the Owner).

Sep 17, 2008 08:53 AM
Anthony Kirlew
Group 46:10 Network @ eXp Realty - Gilbert, AZ
Helping You Make Fiscally Sound Real Estate Deals!

Leslie, I fully agree that property management companies are worth every penny and valuable to both the landlord and the tenant.  I believe that a lot of the rental market ends up with private landlords due to credit issues since the PM companies screen for their landlords.  What are your thoughts on the credit issue? Are you being more lenient these days in lieu of the abundance of foreclosures and bankruptcies?

Sep 17, 2008 09:10 AM
Leslie Prest
Leslie Prest, Prest Realty, Sales and Rentals in Payson, AZ - Payson, AZ
Owner, Assoc. Broker, Prest Realty, Payson,

We don't screen primarily on credit. We look at income (3 times the rent minimum), no legal problems, good residential and job history. We check all of that carefully.

Sep 19, 2008 08:09 AM
Andrew Monaghan
The Monaghan Group - Glendale, AZ
CRS, GRI, EPro Associate Broker

I am seeing this more and morein my area (phoenix)

Sep 19, 2008 05:51 PM