Many people pay attention to homeowners who are facing foreclosure. While this attention is rightly deserved, it seems that many news media outlets have forgotten about the negative impact foreclosure can have on renters. Renters living in foreclosure-prone properties may not know where to go or what to do. It may feel like you’re at the end of your rope,
Many renters simply relocate when faced with foreclosure. Sometimes, this means that you may have to relocate even if your security deposit is not repaid. Some renters may not be able to afford to move, even if they don’t get their security deposit back. Most landlords require a deposit to rent a new apartment. If you aren’t ready to move, it could be difficult to pay the security deposit.
Renters who are forced to move face another problem. Foreclosures have been on the rise. What does this all mean? This means that an unprecedented amount of homeowners don’t have a place to call home. Many homeowners end up renting their homes. This reduces the number of rental options for renters like you. This could mean you need to pay more rent or move to a different city.
Many renters choose to move. You might want to wait to see what happens if you’re unable to move. You should also take precautions during this time to ensure your safety. You should save enough money for your moving expenses and a security deposit. In the event of legal eviction, you will be ready. However, you should know that eviction from property subject to foreclosure is not something that happens in an instant. You typically have several days, if not weeks, to find alternative living arrangements.
All renters are encouraged to inspect the property before making a final decision. Do you rent a unit in an apartment building or multi-family house? You may be eligible to rent a unit from an apartment complex or multi-family home. Many investors at foreclosure auctions purchase rental units. Investors at foreclosure auctions want to make a profit. This can be achieved by ensuring that the rental units are occupied by quality tenants who pay on time. If you rent a single-family home, it is advisable to plan to move. Single-family homes can be purchased at foreclosure auctions by people who want to live in them, unlike rental properties.
Although some potential new owners of rental properties may be open to working with you to let you continue renting, it is not guaranteed that the property will sell. Low bids at foreclosure auctions often lead to the original lender buying the property. The home becomes an REO (realty owned) property instead of a foreclosure. This doesn’t always work out for renters. Lenders, also known as investors and REO properties, can initiate the eviction process immediately. Many people are unable or unwilling to manage the property, even for a few months.
As we have said, foreclosures sometimes surprise renters. Although your landlord may receive several notices and warnings, they are not legally required to share them. Notices placed on a building usually alert renters to foreclosure proceedings. You should immediately contact the lender. Find out what your options might be. Is it possible to buy the property on your own? Lenders may be open to working with you if you can show that you have a stable income.
Foreclosures have a negative and often significant impact on renters. Renters who live in properties that are facing foreclosure or fear that foreclosure may be coming soon might want to make preparations.