In various cities and towns across the U.S., thousands of tenants are being evicted from single-family houses, condos, townhouses and other kinds of rental properties because their landlords are in foreclosure. These tenants have been faithfully paying their rent not knowing that their landlords haven’t been paying their monthly amortizations.
Many of these renters have paid security deposits to landlords who have no more funds to return these deposits to them. They also have to scamper to look for new housing as they are given only a short time to remain in foreclosed properties.
According to the U.S. Census, nearly 15 million tenants live in properties belonging to small investors who have been severely affected by the financial crisis. Out of the almost 400,000 properties recorded by RealtyTrac as delinquent or waiting for foreclosure sales, about one-third were occupied by renters.
In Ohio, state Representatives Mike Foley and Ted Celeste have introduced a law to protect tenants from the adverse effects of foreclosure. The law would compel landlords to inform tenants that the property is being foreclosed not later than 30 days after the foreclosure filing. It would also require mortgage companies and other types of lenders to notify tenants of a sale within 30 days before the sale is implemented.
In California, Governor Arnold Schwarzenegger has signed a law to enable tenants to stay in foreclosed properties for 60 days after the properties are sold while they find new housing.
In Cook County, Illinois, Sheriff Tom Dart announced he’ll no longer serve eviction orders because many people being evicted were tenants who have been paying their rent.
In Genesee County, Michigan, Sheriff Robert Pickell issued a two-week suspension of evictions involving renters of foreclosed homes.
According to a nationwide association of state legislatures, several states such as Minnesota, Washington, Indiana and Rhode Island evaluated proposals concerning the welfare of tenants in foreclosed properties but were not able to act on them.
Author Resource:-
Leticia Carvalho has been educated in the finer points of the foreclosures market over 5 years. Read about the following article Tenants in Foreclosed Properties Receive Help by Leticia Carvalho.
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