State Laws Require Mortgage Lenders to Provide Notice to Tenants of Foreclosed Homes- By: Leticia Carvalho
The increasing foreclosures in the United States have affected not only homeowners but also those living in homes for rent. Tenants were evicted and forced to leave their rental homes and apartments because the owners of the properties were in foreclosure.
Because of the short notice and the need to find immediately a place to transfer to, majority of tenants of homes for rent failed to recover their security deposits from the landlords.
And as the rate of foreclosures keep climbing, thousands of tenants in rental homes apartments are expected to become victims of the housing market crisis.
To protect people living in rental homes, some states have proposed laws that require mortgage lenders to provide ample notice to renters of foreclosed homes.
National Low Income Housing Coalition research director Danilo Pelletiere explains that the plight of renters have been neglected for some time now because local officials have been intent on helping homeowners avoid foreclosure.
The Census data showed that an estimated 15 million people or forty percent of the total tenants are living in single family home rental, duplex, condominium or townhouse. Single family home rentals are vulnerable to foreclosure for most of their owners are small investors.
Sheriff Robert Pickell of Genesee County, Michigan imposed a 2-week moratorium on evicting renters in foreclosed homes.
Sheriff Tom Dart of Cook County, Illinois announced that he will stop sending his deputies to do court-ordered evictions on foreclosed homes. He pointed out that most of those people being evicted were renters who had paid their rents on time.
Meanwhile, Ohio Representatives Mike Foley and Ted Celeste proposed the law, Ohio Renterís Protection Act which requires landlords to inform potential tenants if their homes for rent are in some form of foreclosure proceedings. The law also requires a notice of 30 days to be given to tenants before the closing.
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Leticia Carvalho has been educated in the finer points of the foreclosure market over 5 years.