It’s not only homeowners whose houses are underwater; owners of rental properties are underwater as well. South Florida’s foreclosure rate has dropped by 50 percent over the last year, but is still double the national average, according to CoreLogic. It is estimated that one in every 87 homes in the region had a foreclosure in the first quarter. In Miami-Dade, Broward and Palm Beach counties, about 16 percent of mortgaged homes are underwater, with loans greater than their current market value.
When it comes to foreclosures on rental properties, tenants worry about being kicked out on the street with no notice. Renters often do not know if the property is in foreclosure or in jeopardy of being sold, due to high turnover among tenants and unscrupulous landlords. Oftentimes, they do not receive the notice to which they are legally entitled to.
A recent change to Florida’s landlord-tenant law is designed to help. It guarantees that renters will have at least 30 days after the property is sold to move out. The law took effect on June 3, 2015 and was meant to replace a federal law, the Protecting Tenants at Foreclosure Act. That law, passed at the height of the foreclosure crisis in 2009 and gave renters the right to stay in their homes until their lease expired — or at the very least, 90 days. The original law was meant to be only temporary and expired on December 31, 2014. Without any comparable law in place, before June 3, 2015, tenants were simply out of luck.
The best advice for tenants is to have a back-up plan in place and speak with an attorney to help better understand your situation and your rights when it comes to the foreclosure of your rental property.
Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.