Not even renters are safe when it comes to the recent foreclosure crisis. At the start of the recession, reports of tenants being blindsided by foreclosure notices were not unusual. The problem prompted President Obama to sign the federal “Protecting Tenants at Foreclosure Act” in 2009, which requires tenants receive a 90-day notice if they
are being evicted due to foreclosure, and that most existing leases for renters be honored up to the end of their term.
However, experts say even with this law in place, “Individual landlords- people who own one, two, or three properties is where there lies more risk for renters.” This problem is made even worse when foreclosure is coupled with Chapter 7 bankruptcy protection for the landlord. This gives a property owner pretty much a get-out-of-jail-free card, which can impact a tenant’s lease term and agreement. The “shadow market” which are houses, which would be on the market if their owners felt they could sell the properties, leave some renters wondering if they’ll ever get back their security deposits, advanced rent payments and other out-of-pocket expenses.
To read more on this story, please visit:
http://www.dailyfinance.com/story/real-estate/foreclosures-renters-threatened/19686724/
If you have any questions on this topic, please feel free to contact foreclosure defense attorney, Timothy Kingcade at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia, P.A. website at www.miamibankruptcy.com.
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