I have regretfully posted a slew of bad news this morning. But better to not be kept in the dark, especially in your own home.
Like Lisa Brown was. The mother of three daughters got evicted even though she made timely rent payments. The reason for her eviction was not because of anything she did, but because her landlord defaulted on the mortgage and the house fell into foreclosure. It was recently sold at auction.
Worst of all, her $5,700 security deposit – gone.
According to the Center for Housing Policy, nearly 20 percent of all foreclosures are on rental properties, and tenants’ rights in such situations are minimal; eviction papers trump the lease.
In most states, neither the bank nor the landlord has a legal obligation to tell the tenant about the foreclosure. So while the owners know what’s going on, renters are usually kept in the dark.
Brown’s broker said he had no idea.
Some states, including California and New York are working on laws to protect tenants. Who knows how long that will be.
Before you decide to rent a property, make sure you do your research and grill your landlord.
Read full story here.
