Foreclosure: Your Options Being A Tenant
Are you a renter who’s concerned with home foreclosure? With the recent media attention it has received, you may be and with good reason. Although many renters are blindsided by a foreclosure eviction notice, others may have seen the signs coming. Whichever side of the fence happen to be on, it is important to know what your options are.
Among the most common decisions made by renters who have either been served with a property foreclosure notice or see it coming is to throw inside the towel and move. Many decide here is the safest and easiest tactic to take. With that said, know that you may face a number of obstacles. Except if your landlord has received a home foreclosure notice, they don’t need to let you out of your lease. If this happens, you legally must continue paying rent.
Next, you may find it challenging or not possible to retrieve your security deposit. This may be a problem should you weren’t anticipating to move, as you may not have the funds needed to pay a new security deposit on a new property. This doesn’t mean that you are going to be left homeless or put out on the street. Remember that you really do not have to move before you receive a legal eviction notice. Next, talk to prospective landlords about your predicament. If your current landlord can vouch that you do make on time payments, you may be able to make your security deposit in affordable installments.
As previously stated, you don’t legally have to move from your rental unit until you have received an eviction notice. Because of this, many renters, especially those who were unprepared, make the decision to stay and stand their ground. In the event you want to do this, know that you may face some resistance from the bank or new property owner. With that said, until you receive an eviction notice, you cannot be forcefully removed from the property, your utilities can’t be shut off, and the locks cannot be changed on you.
Another option you have is to technique the financial lender in question. Your best luck is when dealing with either a locally owned or operated financial institution. When dong so, you are going to have two different alternatives. Ask to stay in the home or rental unit. Unfortunately, some financial institutions will automatically start the eviction process as soon as a property enters into property foreclosure. This is party due to fear that the property will not promptly sell. Many banking institutions do not want the hassle or liability of having to deal with a renter. In the event you are a long-term renter, plead your case, which should include prompt and on time rent payments.
Next, you might offer to buy the property. Even if you aren’t in the best financial standing or if you are unprepared to make the often required deposit, the lender may be inclined to work with you. Once more, your chances improve when dealing with a locally owned or operated financial institution. In the event you are a long-term renter and can prove that you have made consistent on time rent payments, have the money needed to pay for a mortgage or home loan, the lender in question may be able to work with you. After all, they want to sell the property and recoup their lost money as quickly as possible.
Although some banking institutions will start the eviction process right away, others is not going to. This really is normally when they believe they can sell the home quickly, like in an auction. If this occurs, you may want to wait and workout an agreement with the new owner. If you are in an apartment complex or a multi-family home, your chances of being able to stay are pretty good. On the other hand, should you rent a single family home, the new buyer may intend to move him or herself in.
As an important reminder, you can certainly always throw inside the towel and start preparing to move when your rental unit is facing home foreclosure, but you don’t have to. As a renter, you have a number of legal rights, as well as options.
Toks Lawrence is a Real estate consultant that is particular in dealing with houses for sale NJ and Houses for sale in New Jersey . For more information and facts on Real-estate, visit his .
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