Tough Time to Be a Renter in Phoenix
Posted on April 5th, 2008 by Jonathan Dalton
This week I put three short-sale listings on the market. All three of the homes have tenants in place, some for as long as two years. None knew that the owner was in need of selling. In fact, none were aware that a sale was imminent until they received a letter from the property management company (I had thought they were being called, but it went in writing via ordinary mail) and when they saw a for sale sign in the yard.
“You can’t put a sign up,” one said. “This is my yard.”
No … it’s not. I’m sorry, but it’s not your house. It’s not your yard. If the owner authorizes a sign to be put up, a sign can be put up. It’s not your house.
Many renters are finding themselves playing hopscotch as the investors who have been their landlords run into financial difficulties. Some get some warning … in the case of a short sale, it will be a couple of months before everything settles out. Others wake up to find a Notice of Trustee’s Sale taped to their front door.
Banks are less accommodating than real estate agents when a home is foreclosed. After the auction’s over, you’re out on the street. No warning is required. You’re gone.
We’re trying to work with the tenants who still are obviously aggravated. But there’s only so much we can do. The owner needs to sell. And since it’s his house and not yours, we’re going to work to sell it.
I’m sorry … but it’s not your house. You just live there.
[tags]Phoenix real estate, short sales, foreclosures[/tags]
In this kind of a market, does the seller ever think to speak to the renter about possibly purchasing the home? I know that renters generally are renting because they don’t have or don’t think they have the credit to purchase. But with the market like it is, aren’t lenders a little more forgiving right now?
It seems cruel that this has to happen to unknowing renters but it’s all over the news and happening every day in a lot of markets.
Hi, Jennifer … some owners do talk to the renters but as you pointed out, many renters have no interest in purchasing – either by choice or by necessity.
I can’t tell you how many times I’ve heard an owner say “my tenant said they want to buy the house but … (insert reason.)”
Strange thing, I rent, and I came home to find one of those neat little notices taped to the door stating there would be a trustee auction on July 31, 2008….I received it on July 7th..I called the real estate folks (People I pay the rent to) and they had no idea and still have no idea. Now I am totally messed up with attempting to figure out if I have to find a place in a few weeks or if I can stay…Then from what I hear, the buyer whoever that might be might want renters…Not a good pickle to be in and I wish I knew where the landlord actually was, just so I could ask…”Why did’t you tell me or the realitor?”
I’ve heard rumors that posting’s behind, John, but there’s usually supposed to be 90 days lead time between the notice posting and the actual sale.
If there’s no buyer at the trustee sale then the house reverts back to the bank and they’re likely not going to want a tenant. An attorney can give you the rundown as far as how all this relates to the Landlord-Tenant act but unfortunately it looks like you may have to move.
Sorry to hear it’s happening … it’s a too-common story right now.
Thanks Johnathon,
Strange thing is that the companies listed on the paper have numerous complaints listed on the internet about faking paperwork and faking all kinds of things. By the information supplied and what I have read, it is hard to find out even where the company is at. In one of the complaints I read a guy mentioned this very same thing…Could be out of Phoenix, then again could be out of someplace in Colorado. On top of all this, it would appear their are no telephone numbers that lead to a person, a couple give email addresses for messages etc…as they say….when doors open, its bound to lead someplace…maybe even better. ..