What can a tenant do when their owner is in foreclosure?
Keeping in mind that I’m not an attorney and for full legal advice, you ought to consult an attorney, the answer is “move.” Your landlord hasn’t paid their mortgage and banks don’t work as landlords.
It’s a scenario that has played out hundreds of times across the Phoenix real estate market over the past several months as more and more homes fall into foreclosures – many owned by investors who either can’t or won’t continue to pay money on a losing call.
How do you know if the home you’re renting is going to be sold on the courthouse steps?
- Check the county recorder’s site and the “Recorded Documents Search.” Search under “N/TR Sale” which stands for Notice of Trustee’s Sale. It’s clunky but it works.
- Watch for the official notice being posted. The county’s required to post a formal notice on your front door (or rather close to it). This is one reason many tenants find out about the sale before their landlord does.
- Keep an eye on websites that list foreclosures, though do so with a wary eye as the information’s not always complete or accurate.
One thing to remember is the lease you signed is a contract between you and the owner. If the owner isn’t the owner, your lease most likely will no longer be valid. If you found the home through a property management company, contact the property managers as they often can help you find a new home.
And hopefully those owners will be in better position than your current owner.[tags]Phoenix real estate, foreclosures[/tags]