While everyone is talking about the foreclosure crisis and how it
affects homeowners, no one seems to be addressing the crisis facing
renters.
Many tenants have been paying rent faithfully. In
return, between 20 percent and 30 percent have been faced with eviction
when they are notified the house has gone to auction, been taken back
by the mortgage holder or sold to a new owner. It is hard to come up
with a accurate percentage because so many of these foreclosures are
listed on the county records as owner-occupied.
We have been
tenants for almost two years and were surprised when our door was
posted with a notice that the house would be sold at auction. Such
information is not posted until 20 to 25 days before the property is to
be sold on the courthouse steps. Up until that time the lender is
dealing only with the owner of record.
Unfortunately we had a landlord who did not notify us that the property might be foreclosed on.
Under
federal law, a tenant has 90 days in which to vacate the property after
it has been auctioned off or taken back by the lender if there is no
offer made.
If you are looking for a rental, you would be wise to
go to the county recorder's office to see when the deed of trust was
recorded and what is owed on the mortgage. Do the math. If you are
going to pay $1,500 monthly in rent and you estimate the mortgage
payment is $3,000, it's possible the house will be foreclosed upon.
Also, if the current owner is upside down (owes more than the house is
worth today), you may be faced with the same problem we were.
The following sites can be helpful: www.tenantsforeclosure.blogspot.com and www.tenantstogether.org.
Gardiner is a community activist from Modesto.
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