Renters Step Into Foreclosed Home Danger

Friday, May 23, 2008
Turnto23.com

The mortgage meltdown is putting some renters in a pinch. Renters have to research before renting a house. One local couple just moved into a new home, and 15 days later they found out the owner had gone into default. It was a lesson learned too late for Matt and Ronnie Newfield. Coincidentally, the last house they were living in went through foreclosure. Luckily, they got out in time.

They didn't want to go through that again, so they decided to go through a property management company. When they moved in at the beginning of the month they were excited about calling the place home, especially with their new baby on the way. They signed the lease, got the keys and 15 days later they found a notice of trustee's sale on the door.According to legal experts, property management companies are under no obligation to inform renters that a house is in default. So the renter must do their own research to find out if the house is in jeopardy of foreclosure. In order for renters to protect themselves, they must first go to a title company and give them the address of the house. They can check to see if a house is in trouble before anyone decides to rent.Mario Espinoza of Chain and Younger Law Offices said, "When a house is going into default ... It's a red flag."It's a red flag that may save people some green. The Newfields paid $1,350 for first-month's rent and a $1,000 security deposit.Now they have to move again and may not even get their security deposit back. The Newfields are upset and said they feel burned.The only recourse them at this point is to take the owner to small claims court to try to get their security deposit back.ABC23 tried to contact the owner Caesar Martinez by phone. He was unavailable for comment.

FAIR USE NOTICE. This document may contain copyrighted material the use of which may not have been specifically authorized by the copyright owner. Tenants Together is making this article available on our website in an effort to advance the understanding of tenant rights issues in California. We believe that this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the U.S. Copyright Law. If you wish to use this copyrighted material for purposes of your own that go beyond 'fair use,' you must obtain permission from the copyright owner.

 

 

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