Miami Real Estate Deals

Much attention is placed on homeowners facing foreclosure. Yes, this
attention is well deserved, but it appears as if many media and news
organizations have forgotten about the impact foreclosure has on renters.
If you are a renter living in a property that is facing or is in the
middle of foreclosure proceedings, you may not know what to do or where
to turn. For you, it may seem like you are at the end of your rope.

When facing foreclosure, many renters will simply just cut their losses
and relocate. This may mean having to move without recouping a security
deposit. Unfortunately, there are some renters, possibly you, who can't
up and afford to relocate, especially without getting your security
deposit back. When renting a new apartment, most landlords require a
security deposit and if you weren’t prepared to move, you may not have
the money.

There is another serious issue that renters forced to relocated are facing.
Foreclosures are on the rise. What does this mean? It means that an
unprecedented number of homeowners have no place to live. This often turns
them into renters. Unfortunately, this lessens the availability and rental
choices for renters, like yourself. It may mean that you have to pay more
in rent or move to another city or town.

As previously stated, many renters decide to throw in the towel and relocate.
If you are unable to do so, you may want to wait and see what happens. Of
course, during this time you should take steps to protect yourself. Save
enough money to cover your moving expenses, including a new security deposit.
You will be prepared in the event that you are legally evicted from the
property. You should, however, know that eviction from a property in
foreclosure is not something happens overnight. You usually have a few days
or even a few weeks to make alternative living arrangements.

Before making a decision, all renters are urged to look at the property in
question. Are you renting a unit from an apartment complex or a multi-family
home? If you are, you may be able to stay. Investors at foreclosure auctions
often purchase rental units. These investors want to see a return on their
profit. The way to do this is to make sure their rental units are filled with
quality, on time paying tenants. With that said, if you are renting a single-
family home, you may want to prepare to relocate. Unlike with rental
properties, single-family homes are often purchased in foreclosure auctions by
those looking to live inside.

Despite the fact that some new rental property owners may be willing to work
with you and let you continue to rent, there is no guarantee that the property
will sell. When low bids are received at a foreclosure auction, the original
lender often steps up to the plate and buys the home. In this case, the home
is no longer considered a foreclosure, but a REO (real estate owned) property.
Unfortunately, this doesn’t always workout well for renters. With REO
properties, lenders, who are also known as investors, may start the eviction
process right away. Many cannot or do not want to become property managers,
even just for a month or two.

As previously stated, foreclosures can occasionally come as a surprise to
renters. Your landlord will receive multiple warnings and notices, but they
are not required by law to share them with you. Renters usually become aware
of foreclosure proceedings when notices are placed on the building. At this
point in time, you should contact the lender in question. See what your
options are. Can you buy the property yourself? If you can prove that you
have a stable income, the lender in question may be willing to work with you.

As a recap, foreclosures are having a significant and usually negative impact
on renters. If you are a renter who lives in a property that is facing
foreclosure or if you fear foreclosure is looming, you may want to start
making preparations to ensure that you are well prepared for what is to come.