Miami Real Estate Deals

You have been renting a home for awhile now, and suddenly you are told you must
leave because the home is being foreclosed on. Where do you go for help and
what are your rights?
The most common fear of renters is coming home to a sign on the door stating
that they must be out within twenty-four hours. Typically, this won't happen.
Many states have laws that are designed to prevent this from happening.
Although it does vary, depending on the state, banks are usually required to
post foreclosure notices on the building within twenty days. These are notices
that you should be able to spot.

Another way that you can know if your rental unit is headed for foreclosure is
by regularly examining listings. These foreclosure listings are easy to find
online. Properties in foreclosure should also be listed and be available for
viewing in your local city, town, or village offices. Although you may want to
refrain from outright asking your landlord if he or she is facing foreclosure,
especially if no signs are showing, it may help to calm your fears.

Even if your building is being foreclosed on, you may not necessarily have to
start packing your bags. Some states make it so that your lease trumps the
foreclosure. This protection often occurs when a new owner is unable to afford
their mortgage. For example, is your one or two year lease with the previous
owners? If you entered into the rental agreement before the mortgage in
question was obtained, the buyer of the foreclosed property may have to honor
your lease.

Renters are also provided with a small amount of foreclosure protection when
they rent from a rent stabilized unit or when they are a part of a federal
housing program. In many states, those on Section 8 can't be evicted from the
rental unit without reasonable cause, even when ownership is transferred. Some
states and local governments also state that foreclosure is not a good enough
reason to evict those in rent stabilized housing units. Since these exemptions
vary depending on local and state governments, be sure to verify this
information ahead of time.

Although you may be offered some protection as a renter, the new owner of your
property may have other plans. Know that you can't be threatened or forcefully
removed from the premises until a proper eviction notice has been served. In
most areas, this is not something that just happens overnight, so you should
have some notice. Until that time arrives, you should not have your lock
changed, have your belongings moved from the premises or have your utilities
shut off. In the event this does happen, contact the authorities and a lawyer.
In the event your utilities are shut off, the health department can and should
be notified.

Another concern that renters have, concerning foreclosure evictions, is their
security deposit. Since most rental properties require the payment of a
security deposit, those forced to move unexpectedly are often left in a pinch.
In all honesty, it doesn’t matter how well clean or cared for you kept the
rental unit, you may have difficulty recouping your security deposit. New
owners are often exempt by law from having to pay it. You can sue the previous
owner, your last landlord, but this process can be time consuming and costly.

As you can see, you do have multiple options when facing foreclosure as a
renter. For more assistance, you will want to consult with a housing counselor
that is approved by HUD (The United States Department of Housing and Urban
Development) or a lawyer. If and when you consult with a lawyer, select one that
has experience handling legal matters that concern housing and tenant rights.