When Tenants Get Nervous About Foreclosure

Extra than 300,000 homes have received foreclosure notices in all of the last several months in the U.S., including plenty of rental properties whose owners cannot meet their loan obligations.

What happens to tenants when the home they are renting is foreclosed upon?

According to the Protecting Tenants at Foreclosure Act, whoever takes title to a material goods under foreclosure must protect the civil Civil rights of tenants.  Tenants with a lease are allowable to stay to the end of the lease term, unless the material goods is sold to a buyer who intends to make the home a primary residence. In that case, the tenants must receive a 90-day termination see. The same 90-day termination see is required if there is no lease in place.

And how do you satisfy a tenant who demands proof that your material goods is safe from foreclosure?

Tenants who bring up foreclosure concerns may have been affected in the past, are worried about losing their security deposit, or have heard about rental properties being foreclosed upon. Landlords can reassure tenants that their material goods is safe from foreclosure, and inform them of their civil Civil rights. Reassure tenants that their security deposit is safe, and let them know if it is held in a separate account, as is the law in many states.

But, your responsibility as a rental material goods owner most likely ends there, with no obligation to prove to your tenants that you pay your mortgage on time. Your fiscal records can remain private, no matter what a tenant may demand. To make tenants believe extra comfortable, consider including language from the Protecting Tenants at Foreclosure Act in your lease.

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