I have renters in a home that may be going into foreclosure.

Submitted by sandra from CA - 09/29/2011 - 12:49pm

I dont' want to be one of those landlords that doesn't tell them and they get the knock on the door from the Sheriff. I want to be able to explain to them the procedure, timeline, the bank/new owner as well as their their rights and obligations during and after foreclosure. Specifically, their obligation to continue paying rent, the bank and/or new owner's obligation to honor existing lease for at least 90 days, etc. Does your website provide this information? If so, where?

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Comments

Submitted by Richard - 09/29/2011 - 5:34pm

The ethical thing to do would be to tell them that the property is in foreclosure. As it seems that you have made the decision to let the property go, you should also refund any security deposits that you took from them as that is their money. After that, I would be careful not to cross the line and give them legal advice. You still are the landlord and they are your tenants. As you are not making the payments, you should extend the courtesy to the tenants and not make them pay rent. Then, they can save up for a couple of months and make a move on their terms instead of having their lives turned upside down by the foreclosure. Yes, they get 90 days, but rents have gone up in many areas, if they have kids it is a disruption to them, they have to rent a truck, pay new utility deposits, etc.

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