Tuesday, April 9, 2013

Foreclosure and Tenants

DId you know

many of you have asked “What happens to a tenant when the house they live in goes into foreclosure?”

If the tenant has a  valid lease then they can stay until the lease expires UNLESS the person that is buying the house is going to live in it. Then the tenant has 90 days to move.

What is a valid lease? The lease rate is not below market rate or the tenant is related to the owner. Things like that.

The tenant has full control not the bank or the attorney who tells them any of these things:

You have to move

You have to sign a new lease

You have no rights. You are stupid.

Many times the tenant will be given an incentive to move.Sometimes thousands of dollars BUT it is still their choice. They do not have to move. Obama signed a law in May 2009 that stated just what I told you.

It has amazed me over the years what kind of tactics these banks and attorneys will use including not telling the truth to the tenants.

Shame on them!!!!!

After sending the above email to real estate agents I thought it best to write another letter on the same subject to real estate agents that are not familiar with foreclosure laws as it relates to tenants

Did you know

Just because you get a phone call from an attorney or a bank that tells you the property you are handling has gone into foreclosure, that does not mean you just lie over and play dead. The attorney or bank MUST prove to you that it has taken legal possession of the property. This usually does not happen for at least a month if not longer. In NC it can take even longer.

Legal possession is NOT going to the court house steps and doing the foreclosure. Until  it is RECORDED at the courthouse they do not have legal possession. I have seen properties “Cried” at the courthouse steps and then 4 months later they are “Crying” again.
There is also the possibility that the foreclosure was not done correctly or a number of things. 

So remember, as an agent for your owner, you have a fiduciary responsibility to protect your owner and try to sell their property or continue to lease it. Whatever the case may be.

Don’t let the Bullies get you!!!!!!!!!

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