Yesterday the San Jose Mercury News highlighted a growing problem- renters who have to find new housing when their landlords lose the property to foreclosure:
With foreclosures at near-record levels in Silicon Valley and elsewhere, Wright is one of many tenants who this year will find themselves suddenly scrambling to find new rentals because their landlords lost their properties to foreclosure. In nearly all cases, renters of residential houses, condos or duplexes must vacate a property after it’s been foreclosed upon and a new owner - be it a bank or an individual - takes possession.
Nearly 9,500 California properties were sold in foreclosure auctions in August, according to ForeclosureRadar.com. Of those, 44 percent were not owner-occupied, the company said.
How long renters have to vacate the property varies. According to the Mercury News:
In most cases, once a property has been foreclosed upon and the ownership changes, tenants’ leases are wiped out, and they must vacate within 30 days (60 days if they’ve lived in the property more than one year).
This can vary from state to state. I asked L about the allotted time in Arizona. He said:
In Arizona the lease is terminated with the change of ownership. If the new owner files a 5 day forcible, they would be out in 30 days.
It always pays to keep an eye on things. I believe that the owner of the home I’m renting is in pretty good shape. I generally check the county recorder’s office every month though- just in case.
Twist this does scare me. I could rent a nice house for less than I’m paying for an apartment but having to worry about the notice being taped to the door when I get home from work is not worth it. Also if you give them the first and last months rent plus a security deposit you could be out several thousand dollars before it’s said and done. My lease is almost up and the landlord offered one free month if I renew it for another year. So much for rent’s going up this complex is 1/4 empty. Maybe by this time next year I can start home shopping.
How long does it take for an NOD to get recorded?
If it’s prompt, you could just watch for it and immediately stop paying rent when it arrives…? (Note: This is not legal advice, and in fact this is probably not legal, at least without other coordinated action.)
Jim I think it’s about 90 days in Arizona I’ve read that somewhere but don’t qoute me one that. I see alot of the same homes for sale and for rent on craigslist and it makes you wonder how far around the corner is forclosure for these folks. I’m sure alot of people are wondering the same thing.
i’d suggest keeping my eye on realtytrac. they don’t give an address unless you pay but at least they give the name of the street. the thing is it’s 3 months in california before you know anything and by then oh well. at least check out realty trac before you do decide to rent to make sure the property isn’t already in foreclosure. i would be leary about renting in a new subdivision if your rent is 2500 a mo and the houses are selling for 350 and up that 2500 is not covering the payment unless the property was owned outright and that I doubt if they turn around and rent without a reason. it’s a con man’s game out there good luck.
Thanks Regina I’m afraid I’m not willing to take the gamble. I went down today and signed a new lease for 14 months and was given a nice discount for doing so. I’m hoping when the lease is up housing prices are back to a sane level and I’ll go ahead and buy. Looking at rental prices on Craigslist for the Phoenix area I’d say alot of people are upside down in their homes and many are listed by realtors.
FIRST OFF…AS SOON AS YOU KNOW THAT YOUR LANDLORD IS BEHIND OR NOT PAYING THEIR MORTGAGE ON THE RESIDENCE YOU ARE RENTING FROM THEM…QUIT PAYING IMMEDIATELY!!!…DONOT PAY THEM ANOTHER DIME PERIOD…THERE IS NOTHING THE LOSER CAN DO..THEY CAN THREATEN TO EVICT BUT IN MOST CASES THE LOSER DEAD BEAT WILL DO NOTHING AND YOU COULD LIVE IN THE RESIDENCE RENT FREE FOR AS LONG AS A YEAR..I ACTUALLY WENT FOR 14 MONTHS IN ONE HOUSE AND EXACTLY 16 MONTHS IN A CONDO..THAN THE LENDER HAD TO NEGOIATE WITH ME OR ALLOW ME ANOTHER 30 DAYS TO MOVE…AND I ONCE WAS ACTUALLY PAID CASH TO MOVE…LMAO…LOL…LOVE THESE DEAD BEAT LANDLORDS…YOU CAN EXPLOIT IT TO THE MAX..BUT DONOT PAY THEM RENT AT ALL..PERIOD…