I absolutely HATE these calls. I get them 1-2 times a week so I can calm them down and let them know they are NOT alone! I have been noticing this trend also when searching for buyers. When are the banks going to wise up and start cracking down on mortgage fraud? I wonder how many tenants DO NOT know until it is too late!
I am not a vengeful person but sometimes when one gets stuck between a rock and a hard place, that is not a pretty place to be! If you want a little closure, here is some helpful advice:
- Contact an Attorney: this is a very important step before you do anything!
- If your security deposit is tied up, file a suit in small claims court.
- If you want to take it a little further you can find the lender and may want to write them a letter and let them know what has been going on. They may eventually want you to complete an affidavit.
- If your landlord was acting in the capacity of a real estate licensee or a permitted property manager and you find out they aren't really what they said they were: contact the Nevada Real Estate Division
Many banks do not have a clue that the homes that are financed as "owner occupied" are actually occupied by tenants. Many tenants may not have a clue that the home they live in is about to be foreclosed on or even in an NOD status (pre foreclosure) and is listed to be sold with instructions to "not disturb tenants."
When are banks going to wake up?
All the Best,
Realtor®
Nevada Realty Solutions - Your Dream, Your Investment, You\'re Home!
8942 Spanish Ridge Avenue
Las Vegas, NV 89148
direct: 702-580-1783
fax: 702-995-8237
Renee@ReneeBurrows.com
http://www.ReneeBurrows.com
Renee...
I had this happen to me many many years ago.
I had no idea I was paying rent on a property that would be foreclosed on.
Once it went back to the bank...I was told I had to leave. It sucked.
Where was AR back then? :)
TLW...ROAR!
Hi Renee,
I have seen this and it is a big problem here as well. Tough for the banks to figure out unless they physically inspect later. Or audit which they wont because it will cost them too much in legal fees.
As a matter a fact..the house across the street I suspect is going through this. There was a sale then the property showed up on the MLS and we see it as in for-closure. There does not seem to be tenants in there...but a car on the driveway. Could be the exact thing.
If I had a dollar for everytime I have heard that.
Bad deal for the renter.... especially if they are in a rent to own deal with a big down payment. I have seen those too.... makes me sick
That's why investment property loans have higher rates and/or fees. And if this becomes too rampant, those fees will only increase based on statistics and risk.
Renee,
I had the big duh moment as well. Thanks for sharing this.
I am afraid that we are going to come across more cases like this. Thanks for your suggestions.
Thank you for taking the time to read my post, Who or What is Stopping You?, and for making a comment.
I wish I'd had this info 20 years ago when this happened to me. I told my husband something wasn't right because our landlord was taking our checks straight to the bank and cashing them, not depositing them.
Sure enough, in about 2 months we got a letter from the mortgage company (I think it was them, either them or an attorney) informing us that we could stay but we would be month to month and the rent was outrageous!
Lost money, had to move quickly and no advice. Great job you did informing people!
Renee, I had a "conversation" with a property manager here on AR who "managed" a property in just this circumstance. His position was that he had to enforce the lease even if the owner wasn't making mortgage payments. My advice to all tenants of single residences (not apartments) is that all payments of rent should be through an escrow or licensed property manager and there should be a clause in the lease that the owner keep all mortgage payments, taxes, and insurance current.
The real bad thing about this is that the lender will "evict" the tenants and their record will reflect this unwarranted and unjust eviction.
It is good that you have raised this issue.
Bill Roberts
Oh my my my going back through old posts!
These days landlords are required by law to disclose it (yea right!) and foreclosure notices are PLASTERED on doors & garage doors stating it is unlawful to remove the notice!