Foreclosures and the Impact on Renters
Much attention is placed on homeowners facing foreclosure. Yes, this attention is well deserved, but it appears as if many media and news organizations have forgotten about the impact foreclosure has on renters. If you are a renter living in a property that is facing or is in the middle of foreclosure proceedings, you may not know what to do or where to turn. For you, it may seem like you are at the end of your rope.
When facing foreclosure, many renters will simply just cut their losses and relocate. This may mean having to move without recouping a security deposit. Unfortunately, there are some renters, possibly you, who cannot up and afford to relocate, especially without getting your security deposit back. When renting a new apartment, most landlords require a security deposit and if you weren’t prepared to move, you may not have the money.
There is another serious issue that renters forced to relocated are facing. Foreclosures are on the rise. What does this mean? It means that an unprecedented number of homeowners have no place to live. This often turns them into renters. Unfortunately, this lessens the availability and rental choices for renters, like yourself. It may mean that you have to pay more in rent or move to another city or town.
As previously stated, many renters decide to throw in the towel and relocate. If you are unable to do so, you may want to wait and see what happens. Of course, during this time you should take steps to protect yourself. Save enough money to cover your moving expenses, including a new security deposit. You will be prepared in the event that you are legally evicted from the property. You should, however, know that eviction from a property in foreclosure is not something happens overnight. You usually have a few days or even a few weeks to make alternative living arrangements.
Before making a decision, all renters are urged to look at the property in question. Are you renting a unit from an apartment complex or a multi-family home? If you are, you may be able to stay. Investors at foreclosure auctions often purchase rental units. These investors want to see a return on their profit. The way to do this is to make sure their rental units are filled with quality, on time paying tenants. With that said, if you are renting a single-family home, you may want to prepare to relocate. Unlike with rental properties, single-family homes are often purchased in foreclosure auctions by those looking to live inside.
Despite the fact that some new rental property owners may be willing to work with you and let you continue to rent, there is no guarantee that the property will sell. When low bids are received at a foreclosure auction, the original lender often steps up to the plate and buys the home. In this case, the home is no longer considered a foreclosure, but a REO (real estate owned) property. Unfortunately, this doesn’t always workout well for renters. With REO properties, lenders, who are also known as investors, may start the eviction process right away. Many cannot or do not want to become property managers, even just for a month or two.
As previously stated, foreclosures can occasionally come as a surprise to renters. Your landlord will receive multiple warnings and notices, but they are not required by law to share them with you. Renters usually become aware of foreclosure proceedings when notices are placed on the building. At this point in time, you should contact the lender in question. See what your options are. Can you buy the property yourself? If you can prove that you have a stable income, the lender in question may be willing to work with you.
As a recap, foreclosures are having a significant and usually negative impact on renters. If you are a renter who lives in a property that is facing foreclosure or if you fear foreclosure is looming, you may want to start making preparations to ensure that you are well prepared for what is to come.
Foreclosures: How to Get Your Lender to Help
When homeowners are facing foreclosure, the mortgage lenders often become referred to as evil, heartless people. While this anger in understandable, it could be in the way of you keeping your home. Unless you foresee having financial problems for years to come, you will want to make nice with your financial lender. After all, they may be able to provide you with an alternative. This alternative can keep your home out of foreclosure or stop the current process right in its tracks.
The first step in getting your lender to work with you, to avoid foreclosure, is speaking with them. You will get nowhere by avoiding them. Whenever you receive a warning or an intent of foreclosure notice or a phone call, start making plans to contact your lender. While you may want to head straight to your local bank branch, you may want to take a few hours or a day to reflect on the situation. This will allow you to develop a plan of action, a plan of action that will be successful.
Before meeting with an official at your bank, it is important to know what you will say and how you will say it. This is key to keeping your home out of foreclosure. Although financial lenders want to avoid foreclosures at all costs, they don’t want to keep on losing money. Lenders are usually unwilling to work with those who don’t show true interest in rectifying the situation. That is why a plan of action is required.
As for that plan of action, collect as much information as you can about your current financial situation and the cause of it. For example, are you currently laid off, but looking for a new job? Take your updated resume to with you. It can help to show that you are actively looking for a job and trying to save your home. Let them know of any upcoming interviews you may have scheduled as well.
If you are out of work due to an injury and that injury is only temporary, get notices from your doctor and your place of employment. This will prove to your lender that you still have a job waiting for you and will be able to return to work soon. Proving that you do intend to make your mortgage payment in full and as soon is possible is key to avoiding foreclosure or stopping it.
Next, it is important to consider your appearance and your attitude. Starting with your appearance, it is important to walk into the bank with your head held high. You will also want to dress professionally. Women should wear dresses or pantsuits. For men, pantsuits are also recommended. Avoid casual clothing. For many financial lenders, a borrower who carries himself or herself in a professional manner shows responsibility. Responsibility is another important key to getting your lender to work with you.
As for your attitude, make sure that you don’t have one. As previously stated, financial lenders often become the bad guys when foreclosure is threatened or when the process gets started. No matter how angry you are with your lender, do not let your anger show.
If you learn that your financial lender is willing to work with you, to help you avoid foreclosure, they may offer their own suggestions. You can take these suggestions, but don’t get in over your head. Reduced mortgage payments are nice, even if they are only temporary, but make sure that you can pay them. If a strict deadline is set for the return of the originally agreed upon payments, make sure you can make those payments too. If not, the whole foreclosure warning process will start again.
In short, always approach your financial lender if you suspect foreclosure is on the horizon or as soon as the proceedings start. Since lenders lose money on foreclosed properties, they want to avoid foreclosure just as much as you do.
Foreclosures: When to Accept Your Fate
Millions of homeowner are currently in danger of losing their homes. Why? Because of foreclosure. Due to the high unemployment rate, poor job outlook, rising fuel and food costs, many homeowners just can’t afford their homes anymore. If you find yourself in this situation, you may be unsure as to what you should do.
One of the most common questions asked by those facing foreclosure is when you should just accept your fate. In all honesty, this is a step that most homeowners are advised against taking. Before deciding to give up on your home and move, it is important to know and familiarize yourself with your options. First, know that there is help for you. This help can come from an attorney specializing in real estate or foreclosures, a HUD approved housing counselor, or even your financial lender.
If you are a homeowner, foreclosure should not come as a surprise to you. You will receive numerous phone calls and letters from your financial lender, even before the foreclosure process begins. If you intend to act, now is the time to do so. If you are faced with only temporary financial hardships, such as an injury that will keep you out of work for three months, speak to your lender. They may be willing to workout a temporary payment plan with you. This plan may result in short-term lower payments. Remember, the sooner you act, the better your chances are. Lenders are less likely to work with you when you already owe them a large amount of money.
As it was previously stated, you may want to seek help from an attorney that specializes in foreclosures. Many are familiar with steps that you can take to stop your bank from foreclosing on your property. One of those steps may involve declaring bankruptcy. In some states, this is enough to cause a bank to hold off on the process of foreclosure. Also, an experienced lawyer may make it so that your home cannot be touched during bankruptcy.
Regardless of which action you decide to take, you should do so with the assistance of a trusted professional. However, it is important to make sure that you seek that assistance in a timely matter. For example, in some states foreclosure proceedings cannot be stopped once they have started. That is why as soon as you notice financial problems or receive an intent to file foreclosure notice from your lender, you need to act and fast.
Once the foreclosure proceedings have started, like when you see your property listed for sale online or in the newspaper under foreclosure auctions, you may need to start accepting your fate. Many of your friends and family members will encourage you to stay and fight, but you may suffer legal consequences for doing so. Banks and new property owners can legally have you evicted from your home and you will need to move.
This is also the point in time when many homeowners are thinking of ways to stay in their home. Renters are encouraged to speak to the new property owner to see if they can continue renting and living in the rental unit. This approach often works for renters, but it is unlikely to work for you. If your home is a single-family home, it will likely be lived in, not used as a rental property. Although you can ask or even beg to stay in the home, you may want to start getting your belongings and finances in order.
Rental apartments usually require security deposits. Make sure you can afford this required deposit. Look into other fees and expenses, such as the cost of renting a moving van. Start looking for affordable apartments or make arrangement with friends or family members right away. If you are not prepared or choose to ignore your eviction notice, you may, literarily, find yourself out on the street, if not in jail.
Foreclosures: When to Consult an Attorney
In the United States, foreclosures are hitting an all-time high. What does this mean? It means that you may be impacted, if you haven’t already been. When it comes to foreclosures, many homeowners and renters do not know where to turn. There may come a point in time when you need to consult with or hire an attorney.
Most media attention surrounding foreclosures is focused on the property owner. Yes, many of the individuals facing foreclosure are owners of single-family homes that they live in, but not always. A large number of rental property owners are finding themselves in foreclosure. As a renter, you may be curious as to what your rights are. If you want professional assistance, an attorney should be contacted.
In keeping with renters facing eviction due to foreclosure, proper notice must be given. Regardless of who is trying to have you evicted, whether it be the bank or the new property owner, proper notification is a must. In most states, a written, legal eviction notice is needed. Depending on your state, you may be given up to a month or more to move. Generally, you will not be expected to move out overnight. Also, until an eviction notice has been served, you cannot have your belongings moved from your apartment or have your utilities shut off. If this occurs, contact an attorney right away.
If you are a homeowner facing foreclosure, it may be in your best interest to consult with an attorney right away. As soon as your bank issues intent of foreclosure, it is best to explore your legal options. Remember, however, that you may want to work out an agreement with your financial lender, as they too want to avoid foreclosure.
One of the many reasons why you are encouraged to contact a lawyer, namely one who specializes in foreclosure, is because they have legal tricks up their sleeve. A lawyer can help you stop foreclosure proceedings in their tracks. One of the ways that this is done is by declaring bankruptcy. Bankruptcy can temporarily put a hold on foreclosure proceedings. In some states, homeowners can receive protection when filing for bankruptcy, meaning that their home cannot be touched. Since there are various rules and restrictions concerning this exemption, professional legal advice is recommended.
Unfortunately, another issue that homeowners facing foreclosure have to deal with are foreclosure scams. There are individuals and companies out there who claim to be professionals who can help you get back on track. They may offer to buy your home or and draft up a new mortgage for you. Many times though, homeowners end up paying more money than before. Do not let yourself become a victim and if you do, contact an attorney immediately.
Better yet, companies implementing the above mentioned foreclosure scams will require that you sign documents, which may essentially turn over ownership to them. Never sign anything without reading it yourself, but have an attorney take a look as well. When doing so, do not use the lawyer recommended to you. Instead, choose a lawyer that is locally based and well-known and trusted throughout your community. Ask those that you know for recommendations or find ratings and reviews online.
As previously stated, you may want to contact an attorney who specializes in foreclosures as soon as you spot trouble on the horizon. This is important, as even the best lawyers have their hands tied when the foreclosure proceedings actually start. Remember that a warning of intend to start foreclosure, does not mean that the process has already started. That is why it is vital that you seek professional advice as soon as possible.
In short, a lawyer specializing in foreclosures can provide legal assistance to both renters and homeowners. Don’t let yourself fall victim to foreclosure scams or get taken advantage of by your financial lender or landlord; be sure to seek legal help and do it fast.
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