Landlords with Homes in Listings of Bank Owned Homes Victimize Tenants

by on Foreclosure Crisis

With the foreclosure crisis still considered to be a major housing problem, tenants have become more and more vulnerable to the horrors of foreclosure as their landlords default on their mortgages and the rental homes end up in lbank owned property listings.

Millions of tenants all over the county have found themselves suddenly evicted from their apartments without much notice. What makes the experience worse is that their landlords did not give a hint that the rental property is in trouble of ending up in listings of bank owned homes due to mortgage default. Not only this, but tenants were religiously paying their rent each month.

With such information, these tenants could have made the necessary arrangements and prepared their finances for the eventual eviction.

According to the National Low Income Housing Coalition, 40 percent of the total number of families facing foreclosure in the country are actually renters. With this staggering number, it is not surprising that the Obama administration decided to pass a bill just this month to protect tenants from sudden evictions.

The said bill will require banks to permit tenants to stay in the rental property for a minimum of 3 months after foreclosure. Even if the property is sold, the tenants can stay in the rental property until the expiration of the lease.

Housing advocates welcomed the new law especially since it pre-empts most laws in several states that give tenants little protection from sudden eviction in the event that the rental property end up in listings of bank owned homes.

Although the passage of the bill was cheered, there are also some concerns that it is not enough to completely protect renters. Some advocates believe that more time should be given to these tenants for them to remain in the rental property.

For many renters, the horror of foreclosure is something they thought they would never have to face. But as long as there are landlords who act irresponsibly and does not really care about their tenants if the property ends up in listings of bank owned homes, these tenants do not have a chance.