March 1, 2013

The Pros and Cons of Renting a Foreclosed Home in Florida

There are risks involved when renting a home in foreclosure; however, as a renter you may have rights, which a Florida real estate attorney can explain to you.

With the mortgage crisis leading to foreclosures, it is important to realize that homeowners and investors are not the only ones affected. Renters face risks, too, but a Florida real estate attorney can help protect your rights.

Renting a Home That Is in Foreclosure

An obvious con to renting a home that is in foreclosure is that you could suddenly be without a place to live, even if you have always been current on your rental payment. Unfortunately, that matters little when the house you have been occupying is suddenly up for sale.

Meanwhile, you will still be expected to pay rent to the owner if you have a rental agreement with them. This can be an even bigger sting when they did not bother to forewarn you of the impending foreclosure.

Some tenants are given very little time to find a new place, pack up, and move. It can be quite a shock to learn that they have 30 days to do all of this. The real kicker is that in many cases, there is not much legal protection for tenants who find themselves in this situation. They seem to be at the mercy of the foreclosure. It is difficult to contend with a lender who has asked you to leave. They may even threaten to damage your credit report or slap a lawsuit on you.

Renters include those in single homes, apartments, and other types of residences. Even if you are renting a condo, a condo association foreclosure can still result in you being asked to leave.

However, the Pro to being a renter in a foreclosure is that you just might have rights of which you were not aware. Some cities have laws that allow evictions from a foreclosed home to be stopped. An attorney can help determine if this applies to you.

The other pro is that some lenders are more than willing to work with a renter and will give them adequate time to find a new place and move out. It will just depends on who you are working with. It may also depend on whether or not you secure legal representation to help you.

Not all foreclosures will result in a renter being forced out. Sometimes in the midst of the process, a new owner will come on the scene.

The Protecting Tenants at Foreclosure Act of 2009 is a Federal law passed by President Obama can help prevent the loss of a lease on a property that is in foreclosure. It also allows the tenant more time to work things out and find a new place to live.

A renter may be able to stay until their lease is up, or if they are on a month-to-month lease they are usually given 90 days to leave, which is longer than the 30 days most renters are subject to when evicted on a basis other than foreclosure. This is a protection of which not all tenants are aware.

The flip side is that if the new owner intends to occupy the residence, they may be able to terminate your lease with a 90 day notice. So even if you still have a year left, you may end up having to move out within 90 days.

Contacting a Florida Real Estate Attorney

The housing crisis clearly impacts homeowners, but it may impact renters as well. If you would like to learn more about your rights as a tenant, the attorneys at The Neustein Law Group, P.A. may be able to help. Our law firm serves residents of Miami-Dade County, Broward County, and Palm Beach County, as well as surrounding counties throughout the State of Florida. To learn more about how a foreclosure may impact you as a renter, contact us today -305-531-2545 (Direct) or 888-400-ATTY (2889) (Toll Free).