3 Tips for Tenants that are in a property facing foreclosure.
Foreclosure is when the Bank that holds the note to the property begins to retake possession of the property because the loan holder/owner has failed to make mortgage payments. Foreclosures are up significantly in 2007 as compared to 2006 or 2005 and many tenants are getting caught in the cross-hairs. With many Adjustable rate Loans on the market entering periods of recalculation, some borrowers are in a position of not being able to make the new, higher payments. Consider in some cases the borrower has become a landlord and has a tenant. What is the tenant to do? Here are some tips:
- Make sure you are communicating: With the Landlord. With the bank/lender. With a Real Estate Professional. With a Lawyer. Make sure you understand your rights. Do what you can to ensure that you don't jeopardize your good credit or that nothing is being done to affect you in a negative manner.
- Try to Negotiate: The Landlord may have no room to negotiate, they may be holding you to the letter of the lease. But if the property has already been foreclosed upon & the bank is the owner, negotiate directly with the bank or their representative. You may be able to get them to pay an amount of your moving expenses, sometimes called "cash for keys" this is incentive for you to vacate the property sooner rather than later. By all means, avoid the eviction process.
- Make a Plan of Action: It is hard to plan with such short notice, but you as the tenant need to quickly move from a reactive move to an active stance in a short period of time. Discuss the possibility of you being able to obtain the property or a loan from the bank. Remember, they want to sell the Bank Owned / Foreclosure Northern Virginia Homes as quickly as possible and may be willing to work with you. Again, with a minimal amount of planning & communication you might just find out that you can afford a home yourself & thus consider the benefits of buying over renting. A Northern Virginia Real Estate Agent & their lending partners will be able to give you an answer about buying a home in Northern Virginia in less than 24 hours.
About the Author: Robert Earl - Founder of The Earl of Real Estate Team is a Real Estate Entrepreneur & Real Estate Coach based in the Northern Virginia. The Earl's Site features Oakton Condos for Sale - Oakton Condo Communities
More articles by robert@theearlteam.com
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