Arizona Mortgage Guruette Aimee Ghimire penned a great article yesterday, Renters May Not Have to Move When Landlords Foreclose on Property, and tips us to further information in the Wall Street Journal.
This could be a huge step in keeping those renting homes from getting the boot when their landlord is in trouble and facing foreclosure.
And while we’re linking to other articles, this is a must read in my opinion. Chris Griffith, aka TwitterZilla, is an agent in Bonita Springs, Florida and a columnist for the Naples News. She wrote a beauty of an article last Friday titled, Banks don’t deserve bailout. I love this article!
Incidentally, Chris is in Phoenix today and several of us local real estate and Twitter types will be meeting up with her today at San Felipe’s Cantina in the Temp Marketplace. More details on that are here.
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{ 17 comments… read them below or add one }
California passed legislation earlier this year giving tennants more rights in the foreclosure process. This may need to be mandated on a state or federal level. This is a good (and smart) move on Fannie’s part but I’m sure there will be many lender’s who will not follow their lead.
Instead Fannie May should be collecting rent from the renters so they can make up some lost income in the interim. Possibly at a reduced rate so its win win.
**Aaron´s last blog post..Accepting new students for Mommy and Me Spanish Classes
Guruette – I like the word! Nice.
**Shailesh Ghimire´s last blog post..Winter is Here in Gilbert, Arizona
Good looking out with the article from Naples news Jay! I really enjoyed it. A toll road in Spain eh?? How about loans for small businesses in America for the love of God!
**Steve Heideman´s last blog post..Comment on The Fed Funds Rate May Fall, But Mortgage Rates May Not by Steve Heideman
This is a pretty nice move, but would it even be legal to evict someone in the manner described over on the Guruette’s(that is a cool word) blog?
I mean as a landlord, if you try to evict a tenant, they can goto court and get at least a month to move, perhaps more. It seems like the same would be true of the situation described in Aimee Ghimire’s post…
Thanks for the link to the article by Chris – it’s a great read and is a spot on argument. Have fun at San Felipe’s
This is really good news Jay. It really doesn’t make sense to kick people out on the streets because their landlord was not keeping up with his payments. Especially when properties are sitting on the market for months before being sold. The property will be in better condition if the people living there don’t feel they are being mistreated
**Allen Davis´s last blog post..How Can You Avoid Making Mistakes When You Buy Your Home?
I think that’s a great step forward. Tenants should have full rights to the lease the signed, right? If they leave early, they pay a fee, but it doesn’t quite work the other way. Tenants should definitely be entitled to stay in the home for the length of their lease, glad to hear about this!
One benefit is there would be less homes stripped for their copper and fixtures. That is an epidemic around here.
I’m with the other Aaron. Why can’t the banks just take over the leases? Some money is better than no money although with prices falling in many areas, the rent maybe enough to cover the payment on the home. It seems like most banks would be big enough to work with a management company to do repairs, etc so it would be good for both parties.
**aaron´s last blog post..Choosing the Right Pet Insurance Company
So would they continue to pay rent to Fannie? We have this happen all the time in the DFW area.
If the tenant has been paying rent and keeping the property up, it’s only fair that they be allowed to stay.
**Ray´s last blog post..Quickly Find Metro Atlanta Foreclosures and Short Sales
I heard about this at a Phoenix Real Estate Club meeting I attended last week. Although noble in cause, I believe that it will be more difficult for the bank to sell an occupied home, unless it is under the condition the tenant moves out at closing.
**Matthew Coates´s last blog post..Market Snapshot
Nice to see these protections available for renters, after all it’s not their fault.
I think that it is the right thing to do to allow renters to stay for some time. Specially in a situation where they were not notified about the foreclosure. The banks should send letters not only to the homeowner, who may have a different address, but also letters to the occupants notifying them that the home is under foreclosure proceedings. This will alert the renter and let them start looking for another place before foreclosure.
Jose Lopez
Sarasota Florida Foreclosures
I am sure that New Jersey is working on legislation for this as well, as they think we need legislation for everything, including when and where to cross the street.
Keep up the great work, love the blog.
Jim
**James Boyer´s last blog post..Chatham NJ Home Sales December 08
That is probably the right thing to do. It may be difficult to sell the property with tenants in it, but if legislation will allow lenders to charge rent, that may be a first step in the right direction. However, sounds, scary as in a year or two many will be renting from banks.