When the opportunity for a fast (illegal) buck presents itself, the bad guys seem to come out of the woodwork.  Today, foreclosure scams are on the rise.  This impacts property owners and renters (tenants) too.

      Some folks are going around, knocking on doors and telling tenants they need to move out because the property is being foreclosed.  This may or may not be true–the foreclosure part that is.  It is one of two scenarios.

      One, the home is in the process of being foreclosed.  The lender is trying to put the heat on the mortgage holder by scaring the tenants into thinking they are going to have to move, pressuring the owner to pay up.  A sorry business practice however this is how some folks do their business.

      The second is the lender is trying to get the tenants out as early as possible so it is easier and faster to resell the property, limiting their loss on the deal.  Less than professional, however some will resort to anything to limit their losses.

      Everyone needs to know if a rental property is foreclosed, the tenants have 90 days to vacate.  The new owner is required to provide in writing their name and address.  Also, they must inform the tenants in writing where to send the rent check.

       Should a tenant believe the story they have to move right away, it will hurt them in the short term.  If a tenant vacates a property without terminating the lease, they are in default.  This means they can be charged as having a broken lease and lose all of their security deposit.  Not a good thing.  All tenants are advised to maintain good communication with their landlord.

      While all of the economic turmoil is very upsetting, do not make it worse.  Remember, always look before you leap.  Talking about the issue makes it clearer.  Having the facts and not making a decision on a rumor is always the best practice.

      As always, call me at (210) 273-9082 with any questions, without obligation.

Disclaimer:  No legal advice was intended in this informational article.  As always, check with an attorney when dealing with individual issues regarding the current laws or ordinances.