The Home I Am Renting Is In Foreclosure, What Should I Do ...

Q: I found out the home I?m renting is in preforeclosure. I have children and gave a large deposit. If I move should I expect the deposit back so I can put it toward another place? Where do I look for help?
?Anonymous, Los Angeles, CA

A: You should seek the help of your local attorney to see what your options are but reality may be that the landlord does not have the funds to reimburse your deposit. States have different laws on deposits so check with the attorney to find out the law in CA. If they have to hold it in escrow then it may still be available to you. I would suggest that in a future rental unless it is being managed by a big firm with a great history and track record to add language that the mortgage is verified quarterly as being up to date by the tenant to avoid paying rent while a landlord lets the home be foreclosed.
Mike Grumbles is a Realtor? with Exit Realty of the South in Franklin, TN.

A: Dear LA-
Some Foreclosure processes have a procedure known as ?Cash for Keys? that help the unsuspecting Lessee recover from upfront deposits lost when a lease agreement is disrupted prematurely by foreclsoure proceedings.

I suggest you take the route of preparing to move to save yourself the hassle of short notice.

Should the knock at your door come before you are ready to move, ask the bank what they plan to do to aid you with financial recovery.

Good luck!
Larry Simons is a Realtor? with Century 21 Maselle & Associates in Flowood, MS

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Related posts:

1. What Happens If The Home You Are Renting Is In The Early Stages Of Foreclosure?
2. Can a Landlord Be Held Accountable If A Tenant Withholds A Deposit In A Sublease Situation?
3. Should Part Of The Rental Security Deposit Be Paid To The Realtor?
4. The House We Are Renting Is In Foreclosure, What Do We Do?
5. Can I Get My Deposit Back Before The Bank Approves A Short Sale?

Source: http://www.realtor.com/blogs/2012/09/27/the-home-i-am-renting-is-in-foreclosure-what-should-i-do/

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