Amid the lingering housing crisis, full of fraudulent foreclosures and missed mortgage modifications, many disenfranchised Americans have turned to renting to keep a roof over their heads, and their heads above financial water. Yet, even in a period where renting can be financially friendlier than owning, conscientious and reasonable renters continue to face this tough economy head-on…in the form of foreclosure notices?
That’s right. According to a recent report by AOL’s DailyFinance, even renters are being threatened by the meteoric rise in foreclosures with lenders actually tacking eviction notices to their rental doors. “At the start of the recession, reports of renters being blindsided by foreclosure notices were not unusual. The problem prompted President Obama to sign the federal Protecting Tenants at Foreclosure Act in 2009. It requires tenants receive a 90-day notice if they are being evicted due to foreclosure—and that most existing leases for renters be honored up to the end of their term.”
Despite these federal assurances, many terrified tenants are still pulled back into the foreclosure fray in what is being called “phase two of the mortgage mess:” a shadow market in which unsold houses are currently being rented—homes that would be on the housing market for sale if they could, in fact, be sold. But once a homeowner gets behind on their mortgage and fall victim to foreclosure, as DailyFinance put it, “The shadow market also leaves some renters wondering if they'll ever get back their security deposits, advanced rent payments and other out-of-pocket expenses. That concern, plus the uncertainty of whether to pay the property owner or the bank, has prompted some tenants to simply withhold payments altogether.”
These tenant problems can be made worse not only foreclosure but when landlords seek bankruptcy. While bankruptcy is a solid solution for homeowners seeking solace from piles of debt, their “get out of jail free card,” can be terrible sign for to the renter-debtor. In turn, some tired tenants are themselves turning to bankruptcy in the hopes of getting back on their financial feet and avoiding eviction from their “Rental Sweet Rental.” In fact, bankruptcy judges and attorneys are sometimes forcing defaulting homeowners, investors and landlords to be more accountable to their tenants. “The real estate investor that has two dozen properties that they're having a hard time with, and they just want to get out of Dodge and become a school teacher? That ain't happening,” Scott Lukes, president of Denver-based Echo Summit Property Management told DailyFinance. “ You are responsible for all this stuff and we're not going to let you out like this. So I think this has been a real problem but the system is really, really getting smart about it.”
As thousands of American renters search for more immediate and steady help to stay in their apartments and rental homes, many are turning to bankruptcy to stop their own rental recessions. If you too have been effected by the economic crisis, knowing a qualified bankruptcy attorney can also help you to conquer your creditors and face your landlord, yielding the right kinds of support, information and insights—at a low cost— for a viable and secure future beyond our own “Great Recession.” The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to +1-919-646-2654, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.