Renters affected by landlords' mortgage woes on clarkhoward.com

The troubles in the mortgage market are having an unexpected side-effect on renters. It all starts when people who own homes and condos that they can't sell become involuntary landlords. Those folks rent out their places while waiting for the market to recover so they can sell down the road for a profit. But what happens when an investor who buys multiple properties on spec gets into this situation? Even if those investors have tenants in their properties, they usually can't recoup all their costs when multiple mortgages come due every month. So they sometimes stop paying the mortgage on one of their properties while continuing to make payments on their others. You're going to find an eviction notice on your door if you're unlucky enough to rent at a property that's facing foreclosure. Tenants in this situation have fewer rights than if they didn't pay their rent for months.

Clark was in this situation at age 22 when he rented a condo with an option to purchase from a divorcing couple. One day he came home after playing tennis and found a notice on his door ordering him to vacate in just seven days. His landlords were taking his rent every month and not paying their mortgage. So Clark called the mortgage company's lawyer and asked for more time than seven days to vacate. He was denied extra time, but wound up working out a deal to purchase the townhouse for $36,000 with a five percent down-payment. He also got great loan terms because the bank didn't want to deal with a foreclosure. His mortgage payment actually wound up being lower than what he'd paid in rent! So out of adversity there can be opportunity. Clark still owns this property, which has been long since paid off. He's been renting it out for 25 years and it's been a cash cow for him.

What others are saying

AGREE WITH POSTERS
1. Landlords abusing tenants is soon going to be a thing of the past.

2. Laws are now changing those non-refundable fees, non-refundable deposits, :fines: are coming to an end in the rental industry.

3. Landlord organizations and landlord groups are now going to be scrutinized by the government and other watchdog agencies for black-listing of tenants.

4. Join your local chapter of C.A.T. or other pro-tenant, government funded organization that avocates for: Tenants, tenants rights, and the reversal of landlord abuses.
By HOWARD AND CHRISTIANA HAYES @ 05/19/09 02:15:53 PMreport abuse
Don't Rent A House!!! Or Duplex!!!
The high mortgage foreclosures! Apartments may go into foreclousure, but the bank will rarely evict the tenants! Why? Too many tenants, they could call the new media, and give mortgage company, and complex a public bad name.

Houses and Duplexes are another matter though. The mortgage company is only evicting a single family, not enough to make waves in public.

The first thing a landlord does is stop paying his mortgage on his rental properties. They never let their own mortgages go, jeapordizing the roof over their heads. Sometimes, the will evict tenant, and move in themselves. The eviction process can take up to six months, but the tenant is usually never notified until the very last minute.

Rent an apartment not a house or duplex.
By Smart Renter @ 05/19/09 02:05:00 PMreport abuse
Investment property
Please explain what I can do to renegotiate an investment house mortgage
By Viki @ 03/08/09 12:15:03 PMreport abuse
POLICE OFFICER WHO IS LANDLORD THAT COLLECTED RENT FROM ME AND HOME UNDER FORECLOSURE NOW!
HELLO, MY NAME IS SHELO,I HAVE A TWO SON AND I SIGNED A TWELVE MONTH LEASE AND HAVE PAID $1000.OO A MONTH ON TIME FAITHFULLY TO MY LANDLORD WHO IS A OFFICER FOR THE NEW YORK POLICE DEPARTMENT.I JUST FOUND OUT THAT THE TOWMHOME THAT I’M CURRENTLY RESIDING IN WHICH IS LOCATED IN RIVERDALE GA,30296 ON HALLIGAN POINTE IS UNDER FORECLOSURE WHICH WAS PURCHASED IN MARCH 2007 BY HIM AND WILL BE AUCTIONED OFF ON MARCH 3RD 2009. DUE TO MY LANDLORD WHO HAS NOT BEEN PAYING HIS MORTAGE. I CALLED HIM TO ASKED WHY HE DIDN’T TELL ME HIS RESPOSE TO ME WAS I WAS WAITING TELL ME TWO MONTHS BEFORE THE PROPERTY WOULD BE SOLD AND LAUGHED! SO BASICALLY HE KNEW AND STILL COLLECTED MY RENT FOR 6 MONTHS AND DIN’T DAY A WORD UNTIL I RECEIVED A LETTER THAT WAS ADDRESSED TO HIM/TENANT FROM A LAYWERS OFFICE DEMANDING THE TOTAL AMOUNT OF 158 THOUSAND DOLLARD TO SAVE THE PROPERTY.. I AM SO UPSET THAT THERE ARE NO LAWS TO PROTECT US HARD WORKING SINGLE PARENTS WHO FALL IN THE HAND OF THESE GREEDY MONEY TAKING THIEFS AND THE FUNNY THING IS HIS AN OFFICER OF THE LAW."HE'S SUPPOSE TO PROTECT AND SERVE"
By SHELO @ 02/08/09 07:17:28 PMreport abuse
Renter and foreclosures
I currently live in a home that I rent and found out it is being foreclosed on. I did some research and found that there are options for the renter. When you get the notice of foreclosure saying you have any where from 30 to 60 days (stop paying rent right away it's called skimming rent and it is illegal for your landlord to demand rent when they are have foreclosed) to relocate the next step is they will send a real estate agent out to you who will offer you what they call buying the Keys they will give you money to leave. I have had this year two friends have this happen one received $1700.00 from the bank the other $2000.00 so defiantly make sure you ask about this. The reason the bank will do this is they don't want you to get angry and destroy the house and to encourage you not to do this they will pay you to leave. Also, be aware that the banks will do things that are illegal just hoping that you will not take action and prey on the fact you don't know your rights. For example my friend received a letter threating them to get out and if they did not respond to the notice within 30 days they would be arrested. So, they went to a local law school received some very valuable free advice and found out the letter was completely illegal but if they hadn't contacted the bank before the 30 day the lawyer said they could of kicked them out of the house simply for not responding to the letter legal or not. My advice you have rights even though a lot of people will say you don't the more you question and find out what your rights are the better off you are. Funny ending, my friend who got the $2000.00 and the illegal letter from the bank had his boss early on tell him he was crazy thinking he could take on the banks. Later, with 3 months of free rent and a well deserved $2000.00 check in his hand(those who have had to move know how expensive moving is)he went to work saying to his boss "Can you believe those banks thought they could try to take me on." Take care and all the best to us out there dealing with this difficult time.
By Heather @ 10/14/08 08:50:00 PMreport abuse
Clark --
A couple of years ago, on your advice, I put $25,000. in HSBC. How safe is it now? Is it in danger of failing?
Thank you,
Joan Donald
By Joan Donald @ 09/19/08 01:12:09 PMreport abuse

AGREE WITH POSTERS

1. Landlords abusing tenants is soon going to be a thing of the past.

2. Laws are now changing those non-refundable fees, non-refundable deposits, :fines: are coming to an end in the rental industry.

3. Landlord organizations and landlord groups are now going to be scrutinized by the government and other watchdog agencies for black-listing of tenants.

4. Join your local chapter of C.A.T. or other pro-tenant, government funded organization that avocates for: Tenants, tenants rights, and the reversal of landlord abuses.

By HOWARD AND CHRISTIANA HAYES @ 05/19/09 02:15:53 PMreport abuse

Don't Rent A House!!! Or Duplex!!!

The high mortgage foreclosures! Apartments may go into foreclousure, but the bank will rarely evict the tenants! Why? Too many tenants, they could call the new media, and give mortgage company, and complex a public bad name.

Houses and Duplexes are another matter though. The mortgage company is only evicting a single family, not enough to make waves in public.

The first thing a landlord does is stop paying his mortgage on his rental properties. They never let their own mortgages go, jeapordizing the roof over their heads. Sometimes, the will evict tenant, and move in themselves. The eviction process can take up to six months, but the tenant is usually never notified until the very last minute.

Rent an apartment not a house or duplex.

By Smart Renter @ 05/19/09 02:05:00 PMreport abuse

Investment property

Please explain what I can do to renegotiate an investment house mortgage

By Viki @ 03/08/09 12:15:03 PMreport abuse

POLICE OFFICER WHO IS LANDLORD THAT COLLECTED RENT FROM ME AND HOME UNDER FORECLOSURE NOW!

HELLO, MY NAME IS SHELO,I HAVE A TWO SON AND I SIGNED A TWELVE MONTH LEASE AND HAVE PAID $1000.OO A MONTH ON TIME FAITHFULLY TO MY LANDLORD WHO IS A OFFICER FOR THE NEW YORK POLICE DEPARTMENT.I JUST FOUND OUT THAT THE TOWMHOME THAT I’M CURRENTLY RESIDING IN WHICH IS LOCATED IN RIVERDALE GA,30296 ON HALLIGAN POINTE IS UNDER FORECLOSURE WHICH WAS PURCHASED IN MARCH 2007 BY HIM AND WILL BE AUCTIONED OFF ON MARCH 3RD 2009. DUE TO MY LANDLORD WHO HAS NOT BEEN PAYING HIS MORTAGE. I CALLED HIM TO ASKED WHY HE DIDN’T TELL ME HIS RESPOSE TO ME WAS I WAS WAITING TELL ME TWO MONTHS BEFORE THE PROPERTY WOULD BE SOLD AND LAUGHED! SO BASICALLY HE KNEW AND STILL COLLECTED MY RENT FOR 6 MONTHS AND DIN’T DAY A WORD UNTIL I RECEIVED A LETTER THAT WAS ADDRESSED TO HIM/TENANT FROM A LAYWERS OFFICE DEMANDING THE TOTAL AMOUNT OF 158 THOUSAND DOLLARD TO SAVE THE PROPERTY.. I AM SO UPSET THAT THERE ARE NO LAWS TO PROTECT US HARD WORKING SINGLE PARENTS WHO FALL IN THE HAND OF THESE GREEDY MONEY TAKING THIEFS AND THE FUNNY THING IS HIS AN OFFICER OF THE LAW."HE'S SUPPOSE TO PROTECT AND SERVE"

By SHELO @ 02/08/09 07:17:28 PMreport abuse

Renter and foreclosures

I currently live in a home that I rent and found out it is being foreclosed on. I did some research and found that there are options for the renter. When you get the notice of foreclosure saying you have any where from 30 to 60 days (stop paying rent right away it's called skimming rent and it is illegal for your landlord to demand rent when they are have foreclosed) to relocate the next step is they will send a real estate agent out to you who will offer you what they call buying the Keys they will give you money to leave. I have had this year two friends have this happen one received $1700.00 from the bank the other $2000.00 so defiantly make sure you ask about this. The reason the bank will do this is they don't want you to get angry and destroy the house and to encourage you not to do this they will pay you to leave. Also, be aware that the banks will do things that are illegal just hoping that you will not take action and prey on the fact you don't know your rights. For example my friend received a letter threating them to get out and if they did not respond to the notice within 30 days they would be arrested. So, they went to a local law school received some very valuable free advice and found out the letter was completely illegal but if they hadn't contacted the bank before the 30 day the lawyer said they could of kicked them out of the house simply for not responding to the letter legal or not. My advice you have rights even though a lot of people will say you don't the more you question and find out what your rights are the better off you are. Funny ending, my friend who got the $2000.00 and the illegal letter from the bank had his boss early on tell him he was crazy thinking he could take on the banks. Later, with 3 months of free rent and a well deserved $2000.00 check in his hand(those who have had to move know how expensive moving is)he went to work saying to his boss "Can you believe those banks thought they could try to take me on." Take care and all the best to us out there dealing with this difficult time.

By Heather @ 10/14/08 08:50:00 PMreport abuse

Clark --
A couple of years ago, on your advice, I put $25,000. in HSBC. How safe is it now? Is it in danger of failing?
Thank you,
Joan Donald

By Joan Donald @ 09/19/08 01:12:09 PMreport abuse

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Oct 17, 2007 -- Renters affected by landlords' mortgage woes

What others are saying