Today, I met a woman who was rents a home in Sacramento. We started talking about real estate and the current market conditions. She mentioned to me that her land lord was being foreclosed on and she had to move. After some digging, we found out she had been paying rent to this man for over a year, while he wasn’t paying the mortgage. And, for the past two months, couldn’t get in contact with him.
This is all far too common. From the land lord’s point of view, if he knows he is going to eventually default on his mortgage, he has no reason to tell the tenant. He can keep collecting rent as pure profit. Most often, this does not go on as long as it did in this particular case, but it all depends on how quickly the bank handles their business.
So, how can a renter protect him/herself? Do your due diligence. This information is on tax records, and therefore, is a public record. Any time you are renting a home/condo from an individual, you need to check on the status of the mortgage. It is possible the owner has paid in full and there is no loan on the home, this is a best case scenario.
Ask them if they have a loan, and then check the tax records. If they say they do not, but tax says they do, that is a big red flag. They are lying, plain and simple and there is nothing to keep them from lying in the future. Tax records will also show if they are in default. If they are, stay away. Default means they haven’t made there payment for at least 30 days. Default is the first step in the foreclosure process.
Don’t let yourself get take advantage of. Do the research and protect yourself.
This is all far too common. From the land lord’s point of view, if he knows he is going to eventually default on his mortgage, he has no reason to tell the tenant. He can keep collecting rent as pure profit. Most often, this does not go on as long as it did in this particular case, but it all depends on how quickly the bank handles their business.
So, how can a renter protect him/herself? Do your due diligence. This information is on tax records, and therefore, is a public record. Any time you are renting a home/condo from an individual, you need to check on the status of the mortgage. It is possible the owner has paid in full and there is no loan on the home, this is a best case scenario.
Ask them if they have a loan, and then check the tax records. If they say they do not, but tax says they do, that is a big red flag. They are lying, plain and simple and there is nothing to keep them from lying in the future. Tax records will also show if they are in default. If they are, stay away. Default means they haven’t made there payment for at least 30 days. Default is the first step in the foreclosure process.
Don’t let yourself get take advantage of. Do the research and protect yourself.
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