Calculated Risk warns renters to be careful of "too good to be true" deals on rent; you could end up evicted when your distressed landlord defaults.
Copyright © 2009 by The Atlantic Monthly Group. All rights reserved.
Copyright © 2009 by The Atlantic Monthly Group. All rights reserved.
i can totally see where this is coming from. when my landlord -- who leads a very marginal existence and bought the property on a subprime loan -- asked if my family and the other tenants if we could pay a second deposit when renewing our lease, we got very suspicious.
Or, when the landlord defaults, you can cozy up to the lender and make a deal to buy the place for less than you are paying in rent because the alternative is for them to have to hold the property in 'inventory' until it sells, with the cost / expenses associated with upkeep.
It is important, however, to know that the moment foreclosure proceedings start, that you do not pay the rent directly --- but pay it into a 'trust account' so that you can settle up with whoever later.
i.e. if you are evicted, take the x months of 'free' rent as a breach of contract consolation prize.
Your defaulted landlord is not exactly in a position to sue you.
If you do make a deal with the bank, having 4 to 6 months or more of 'rent' as a deal sweetener that is ready to go to them can lubricate a sale.
Oregon, being forever in the forefront of protecting tenants from rapacious landlords, has required landlords to disclose to prospective tenants if there is a pending foreclosure [ORS 90.310] since 1997. Of course the remedy dictated by the good liberals who passed the statute [twice the actual damages or twice the rent, whichever is greater], may be somewhat difficult to enforce against the [presumptively insolvent] landlord.
Similar blog post referenced above. Seems to be increasing.
Similar blog post referenced above. Seems to be increasing.