Can You Do Anything for Rental Property in Foreclosure?

Property values aren’t quite what they used to be. While many properties sold well in the past, the market is at a stand-still, leaving many people no longer able to afford their mortgages and upkeep for rental properties. The high number of defaults has lead to an equally high number of foreclosures. According to a study done earlier this year, the National Low Income Housing Coalition reported that more than 20{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} of homes in foreclosure are actually rental properties.

While renting seems like the safest option for many, there have been some surprises for renters in the U.S. Living in a property that is facing foreclosure has left some with an eviction notice posted to their doors. Tenants are being affected by the rising amount of foreclosures throughout Missouri and the rest of the Mid-West. Laws designed to help tenants, called the “Protecting Tenants at Foreclosure Act,” allows renters 90 days before they have to leave the property. The new act even has a special caviat that allows tenants to stay longer if no one is prepared to buy the property.

But what help is available to landlords? If it is in the best interest of the landlord, a chapter 13 bankruptcy may help him or her fight to keep their property. Of course, keeping property will depend on each individual’s situation. If the landlord has renters who can make their payments every month, they may be able to keep some, if not all, of their properties. Remember that if you are facing foreclosure, it may not just be your mortgage that is causing you trouble. In that case, it may not be the best decision to keep paying for properties you can no longer afford.It may be time to take a hard look at what you can really afford and see if your rental properties can still fit into your budget.

Any landlords facing foreclosure would be well-advised to talk to an attorney about their specific situation and the things in their lives that are important to them. If it is in their best interest to keep the property, then an experienced bankruptcy attorney can fight to help them keep it. Make sure you look for the best bankruptcy attorney in your area to have the most successful case.