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How to tell if a potential landlord is foreclosing?User Forum Topic
Submitted by b on September 18, 2008 - 8:30pm
I intend to rent a 1br condo very soon in the Sabre Springs area, as there are a few decent deals out there. However, I want to make sure that I rent from an owner who is not (and will not) foreclose on the property when I am there (I believe this is called "rent skimming"). The only actions that I can come up with, are: What are your solutions?
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I wonder if security deposits could be held in some type of escrow account for this very reason? I have no idea if that's ethical, legal, or viable, but at least a renter wouldn't be completely screwed if the sheriff shows up and invites you to move out.
We recently bought a house, but for the last 6 months of our rental lease I was worried that the house we were renting was headed to foreclosure. The homeowners had confessed financial problems to me so I had cause for concern...
In the end things worked out. They even allowed us to use our security deposit as last month's rent since they knew we would leave the place spotless.
One other bit of advice: I would be VERY wary of renting a place from Craig's List or any other dubious/unknown source. I would rent a place through a realtor or agent. At least someone would be accountable...
Those are not your only options. You can go downtown and lookup all recorded notices on the property.
If you are especially concerned about any issues regarding the home, you need to make sure you put it in the lease agreement. Anything and everything that you worry about should be in the lease agreement otherwise it will be difficult for you to get anything after the fact.
Interesting. I'll definitely have to add something to the lease agreement, then.
I would recommend you look at the last sale price of the house. If their estimated mortgage payment is $4000 and you are going to rent the place for $2500 you might want to think twice.
However, I want to make sure that I rent from an owner who is not (and will not) foreclose on the property when I am there (I believe this is called "rent skimming").
Getting a place that is not bank-owned or mid default is a good idea. However, your logic fails on the "will not" part. A remarkable amount of people who are gainfully employed and of good means are foreclosing in ways that nobody (not even Rich) would have predicted. That may change but anybody is a potential defaulter at present (even people who can totally afford their payments).
Rent skimming either involves A:buying a place (usually at 100% financed) and renting it out immediately and not making payments or B:pretending to be the owner or manager and collecting rent on behalf of an unsuspecting owner from an unsuspecting tenant. I may be wrong but I think its like civil code 890 or 891 or something.
The
The only actions that I can come up with, are:
1. Check sdlookup.com to see if the condo is listed as foreclosing.
Don't trust this. SDlookup has the most sketchy public records engine of the free sites. This is unfortunate because their regular search tools and database are better than sandicor. Instead either use the assessor office (1600? Pacific Hwy) or even easier, ask a friend who is an agent. The database we subscribe to for records is really pretty good. Heck ask me. It takes me all of 30 seconds.
2. Make it clear to the owner that I will pursue legal action if they ever decided to foreclose. (Although, I don't know if I could legally do anything... ?)
Uhhh.....no.
You don't get a say in your landlord's personal finances. You only get a say in your residence rental. If he falls down on his end of the bargain, then you can do something. Starting the conversation with the above line would remove you from most landlord's list of candidates.
What are your solutions?
Honestly, its sad to say it but the law has made most of the solutions easy. If a Notice of Default appears on your door, stop paying rent until the landlord clarifies what is happening with the deposit. Getting it in writing does not suffice. Only possession of the money is sufficient. If the repo is for sure (eg: the notice of trustee sale has been posted on your door) stop paying rent immediately. While it is technically possible to get evicted during the foreclosure, no landlord who cant pay mortgage wants to hire an attorney to evict you. Also, the eviction would only be half over by the time he lost the place. Once the foreclosure has completed, the new landlord has to give you 60 days to vacate from when they get the place. During that time you pay no rent. If the new listing agent for the property (hired by the bank), wants to offer cash for keys (where they pay you to move out early) decide if it is worth forgoing 2 months free rent.
Sorry to be cynical but I have seen a lot of friends and strangers get really screwed. The best way to stay informed is to ask a friend to look up the property every 2 months or so.
At www.checkmylandlord.net, we're helping renters check for free to see if their landlord is paying the mortgage. It has been helpful to a lot of people. Spread the word!
A website with no privacy policy nor any contact information does not lend itself to be credible, IMHO.
Who would these potential renters be submitting information to?