Many of us are hitting harder times than we have seen in years. As a REALTOR® I often see homes that are for sale in what is called a short sale. A simple explanation of a short sale is a seller attempting to sell their home for less than they owe on it. This takes the bank agreeing to the lower price and other terms. To qualify for a short sale, the owner must generally be behind on the payments.
As these types of listings become more and more common it amazes me how many of these listings are actually occupied by renters. Renters that are paying their rent on time, with what I would assume is the the thought that the real estate market is slow and chances are the home will not sell. They have agreed to rent the home for sale thinking that the home will most likely not sell.
Many of the homes I have recently shown lately that are in the short sale category have already been served a notice of default. The process for the bank to take the house has started. Do the renters know that there is a chance they will be asked to move because the landlord lost it to the bank? Is it fair to ask for a renter to pay rent on a home that the owner is not making payments on?
Renters – be careful out there – know the situtation. Is the place you call home in foreclosure? Is the landlord paying the mortgage? Today I read an article that a good friend of mine wrote about a similar situation. Maggie Dokic writes about scam artists that are “renting” homes that are owned by the bank.
Maggie is an agent in Florida, now I know you are thinking that is Florida this is Central Oregon. It can happen any where. Maggie has a home listed that is bank owned, bank owned properties are vacant – and easy to show to prospective buyers. Maggie received a call from another agent stating the property was occupied – it should not have been. Read the rest of what happened.
Thesa, this market has us facing lots of unique situations. We’ve all been touched in one way or another. I’m looking forward to “incidents” slowing down a bit.