Once again California is ranked #2 of the top five states when it comes to home foreclosures with the Inland Empire ranking #5 in the metropolitan top 10—certainly not a positive distinction. Foreclosure is so widespread that it seems impossible to be unaware of the plight especially as a real estate or mortgage professional. The list of those that suffer because of this scourge seems endless…owners, renters, marriages, children, pets, contractors, homeowner associations and on and on.
Tenants becoming suddenly homeless due to foreclosure has become a common problem it and protection for these innocents needs to be addressed. – landlords are not obligated to let property management companies or tenants know they are slipping into foreclosure.
The Mortgage Bankers Association says nearly one in five California homeowners who descend into foreclosure is an investor who typically doubles the trouble by displacing renters. Read the Article
Finally, there is the potential for tenant protection from foreclosure. Under AB2586 tenants of 1-4 unit properties would be notified of a possible foreclosure sale. While this may not solve all of the problems involved (return of security deposit, etc.) it’s a start.
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