Renting a Foreclosure Property?

The Protecting Tenants at Foreclosure Act says that a new owner who takes over the property after foreclosure may have to honor the terms of the rental agreement, including the length of the rental agreement if it is a valid lease; however, if the new owner plans to live at the property as a primary residence, the tenant may be able to have a 90-day notice before being evicted. The key factual issues are (1) valid rental agreement (month-to-month or a lease) and (2) if the new owner is going to live in it.  And of course, (3) rent must be paid. Even if you lease a place the same day it sells on the courthouse steps (provided it was a bona fide lease and you pay your rent) the new owner has to honor the terms, or at least give a 90-day notice from the title transfer date (not the foreclosure sale date). That is good news for renters, but only through the end of this year.  The provisions were a temporary help for tenants during the foreclosure crisis.  The Act is scheduled to expire December 31, 2014. For more information on the Protecting Tenants at Foreclosure Act of […] Read More

Why Defend a Foreclosure?

Why Defend a Foreclosure? In 99% of foreclosure cases, the client did not pay.  So why defend them?  The goal of a foreclosure defense is to modify the loan or work something else out.  NOT to say the client is innocent or to get a free house.   When the recent foreclosure crisis started, plaintiffs were making stuff up.  Then they were having people sign off of documents that they had no knowledge of.  “Linda Green” was apparently Vice President in charge of robo-signers for a number of different banks, along with “Bogus Assignee.” Homeowners knew they owed money, they knew they had not made payments, but they had no idea what their lender was doing to compromise their rights as debtors.  Many Florida homeowners went into foreclosure without ever questioning their lenders.  Thus they gave up rights as well as opportunities to seek a resolution with the best benefit to them. Because defense attorneys got involved in the foreclosure crisis, people’s rights were protected, and plaintiffs are doing a better job.   Read More