It isn’t just homeowners that are affected by financial hardship and the risk of foreclosure, but renters are often subject to eviction troubles. If an investment property becomes part of a bankruptcy case, both the owner and the renter face unique challenges.
Both Sides Of The Coin
Renting a home can be tricky business. While you may not be subject to the responsibilities of maintaining a mortgage payment, that also means you have little control over what happens between the borrower and the lender. If the rental home becomes a distressed property, you may be unaware of the mortgage debt troubles until you receive an eviction notice. Although the Protecting Tenants at Foreclosure Act of 2009 requires that the owner provide tenants with a 90 day notice to vacate, this often slips through the cracks if the lender only allows for a 30 day eviction window before taking back possession.
In such a situation there are really only two options, the property owner can resolve the debt or give up rights to the property. Giving up the home will generally mean that the renter continues to be bound to the eviction notice. However, the renter may be able to stay through their given lease term if the owner resolves the debt. One of the fastest ways to halt both a foreclosure on the property and the eviction of the renter is filing for bankruptcy.
If you are experiencing property trouble, as a renter or a landlord, contact a Tampa bankruptcy lawyer to review measures on saving the property and resolving the debt.