Investors in South Florida are quickly purchasing properties that have been foreclosed on for unpaid homeowners or condominium association liens. Many of these properties still have first and second mortgages on them, also unpaid. Banks sometimes can take years to foreclose on unpaid mortgages, allowing investors to rent out the properties in the meantime (thus making their money back) and leaving the tenants with quite a surprise when the bank eventually comes to repossess the home.
Tenants are not told by investors that the property is subject to, or will be subject to, a bank mortgage. There is no legal obligation to tell this to a prospective tenant. Tenants are typically shielded from a bank eviction via the federal Protecting Tenants at Foreclosure Act of 2009, which provides that the bank must honor the terms of a lease. However, if the property is sold to someone who will occupy it as a primary residence, then the tenants will merely be provided with a 90-day notice to leave. Prospective renters can easily avoid renting an apartment or a home that they will be kicked out of by performing a title search on the property prior to signing a lease. The title search will reveal the true owners of the property and whether the property is in foreclosure with the bank. Contact Kaye Law Offices, P.A. for a title search should you be interested in renting an apartment or home.
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