Comments on: FBI wary of new mortgage scams http://www.vipbuy.org/fbi-wary-of-new-mortgage-scams/ Home Loans, Commercial Loans, Construction Loans, Refinancing Wed, 07 Jan 2009 07:34:23 +0000 http://wordpress.org/?v=2.1.2 By: Becky http://www.vipbuy.org/fbi-wary-of-new-mortgage-scams/#comment-13 Becky Fri, 14 Sep 2007 18:51:44 +0000 http://www.vipbuy.org/fbi-wary-of-new-mortgage-scams/#comment-13 What about the families that rented property from these people...what are they supposed to do. How are they suppose to find housing and what about their security deposits? What about the families that rented property from these people…what are they supposed to do. How are they suppose to find housing and what about their security deposits?

]]> By: admin http://www.vipbuy.org/fbi-wary-of-new-mortgage-scams/#comment-14 admin Sat, 15 Sep 2007 09:11:55 +0000 http://www.vipbuy.org/fbi-wary-of-new-mortgage-scams/#comment-14 Perhaps you will find a response in the next post. Perhaps you will find a response in the next post.

]]> By: Jim http://www.vipbuy.org/fbi-wary-of-new-mortgage-scams/#comment-25 Jim Sat, 22 Sep 2007 20:12:13 +0000 http://www.vipbuy.org/fbi-wary-of-new-mortgage-scams/#comment-25 Admin: Which post were you referring to? Becky: Unfortunately for the tenants, their security deposits are very unlikely to be returned. When the lender forecloses on a given house, the lease the tenant had with the owner/landlord is no longer valid. The tenant can sue the owners to recover it but that would take time and money. Even if they won, collecting would be another issue. As far as finding housing... They are on their own to find another place to live/rent. If a tenant is on "Section 8" or assistance of some sort, then that organization will generally try to assist them in finding another place to go. Your question of "what are they supposed to do?" I recommend to tenants to not pay their rent BUT, the safe thing to do is place the rent funds into an escrow account until they know that the lender has completed the foreclosure. If the owner corrects the default, then the tenant has the funds in place to remain in good standing with the landlord. This part is very crucial to a tenant: If a lender forecloses on a property, they will be contacted either by a Realtor that has been hired to list the house or the lender themselves. Either way, MOST lenders do understand the tenants are also losing in the situation and most of the time will offer what is known as "Cash for Keys." Both the lender and tenant agree to a move out date. The tenants agree to vacate by that date and leave the house empty and have all trash removed. The lender will do a quick walk-thru on that date and hand the tenant a Cashiers Check (usually between $500 and $1,000) in exchange for the keys. Some lenders don't tell the tenants about it in hopes they won't have to pay it. So I always make sure the tenants are aware of such a program. It's a sad situation for nearly everyone involved. The owners generally have lots of other issues that contributed to losing the house, the lender loses a substantial amount of money and the City has to deal with the property not being kept up (and taxes too). Criminal acts can come up with possible vandalism, "squatting," drug activities, etc. And finally the tenants. There are no winners in these situations. -jim Admin: Which post were you referring to?

Becky:
Unfortunately for the tenants, their security deposits are very unlikely to be returned. When the lender forecloses on a given house, the lease the tenant had with the owner/landlord is no longer valid. The tenant can sue the owners to recover it but that would take time and money. Even if they won, collecting would be another issue.

As far as finding housing… They are on their own to find another place to live/rent. If a tenant is on “Section 8″ or assistance of some sort, then that organization will generally try to assist them in finding another place to go.

Your question of “what are they supposed to do?”
I recommend to tenants to not pay their rent BUT, the safe thing to do is place the rent funds into an escrow account until they know that the lender has completed the foreclosure. If the owner corrects the default, then the tenant has the funds in place to remain in good standing with the landlord.

This part is very crucial to a tenant: If a lender forecloses on a property, they will be contacted either by a Realtor that has been hired to list the house or the lender themselves. Either way, MOST lenders do understand the tenants are also losing in the situation and most of the time will offer what is known as “Cash for Keys.” Both the lender and tenant agree to a move out date. The tenants agree to vacate by that date and leave the house empty and have all trash removed. The lender will do a quick walk-thru on that date and hand the tenant a Cashiers Check (usually between $500 and $1,000) in exchange for the keys. Some lenders don’t tell the tenants about it in hopes they won’t have to pay it. So I always make sure the tenants are aware of such a program.

It’s a sad situation for nearly everyone involved. The owners generally have lots of other issues that contributed to losing the house, the lender loses a substantial amount of money and the City has to deal with the property not being kept up (and taxes too).
Criminal acts can come up with possible vandalism, “squatting,” drug activities, etc.
And finally the tenants. There are no winners in these situations.

-jim

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