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Should renters be protected from the mortgage mess?
1.
I wrote a piece on Tenants and Foreclosure in California. It's at patrick.net. (Scroll to the bottom of the page.) This should answer most of the questions here.
However, tenants in most of California do not have the right to relocation assistance. The "cash for keys" is an entirely different thing, designed to get tenants to leave without being evicted (which takes time and costs money).
And both the lender and the landlord are responsible for returning your security deposit to you, unless the landlord returns it to you when the building is foreclosed. You may sue both of them and recover from either.
2. Basically if renters wish to benifit somehow from this mess, they should have put out their money and become a landord.
3. It is a shame.I have a rental, and I have lots of competition for similar propertys.one such owner was asking 1100 per month for a house that should of rented for 1600. Guess what. that house and its new tenant are in this mess.I tell people looking for rentals to be careful of rent that is too cheap for the area. that should give you cause to wonder why? and if the landlord is paying their mortgage payment. So renter beware of a good deal.
4. Great time to be in the storage or truck rental business! What ever we try to do it is to late. We did have some good laws that protected renters, but were changed. The market is just equalizing itself out after so many changes in the past. The feds 30 day hold and that revitalization check won't happen till June or July and our State is broke. This will get interesting.
5. Salgado should have stayed in the house. I paid rent to someone who didn't even own the home my family was renting. When we saw the first notice posted on the door I quit paying that scumbag. It was an additional four months of living rent free. We're out now--bought a foreclosure, but it'll be interesting to see how long it takes for the bank to figure out the home is empty. The eviction system is so backed up, we probably could have stayed there a few more months.
6. Why does a renter deserve a break? If renters had to pay the actual break even costs of the houses they rent, they couldn't afford it. The guy from Hesperia who was the focus of the story was paying $1250/mo. for a home in a town where the AVERAGE home price in 2006 is $290K...if this was just an average home the cost with a 10% down payment with taxes would be $1866/mo. This does not include upkeep, gardening, repairs, whatever. Renters (especially single family home renters) should be thanking their lucky stars that people buy houses and then LOSE MONEY renting them out. I won't do it.
7. Most people in California would love to own if everyone would quit being so greeded with prices. Now landlords are gouching everyone. When and how can we make it stop!
8. Does anyone know if it is illegal for a owner who stops making payments and goes into foreclosure but still collects rent from renters who have no idea the property is in foreclosure?
9. "put the foreclosure process on hold for 30 days to rescue struggling homeowners came several weeks too late for Mike Salgado." Are you daft? The 30 day delay would have helped a renter how exactly?
10. What about security deposits for renters? Are landlords returning these? I'd think not which means the tenant is left out to dry adding insult to injury. If you live in a house that you know is being foreclosed my advise is to stop paying rent immediately to recoup your deposit unless you have an honest landlord who's prepared you for this. It's better to hold back rent in escrow rather than pay and lose your security leaving you unable to use your deposit towards your new rental property.
Submitted by: PeonInChief
2. Basically if renters wish to benifit somehow from this mess, they should have put out their money and become a landord.
Submitted by: joyce
3. It is a shame.I have a rental, and I have lots of competition for similar propertys.one such owner was asking 1100 per month for a house that should of rented for 1600. Guess what. that house and its new tenant are in this mess.I tell people looking for rentals to be careful of rent that is too cheap for the area. that should give you cause to wonder why? and if the landlord is paying their mortgage payment. So renter beware of a good deal.
Submitted by: Joyce
4. Great time to be in the storage or truck rental business! What ever we try to do it is to late. We did have some good laws that protected renters, but were changed. The market is just equalizing itself out after so many changes in the past. The feds 30 day hold and that revitalization check won't happen till June or July and our State is broke. This will get interesting.
Submitted by: Mark D of Sherman Oaks
5. Salgado should have stayed in the house. I paid rent to someone who didn't even own the home my family was renting. When we saw the first notice posted on the door I quit paying that scumbag. It was an additional four months of living rent free. We're out now--bought a foreclosure, but it'll be interesting to see how long it takes for the bank to figure out the home is empty. The eviction system is so backed up, we probably could have stayed there a few more months.
Submitted by: Dee
6. Why does a renter deserve a break? If renters had to pay the actual break even costs of the houses they rent, they couldn't afford it. The guy from Hesperia who was the focus of the story was paying $1250/mo. for a home in a town where the AVERAGE home price in 2006 is $290K...if this was just an average home the cost with a 10% down payment with taxes would be $1866/mo. This does not include upkeep, gardening, repairs, whatever. Renters (especially single family home renters) should be thanking their lucky stars that people buy houses and then LOSE MONEY renting them out. I won't do it.
Submitted by: Jody
7. Most people in California would love to own if everyone would quit being so greeded with prices. Now landlords are gouching everyone. When and how can we make it stop!
Submitted by: dd
8. Does anyone know if it is illegal for a owner who stops making payments and goes into foreclosure but still collects rent from renters who have no idea the property is in foreclosure?
Submitted by: Maggs
9. "put the foreclosure process on hold for 30 days to rescue struggling homeowners came several weeks too late for Mike Salgado." Are you daft? The 30 day delay would have helped a renter how exactly?
Submitted by: Greg E.
10. What about security deposits for renters? Are landlords returning these? I'd think not which means the tenant is left out to dry adding insult to injury. If you live in a house that you know is being foreclosed my advise is to stop paying rent immediately to recoup your deposit unless you have an honest landlord who's prepared you for this. It's better to hold back rent in escrow rather than pay and lose your security leaving you unable to use your deposit towards your new rental property.
Submitted by: The CAT