Assess risk of landlord foreclosure

Inman News

Question: My friend has been renting a home and now the house is in foreclosure. Because her 15-year-old daughter is severely disabled, moving will be difficult. What can she ask potential landlords to supply that will reassure her that she won’t face a foreclosure situation again?

Answer: Asking about the solvency of the landlord is a legitimate question. The first question to ask of any prospective landlord is, “How long have you owned the property?” Chances are, a long-term mortgage that the owner has paid off regularly will not result in a sudden foreclosure. Second, ask for a copy of the landlord’s credit report. If the rental you’re considering is in a soft market, the absence of other willing, less inquisitive applicants may lead the owner to share it. Look for large debts, delinquent payments and so on. A burdened owner may choose to put money toward other debts rather than save a home in which he has little equity.

-- Janet Portman, Inman News


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