I had a very interesting situation come about in the last week and I thought that it would be an excellent discussion for this article. I get a lot of calls each week about families looking to buy one of our homes and others wanting us to buy their home.
I get so many calls in fact that it is often difficult to return calls. But this week one particular call stood out. A woman called me and she wanted to buy a house. But more importantly than buying a house she needed advice on her current situation.
She is in a house that she has been renting for the last year. She moved into the house and has been happy with it. She has paid her landlord every month on time for the entire time that she has been at the house. Recently, she got a visit from a process server and she was told that the landlord was going into foreclosure. The process server told her that she should give her landlord a call.
She called her landlord and the landlord told her not to worry about it and that he would take care of it. The woman wanted to know should she continue to pay rent even though the landlord is in foreclosure. This is a difficult question. It’s difficult because legally, yes, she should still pay the rent because the landlord still owns the house until the property is taken from the landlord in a foreclosure sale.
Often time’s people are able to work out a repayment arrangement with the lender and avoid the house going to sale. But she might feel insecure about where she is staying knowing that the property is in foreclosure. My advice in this situation is to continue paying rent to the landlord, but I would begin to look at finding another place to live.
Or, if the landlord says that they have worked out or are working out a repayment agreement, I would ask for proof. If they refuse to show you proof then that would be just cause for me to look for another place. It is very difficult to protect yourself from something like this happening to you if you are renting.
One suggestion is finding a landlord or rental company that has a third party company collect payments. That way you are sure that your payments are going to the mortgage on your house.
The other suggestion is that you can always look for a home with a company like ours that gives you owner financing. Our system makes it almost impossible for your payment to not go where it’s supposed to, and in the meantime you will own a house.
Until next time, remember, if you have any questions about selling or buying a house please drop me an email.Arthur V. Veal IV is the owner of We Buy Houses Home Services, a real estate investment company. They specialize in selling houses with owner financing. They have sold hundreds of houses to deserving families that were not able to get bank loans at the time. His company boast an 83% success rate when helping their buyers refinance the house that they get owner financing on. Find out more about there programs by visiting their site at http://www.ownwithnobank.com