What Renters Can Do When Facing Foreclosure

While there are no figures on the number of renters who are affected by foreclosures, a record 2,203,295 foreclosures were filed nationwide in 2007, up 75 percent from 2006, according to RealtyTrac, a company that monitors them. If your landlord’s property is subject to foreclosure, experts advise the following:

1. Stay put. As a tenant, you cannot be forced out immediately from the apartment or house you are renting. If utilities were included in your rent, the new owner—typically the bank—is responsible for utility payments, as well as repairs and maintenance. Check your state’s foreclosure laws to determine the length of time you can stay in foreclosed property.

2. Avoid “cash-for-keys” offers to leave the premises immediately. Most are not enough to pay the expenses involved in finding and securing another place, and by accepting them, you give up your legal rights.

3. Seek legal representation as soon as you learn about foreclosure. In most states, free or inexpensive legal services are available to older adults or those on fixed incomes.

4. Keep paying your rent. If you can, try to find out who the new owners are and, in a letter, offer to pay the rent. If the new owners refuse to accept rent, put the money aside. Keep copies of all correspondence between you and the new owners.

5. Look for new housing. Most new owners insist on selling the property vacant. While a few are willing to work with foreclosed renters in a manner that is amicable for both parties, in the end the new owners can determine to whom they rent.

Sharon Shahid is a writer in Maryland.