You Have the Choice to Take Back Control of Your Financial Future.

What should you do when your rental property faces foreclosure?

| Jan 26, 2018 | Foreclosures

As a landlord of a rental property in Florida, it is your responsibility to live up to your commitment to your tenants. This means ensuring they are secure in their home. While you may own the property, it is their home where they live and take care of their family. If you find yourself in financial trouble, it not only affects you but your renters as well. They are at risk of losing their home and may not even be aware of it.

Finding yourself facing foreclosure on a rental property is stressful, but imagine how your renters feel. The Landlord Protection Agency recommends taking steps to ensure you protect yourself and your renters if a foreclosure is a possibility. 

You need to be open with your tenants about what is happening. The last thing you need is someone from the bank knocking on their door and demanding payment. This can scare them and create additional problems for you. Let the tenant know he or she is not required to speak to anyone trying to collect on the mortgage payment. Advise him or her to contact you and tell anyone trying to collect money to contact you as well. 

You also need to explain the situation in clear terms so the tenant understands what may happen. Explain the foreclosure process is not immediate and takes time. Also, if you are in negotiations with your bank, make it clear you are working to resolve the situation. 

Finally, make the tenant aware that a foreclosure or threat of one does not eliminate his or her legal obligations to honor the term of your rental agreement, specifically, that he or she must still pay rent. This information is for education and is not legal advice.