Foreclosures affect rentals

The threat of foreclosures is affecting both sales and property management. When a distressed homeowner does not sell their property as quickly as planned, they decide to list the property for rent. This will only result in additional problems for the homeowner.

Rental income is not likely to cover the mortgage, not to mention the HOA dues, taxes, and insurance. The extra income earned would only provide a minimal amount of what is due to the mortgage company. The end result is still foreclosure although now the situation is heightened because they must contend with a tenant. Many tenants decide not to pay the rent when they receive a foreclosure notice creating unnecessary legal issues for the homeowner and tenant.

In an effort to prevent this, our property managers are trained to thoroughly screen homeowners prior to taking on a listing. Although we cannot guarantee that a foreclosure will not occur, it certainly will reduce the amount of foreclosures that would have occurred otherwise.

Give us a call at 407-304-0255 to discuss your current situation.

Update, there are new guidelines designed to keep renters in homes that have been taken back by the bank.