How are landlords affected by the foreclosure moratorium?

Sharp, who represents renters and landlords, says it’s nearly impossible to evict renters, leaving landlords unable to pay back loans and eventually facing foreclosures. “If they’re not getting the resources and the money coming in from their tenants, which they’re not, then it’s all on them,” said Sharp.

What happens when banks take property from landlords?

“If they’re not getting the resources and the money coming in from their tenants, which they’re not, then it’s all on them,” said Sharp. When banks take the property from landlords, the renters stay put as well, making the banks struggle with a non-performing asset.

Is there a financial gap between landlords and renters?

Sharp says real estate experts are watching California’s fresh pandemic funds, which are expected to support the financial gap between renters and landlords. “In California, there’s $2 billion on the side that’s going to be administered,” said Sharp.

Who are the renters when their house is in foreclosure?

They’re being joined by scores of renters who discover, often with no warning, that their rented house or apartment is now owned by a bank, which wants them out. Who Are the Renters? Renters who lose their homes to foreclosures don’t fit a single profile.

When do you have to honor a lease on a foreclosure?

Also, many states and municipalities continue to provide the same protection. As a result, if you are buying a home that you intend to use as a rental, if it was foreclosed on after May 19, 2009, and it comes with a lease-holding tenant, it’s likely that you’ll have to honor the lease. Local laws may come into play, too.

How long can a tenant stay in a house in foreclosure?

The tenant could stay at least until the end of the lease, and month-to-month tenants would be entitled to 90 days’ notice before having to move out (this notice period is longer than any state’s non-foreclosure notice period, a real boon to tenants).