Renter's Rights During Shortsale
When times are tough, issues like foreclosures and defaulting on loans become more common. If you're renting a property, it's important to know what your rights are if your landlord decides to shortsale his property.
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Definition of Short Sale
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A short sale happens when a seller owes more than the home is worth, and negotiates with the mortgage lender to sell the property for less than what is owed. This means that the lender as well as the seller does not make any extra money on the sale, but it prevents a seller from having to face home foreclosure.
Right Against Eviction
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As a renter, as long as you have a lease signed, the new owners must abide by the lease terms. They cannot force you to leave until your lease has run its course.
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Rent
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Yes, you still have to pay rent. If the property you are renting does sell, you simply work out who the new owner is and pay rent to him or her.
Lease Renewals
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You may not be allowed to renew a lease once the property has been sold in a short sale. If the new owners want to live there, you will have no choice but to move.
Current Lease
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Your new landlord, the new owner, will have to uphold the terms of your current lease. The new owner becomes responsible for maintenance and other issues you have regarding your rental.
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