What is Foreclosure? Foreclosure is often referred to as a situation in which a homeowner is unable to pay up the loan or mortgage. Foreclosure is a legal process which makes the homeowner lose all rights to the home or property. It is also known as a real estate owned (REO) property.
If you are looking for a home, you can think about buying a foreclosed property. A Real Estate Owned (REO) property is owned by the money lender based on the fact that the previous home or property owner’s nonpayment on the loan. This is why a type of home like this is referred to as a bank-owned property or a foreclosure property.
In case the home you are living in, as a Tenant, has undergone Foreclosure, the following are some of the situations you may likely end up in.
- The New Owner may allow you to keep on living in the house as a tenant
The new owner may be unwilling to start looking for new tenants since there is one readily available. On the off chance that the new property owner is not interested in searching for a new tenant or even selling the house, then be rest assure that you won’t be affected by the after-effects of the Foreclosure.
All you need to do is to change who you pay your rents to from your old landlord to the new homeowner. Try as much as possible to enquire about some proof of documentation once you must have been introduced to the new homeowner.
- You may be asked to vacate the property
Some new home owner loves fresh starts. These type of individuals may ask you to vacate their property. It is totally their call since they now own the rights to the property. Although, you need not panic. You are still able to stay in the home for up to 60 days. This will give you enough time to find a new home to move to.
At times, there a couple of exceptional circumstances in which the new homeowner can barge you out before elapsing your 60 days period of notice. “Nuisance or waste” is a type of offense that if you commit, there is a likely possibility of getting evicted from the property. This consists of any major destruction or any other criminal related offenses.
- Barter you out
At times, in a case that the new property owner does is not willing to wait for the 60 days period of notice to elapse, and will like you to vacate the property as soon as possible, you may be given a reasonable compensation or cash to make a deal. This looks just like the barter system.
At this point, everything depends on you. You can decide to accept the deal and vacate the property immediately, you can likewise decide to stay until your 60-days’ notice period elapses. In case you opt for the compensation and immediate vacation, try as much as possible to get it documented with both the owners’ signatures.
- The latent owner
At times, the new property owner may decide to remain anonymous to you. Even though this hardly happens because of RCW 59.18.060 which clearly states that it is compulsory to inform the tenants concerning any sort of change or transition in the ownership of the property or home.
If a situation like this happens, it is now your responsibility to make thorough investigations about this hidden information. However, try as much as possible to keep an account of your rents so as not to become disorganized if the new landlord shows up anytime asking for the rents.
If you happen to be the tenant of a house undergoing foreclosure, it will be wise of you to learn about and understand your rights as a significant occupant of the property. You can likewise contact an attorney without postponing it further.