Is Your Landlord Facing Foreclosure?

Foreclosures are hitting landlords who are owners of apartment buildings putting tenants at risk.

It's a growing trend across the U.S. -- from Bakersfield, California to Palm Beach, Florida. The California Apartment Association estimates up to 25% of single family homes in foreclosure have renters living in them.

What happens if a landlord defaults on the mortgage? What can the tenant do? Legally, very little. A blog, Renters in Crisis, gives information about a web site service called Checkforforeclosure.com where tenants can find out if their landlord or building owner is in danger of foreclosure.

Renters looking to move in to a building can also look up if their prospective landlord faces the same dangers.

The web site service describes how a man and his wife in Las Vegas were paying $ 1,500 monthly to rent a home. Four months before they moved in, the landlord had gone in to foreclosure. Eventually, they had to move and couldn't recoup any of their rent money.

Although they went to court and tried to recover damages, a judge could only give them an extra 10 days to move, but there was no compensation. When an apartment building goes in to foreclosure, banks usually want the tenants to move quickly and this can give tenants some leverage. There have been "cash for keys" programs where a bank may give a tenant between $ 1,000 to $ 2,000 in exchange for the keys to the apartment.

While renters can use Checkforforeclosure.com as a research tool, they should also follow simple guidelines when looking at an apartment or single family home to rent:

Are the grounds kept neat?

How does the on-site manager act and relate? One property owner told me if a manager acts unfriendly then find another place because pride of ownership is not a consideration.

A professional, yet friendly apartment manager may have a professional and caring operation behind the scenes.

Renters should realize they do have choices, even in a tight rental market, and choose carefully where they live.