In a June 2012 publication and according to the National Low Income Housing Coalition (NLIHC), 40% of the families affected by foreclosure were actually just renting the property. These tenants have no clue that their landlord is not paying the mortgage payments, and as a result have continued to pay their rent, even though their landlord may not even own the property anymore.
Furthermore, under most state laws, families affected by this were often required to move only on a couple of days notice. Thanks to the Protecting Tenants at Foreclosure Act (PTFA), most renters facing foreclosure are now allowed to either stay until the end of their lease or at least 90 days.
However, this still creates many problems for renters. For example, tenants can’t take any legal action against their landlord, and as a result lose thousands of dollars in deposits and unexpected moving expenses.
Also, PTFA is going to expire in 2014 without some immediate action by Congress. Luckily this service can check your landlord and the property you are planning on or currently renting for the early warning signs of rental fraud such as this. Find out more here or read the NLIHC Fact Sheet.