The legal and legislative deck is, for now, stacked severely against the borrower and homeowner in foreclosure proceedings. Some things are slowly changing and an experienced foreclosure attorney can provide real assistance to help a homeowner keep their home or at least stay in it long enough to work on some better solution.
Tenants and Foreclosure The New Rights Provided in the Helping Families Save Their Home Act of 2009! The full text of this piece of legislation can be found here. The important part of the legislation is as follows…The lender cannot evict a tenant from the property when that tenant is living under a valid lease. So how can this help the homeowner? Well, let’s say you live in a neighborhood with similar homes. You and your neighbor “switch” homes with each living in the other person’s similar or comparable home.
Even if the lender files foreclosure, that lender could not evict either party from their new home!
I’m certain the lenders were not thinking of the potential constructive use of this provision when this section of the law passed, but just think of the consequences if everyone in America converted from an owner to a tenant….and all the lenders were stuck holding the bag, forced to accept the significantly-reduced amount of rent from their new tenant…Beautiful!