Rent the roof over your head?
Normally renters have to prove their creditworthiness to their landlords. But with more landlords going into foreclosure, it may be time for them to prove to the renter their credit isn’t in the toilet, either.
A staggering 225,101 homeowners filed for foreclosure last month alone, according to RealtyTrac.
In this housing market, stellar tenants who pay their rent every month are finding themselves out on the street. What’s happening, unfortunately, is that many landlords can’t pay the mortgages on their properties, so they find a dependable, unsuspecting tenant to live in the property. But instead of using the rent money to pay the mortgage, they pocket it.
Renters may not always think to question the landlord about whether or not they are current on their mortgage, but to protect themselves, they may have to up the ante on investigating their prospective landlord’s finances.
Having landlords who aren’t paying their mortgages certainly isn’t anything new, but given the current economic climate, it’s become more commonplace.
Renters have rights, so don’t be afraid to exercise yours.