As rents rise, low mortgage rates persist and the economy gradually improves, some who lost their home in recent years will be able to re-enter the housing market.

As rents rise, low mortgage rates persist and the economy gradually improves, some who lost their home in recent years will be able to re-enter the housing market. 

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A 2016 study by the NAR found that 1.5 million previous homeowners might be eligible to buy within the next five years, based on the time it takes to boost credit scores and save for a down payment, as well as mandatory wait times to buy another house. 

Renters are also provided with a small amount of foreclosure protection when they rent from a rent stabilized unit or when they are a part of a federal housing program.  In many states, those on Section 8 cannot be evicted from the rental unit without reasonable cause, even when ownership is transferred. 

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Some states and local governments also state that foreclosure is not a good enough reason to evict those in rent stabilized housing units. Since these exemptions vary depending on local and state governments, be sure to verify this information ahead of time. Although you may be offered some protection as a renter, the new owner of your property may have other plans. Know that you cannot be threatened or forcefully removed from the premises until a proper eviction notice has been served. In most areas, this is not something that just happens overnight, so you should have some notice. Until that time arrives, you should not have your locked changed, have your belongings moved from the premises or have your utilities shut off. In the event this does happen, contact the authorities and a lawyer. In the event your utilities are shut off, the health department can and should be notified.



Another concern that renters have, concerning foreclosure evictions, is their security deposit. Since most rental properties require the payment of a security deposit, those forced to move unexpectedly are often left in a pinch. In all honesty, it doesn’t matter how well clean or cared for you kept the rental unit, you may have difficulty recouping your security deposit. New owners are often exempt by law from having to pay it. You can sue the previous owner, your last landlord, but this process can be time consuming and costly. As you can see, you do have multiple options when facing foreclosure, as a renter. For more assistance, you will want to consult with a housing counselor that is approved by HUD (The United States Department of Housing and Urban Development) or a lawyer. If and when you consult with a lawyer, select one that has experience handling legal matters that concern housing and tenant rights.

CALL NOW FOR A FREE CREDIT HELP CONSULTATION (844) 643-0215