10News.com

Sustain San Diego
Holiday Gift Guide Button
Sustain San Diego
10 News Leadership Award
San Diego News
E-Mail News Alerts
Get breaking news and daily headlines.
Browse all e-mail newsletters
Related To Story

Are Some Renters Paying Rent On Foreclosed Homes?

POSTED: 6:31 pm PDT October 21, 2008
UPDATED: 6:47 pm PDT October 21, 2008

A South Bay home is where two servicemen used to live.

While they were overseas, they kept paying rent to a homeowner whose property was under foreclosure.

It's a house with quite a history.

"Unfortunately, with this subprime tragedy that we're going through, his payment went up and he couldn't hold on to the home. During this process these people are paying rent," said

The property owner said she accepted the payments because she believed the bank would negotiate a new loan.

However, realtor Marilyn Swartz said the tenants were never notified.

"Unfortunately, these young men were not made aware of that because the previous owner did not contact them," said Swartz.

Meantime, the property owner said she had every intention of keeping the home. She said she also notified the tenants the minute she found out about the foreclosure.

While this isn't the case for this property, Swartz said some property owners pocket rent money during default.

"I think people need to be aware of the fact that if you're renting keep an eye on what's going on," said Swartz.

Legal experts said landlords must give tenants a 30-day notice, and owners must also pay back deposits.

The problem is if a property becomes foreclosed, most owners have no money to give back.

The two Marines are still on active duty in Iraq and Afghanistan.

The realtor said she maintains communication with them.

Links We Like
Sponsored Content
You can pick your friends, but not your family -- or your neighbors. Here's what you need to know about how to deal with yours. More

Find out what a sputtering economy and an increasingly difficult to crack job market means to you. More

Are you often tired or rushed in the morning? Give your morning habits a makeover, and start the day feeling positive and energetic instead. More

If you're looking to save on your next new vehicle, a low sticker price is just one aspect. Consider all the costs and make the right decision. More

Sponsored Links

2009 Holidays

With planning, realistic goals and a little bit of luck, stress-free travel with kids over the holidays can be a reality for your family. More


Caregiving