Tenants, the Forgotten Victims of Foreclosure

That great bargain rental rate in the fabulous new condo could become a major headache for the tenant if the property goes into foreclosure during the term of the lease. It is wise for anyone renting property in the present market to keep the possibility of foreclosure in mind when shopping for a place to live. Certainly, if the tax record for the property contains a lis pendens reference; the matter should be questioned and resolved by the landlord prior to executing a lease. Keep in mind that mortgage and other obligation delinquencies may not be reflected in the tax record so it shouldn't be relied upon as the sole source of due-diligence. Renters may find that engaging an attorney to help protect advance rents, security deposits and lease-obligations is money well spent, especially in these turbulent times.