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    drgrover01's Avatar
    drgrover01 Posts: 1, Reputation: 1
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    #1

    Dec 20, 2006, 10:58 PM
    Renter eviction due to owner foreclosure
    I am currently renting a house through a property management company in Dallas, Texas and have 2 months left on our lease. I always pay rent early. I just found out that the owner of the property is apparently not paying their mortgage and may be going into foreclosure. I do not have any formal notication yet nor does the property management company.

    What are my options?

    If the owner does foreclose will banks typically negotiate with the renter to maintain income on the propery?

    Thanks for your advice.

    Randy
    Cvillecpm's Avatar
    Cvillecpm Posts: 553, Reputation: 28
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    #2

    Dec 21, 2006, 07:22 AM
    Honor your lease, pay your rent, find another place and move at the end of your lease. You have no PROOF the mortgage is not paid and if you don't pay your rent, you risk being evicted and having your credit ruined.
    woojer's Avatar
    woojer Posts: 15, Reputation: 1
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    #3

    Dec 31, 2006, 04:00 PM
    I'd like to comment to "credit ruined". This may not at all be the case since there will either hve to be ajudgment against the Tenant that is reported by one or all credit agencies or the Landlord would report. In my expereince, it is more often than not there is no reporting.

    Credit is rarely ruined over one, small non-payment incident, back off with all of that. :mad:
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #4

    Dec 31, 2006, 05:20 PM
    Yes, start looking for a new place. If you have not been officially notifed you probably have at least 2 months. Continue payiong your rent as always.

    Generally a foreclosure cancels any leases. The creditor that forecloses generally does NOT want to be a landlord. They want to sell the house as quickly as possible. Selling with a tenant will be harder.

    You should have enough time to find a new place.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #5

    Dec 31, 2006, 06:20 PM
    I will agree , you first have a legal contract that you are obligated to continue paying, who knows the owner may file chapter 13 and renew his loan, or the gosip you heard could be wrong.

    At the end of your lease you can decide to stay or move.

    Now if they do forclose it will take some time to do the foreclosure so most likely you have two months still. But once they do forclose, the new owner on a foreclosure has no legal obligation to honor your lease.

    And you can't really tell what the new owner will want to do. If the new owner is just wanting to sell it, they will want it empty to repaint, and remodel to sell for the highest price.
    Cvillecpm's Avatar
    Cvillecpm Posts: 553, Reputation: 28
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    #6

    Jan 1, 2007, 02:01 PM
    Woojer - As a subscriber to a credit reporting service, I can place negative comments on tenant/creditors credit report. The tenant/creditor can question the entry on the report and ALL I have to do is fill out a one page form that the rent is deliquent.

    Yes, a recorded judgement goes onto the credit report as do "accounts" that go "to collection".

    It amazes me that tenant think they can skip on their and then call me crying 6 months later when they want to buy a car and can't get financing.

    Landlords are CREDITORS.
    woojer's Avatar
    woojer Posts: 15, Reputation: 1
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    #7

    Jan 1, 2007, 06:18 PM
    Quote Originally Posted by Cvillecpm
    Woojer - As a subscriber to a credit reporting service, I can place negative comments on tenant/creditors credit report. The tenant/creditor can question the entry on the report and ALL I have to do is fill out a one page form that the rent is deliquent.

    Yes, a recorded judgement goes onto the credit report as do "accounts" that go "to collection".

    It amazes me that tenant think they can skip on their and then call me crying 6 months later when they want to buy a car and can't get financing.

    Landlords are CREDITORS.
    You are one of a few if you do report. Credit file disputes are simple matters and you and the reporting agency are under Federal and Statuotory laws, very complex ones, that that will require a heck of a lot more than a single piece of paper to meet their requirements if a creditor disputes your filing. If you do not verify and the reporting agency does not validate te debt with precision when dispted, a knowledgeable creditor will have your file (tradeline) easily deleted. You are not allowed to place negative "comments" only allowed to submit your information in proper form as per the credit reporting agency.

    Recorded judgments do not automatically find their way into the creditor's report unless either the credit reporting agency (CRA) scans and finds that judgment in very particular form so that it recognizes who the judgemnt is against and which creditor's report to place it. This requires your attorney or you to be very explcit and detailed in filing the judgement with the approprate information.

    If you do not believe me,then I suggest that you take a few months, yes months, and read here...

    CreditBoards.com - Credit Help, Credit Repair Tips, News, Forums

    ... as I have and you will see that not only are you incorrect, that if you are not exact, when faced with a tenant with knowledge of how the CRA process works, all your work will go for naught.

    You do have one thing in your favor. 97.5% of tenants have no clue how the creit process works, how it can be worked in their favor either.

    Credit, sadly, is a game, rules set by law, CRAs and FICO. If you know the rules, you can almost always find ways to clean out the most awful of credit reports and scores.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #8

    Jan 1, 2007, 06:29 PM
    Quote Originally Posted by woojer
    ...as I have and you will see that not only are you incorrect,
    From where I sit both of you are correct. A landlord is a creditor and CAN file a report with a credit bureau if a tenant doesn't pay up.

    Yes they have to be able to document and support their report in case of dispute. Any creditor has to. And yes most landlords don't do it, mostly because they don't have the resources.
    woojer's Avatar
    woojer Posts: 15, Reputation: 1
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    #9

    Jan 1, 2007, 09:12 PM
    Quote Originally Posted by ScottGem
    From where I sit both of you are correct. A landlord is a creditor and CAN file a report with a credit bureau if a tenant doesn't pay up.

    Yes they have to be able to document and support their report in case of dispute. Any creditor has to. And yes most landlords don't do it, mostly because they don't have the resources.
    All above is correct, no dispute from me.

    What is and for evermore be incorrect is this statement:

    "....if you don't pay your rent, you risk....having your credit ruined."

    Simply, this type of bullying tactic by Original Creditors that we see every single hour on the Crediboards needs to be examined for exactly what it is. A threat, untrue and out of ethical bounds in any business transaction.

    I do not for a minute advocate walking away from one's obligations nor will I advocate with my silence the indicated misuse of the credit reporting system to implant fear where truth should exist.

    Tenants should pay, landlords should use every legal means to protect their property and their income. Neither should stoop to the use of malicious untruths to forward their goals.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #10

    Jan 2, 2007, 07:12 AM
    Granted it may be a bullying tactic, but how much other leverage do landlords have? Why should it be incorrect, even wrong, if a tenant is overdue in paying their rent that this information shouldn't be noted in a credit report. I've gone through periods of unemployment and tight money, but the one bill I never shirked on was for housing. If someone is late paying their housing bill, then I sure wouldn't want to lend them money.

    P.S. You might want to delete the duplicate post.
    woojer's Avatar
    woojer Posts: 15, Reputation: 1
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    #11

    Jan 2, 2007, 02:14 PM
    [quote=ScottGem]Granted it may be a bullying tactic, but how much other leverage do landlords have? Why should it be incorrect, even wrong, if a tenant is overdue in paying their rent that this information shouldn't be noted in a credit report. I've gone through periods of unemployment and tight money, but the one bill I never shirked on was for housing. If someone is late paying their housing bill, then I sure wouldn't want to lend them money.
    Quote]
    Landlords have much more power under the law than tenants evidenced by the fact that Tenant Rights and movements have sprung up in every state.

    It is not incorrect to file a proper report on a non paying or delinquent tenant's CR, never said that. It is however incorrect to make the statements as I have disputed re: "credit tuined" and, yes, it is a bullying tactic that, as posted above, is also inaccurate.

    Landlords getinto the leasing business should be fully aware of the laws, the consequences and the p[itfalls. Too may aren't and many of those resort to these kinds of false, bullying tactics when they find themselves over their head in the leasing business.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #12

    Jan 2, 2007, 05:49 PM
    Actually, landlords don't have as much power as you think. If a tenant does not pay the rental due then the landlord can evict. During the time it takes to get an eviction the landlord is losing income. Once the eviction is processed, the landlord has to sue to obtain a judgement. They then have to go through the same hassles to collect as any creditor.

    Are you saying that a landlord reporting a late paying tenant doesn't affect the tenant's credit rating? Maybe saying it will be ruined is a little over the top. But so is your reaction to it. At least In my opinion
    woojer's Avatar
    woojer Posts: 15, Reputation: 1
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    #13

    Jan 2, 2007, 06:09 PM
    Quote Originally Posted by ScottGem
    Actually, landlords don't have as much power as you think. If a tenant does not pay the rental due then the landlord can evict. During the time it takes to get an eviction the landlord is losing income. Once the eviction is processed, the landlord has to sue to obtain a judgement. They then have to go thru the same hassles to collect as any creditor.

    Are you saying that a landlord reporting a late paying tenant doesn't affect the tenant's credit rating? Maybe saying it will be ruined is a little over the top. But so is your reaction to it. At least IMHO
    As you know, laws vary from state to state but not much in the South. A landlord can hassle the hell out of a tenant, showing up frequently with notice, refuse to repair, and I have never seen a lease that isn't weighed heavily to the landlord and statuotory law. Not saying any of this is wrong, but it is th truth.

    My reaction, to you perhaps, may be over the top but I deal with credit issues on a daily basis and often I hear landlords using this "i will ruin your credit" tactic which, in 95% of the cases, is entirely untrue. Can a collection or a report of delinquency or judgment affect a FICO, certainly, but the plain fact is it will not ruin your credit and, if knowleadgeable, can have no or little effect at all.

    It is true about lost income, etc but hey that's the business you got into. Factor it into the income equation, everyone in business has bad debt. So are legal fees, collection costs; does the baker complain about having to buy flour? :eek:

    Being a landlord is running a business and every business has its issues.
    excon's Avatar
    excon Posts: 21,482, Reputation: 2992
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    #14

    Jan 3, 2007, 07:37 AM
    Quote Originally Posted by woojer
    What is and for evermore be incorrect is this statement:

    "....if you don't pay your rent, you risk....having your credit ruined."

    Simply, this type of bullying tactic by Original Creditors that we see every single hour on the Crediboards............ Neither should stoop to the use of malicious untruths to forward their goals.
    Hello woojer:

    The term "ruined" is subjective. I think a scratch on my shiny new car "ruins" it. From my point of view, it does. Who are you to say it doesn't?

    A FICO score that goes down with a negative entry could be considered "ruined", certainly if a credit grantor turns someone down for a loan because of it.

    Malicious untruths?? Bullying?? Nahhh, not even close. On these legal boards, precise use of the English language makes a BIG difference.

    excon
    woojer's Avatar
    woojer Posts: 15, Reputation: 1
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    #15

    Jan 3, 2007, 11:03 AM
    Quote Originally Posted by excon
    Hello woojer:

    The term "ruined" is subjective. I think a scratch on my shiny new car "ruins" it. From my point of view, it does. Who are you to say it doesn't?

    A FICO score that goes down with a negative entry could be considered "ruined", certainly if a credit grantor turns someone down for a loan because of it.

    Malicious untruths???? Bullying??? Nahhh, not even close. On these legal boards, precise use of the English language makes a BIG difference.

    excon
    When a Landlord uses the bully tactic of claiming to "ruin your credit", he's not talking about scratching it, or denting it, he is talking about damaging it in a malicious way. You may think otherwise that is your privilege. I'll stay with the known definition of ruin

    ruin - Google Search

    And it appears that several thousand others would agree with me. Malicious untruths, bullying, yeppers, that is exactly what the poster was doing when he falsely (untruth) claimed to be able to ruin (malicious) the tenants credit.

    Since precise is your agenda, take a look at these precise definitions.

    malicious: Definition, Synonyms and Much More from Answers.com

    untruth: Definition, Synonyms and Much More from Answers.com

    bully: Definition, Synonyms and Much More from Answers.com

    If you had read my other posts you would know that I am well educated in bullying tactics, the use of the lie for malicious and self-serving reasons. Go back, read, return.
    Cvillecpm's Avatar
    Cvillecpm Posts: 553, Reputation: 28
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    #16

    Jan 3, 2007, 11:16 AM
    In 20+ years, I've NEVER had a tenant dispute an entry of mine on their credit report. They know they owe the money. 85% of the time I have a judgement with an abstract of judgement recorded in our county recorder's office and YES, these judgements are now available ONLINE so people actually coming in and looking for judgements are no longer necessary.

    INFORMATION is power and I disagree that most landlords don't utilize their credit reporting capability... just check some of the landlord websites. The fact that the OP is renting from a management company almost guarantees that their credit can be reported if it is not reported automatically.

    Many property management interactive websites have screening and reporting capabilities with 3 mouse clicks once an applicant becomes a resident

    VIVA LA INTERNET!
    woojer's Avatar
    woojer Posts: 15, Reputation: 1
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    #17

    Jan 3, 2007, 12:24 PM
    Quote Originally Posted by Cvillecpm
    In 20+ years, I've NEVER had a tenant dispute an entry of mine on their credit report. They know they owe the money. 85% of the time I have a judgement with an abstract of judgement recorded in our county recorder's office and YES, these judgements are now available ONLINE so people actually coming in and looking for judgements are no longer necessary.

    INFORMATION is power and I disagree that most landlords don't utilize their credit reporting capability.....just check some of the landlord websites. The fact that the OP is renting from a management company almost guarantees that their credit can be reported if it is not reported automatically.

    Many property management interactive websites have screening and reporting capabilities with 3 mouse clicks once an applicant becomes a resident

    VIVA LA INTERNET!!
    Agree on the VIVA! No doubt you haven't had a tenant dispute, the entire credit process is a mystery to 98% of the populace. Including attorneys who are supposedly experts in consumer affairs. :eek: True about prop mgmt company software as well.

    Knowing that money is owed does not preclude disputing a tradeline. The credit/FICO game is just that, a game and there are thousands of people who should have lousy credit who are running around with millions, yes I said millions, of $$$ in credit, lines of credit, credit cards. Dispute (verification and validation of debt in particular) is the primary offense/defense in cleaning up bad credit whether it is deserved or not.

    For instance, you owe X to Y. Y sells the debt to Z. Z calls @ all hours (violation of law). To get Z to back off, you make Z jump through hoops by having to show their contract with Y and then going back to Y to get the debt verified. Original signatures, etc. The CRAgency (EQ, Ex, TU) has to oversee this process and in 30 days if Y and Z have not performed according to law, No matter whether you owe it or not, CRA has to delete the entry. If they don't, you file in magistrates and CRA pays $1,000 to you and then has to delete. :)

    Want to show good credit to your Landlord? Simple, dispute all the baddies on your report and while they are in dispute, they have to drop off your report. FICO soars. :rolleyes:
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #18

    Jan 3, 2007, 12:31 PM
    Ok, lets not forget that this thread started with a question from a member. It has now gone far afield (I'm also at fault in that). I suggest that if anyone wants to continue this discussion they open a new thread for it.

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