Renters should check to see if landlord is in trouble
A little while ago in her Daily Herald column, business writer Anna Kukec addressed an issue regarding foreclosures that should concern anyone currently renting a residential property. This issue is playing out in Cook County, where the sheriff has recently taken a somewhat interesting position regarding tenants and foreclosure.
The specific issue Kukec and the Cook County sheriff are addressing can be illustrated by the following scenario: Mr. and Mrs. O'Toole and their four children rent a single-family home from Howard the landlord. Howard incurs financial difficulties and uses the O'Toole's rent money to pay other expenses, thereby putting the rental property mortgage in default. The rental property lender forecloses on the mortgage.
More often than not, the O'Toole's remain unaware of the foreclosure proceedings until one day, the sheriff knocks on their door, advises them that the bank now owns their rental property and they have 10 minutes to remove themselves and their belongings from the residence.
The Cook County sheriff recently announced he would no longer perform evictions on renters, though as of this writing, he is negotiating that position. Kukec's column informed readers of a new service provided by Baird & Warner to assist renters in determining if their property was subject to foreclosure proceedings. Given the number of current pending foreclosures and the fact that no one wants to open the door to learn that they must vacate their home in 10 minutes, I am repeating this information here.
The service is free. Go to bairdwarner.com and click "property search" on the firm's main page, on the gray bar at the top of the page. You will be directed to a page called "property search choices." Scroll down to "rentals" and select "currently renting - check to see if your landlord is in foreclosure and you're at risk of being evicted." Hit the link, enter your address, city and ZIP code and you will learn if your property is currently in foreclosure.
In addition, you can sign up for a service that will notify you in the event the property goes into foreclosure in the future. The records are updated daily. Of course, if your landlord is behind on his or her mortgage but a foreclosure has not been filed yet, the property will not appear.
Renters who are aware that their landlords purchased the property they are residing in within the last few years should be particularly concerned. Many of these properties were purchased with little or no money down and are currently worth less than the landlord paid for them. In the event a landlord finds him or herself in a financial crunch, one of the first obligations to be pitched will be an underwater investment property.
Q. About a month ago, I made an offer on a townhouse. The listing agent told me that this was a short sale and we would need the seller's mortgage company's approval of the contract. I check with the agent every few days but she has heard nothing. How long does this usually take?
A. Welcome to the world of transacting in distressed properties. I'm sorry to report waiting a month to learn if the seller's mortgage company will approve the sale is nothing compared to what many purchasers and sellers have experienced.
All I can suggest is that someone who has been approved by the mortgage company to discuss this matter, keep in continuous contact with them, as files often times seem to be forgotten until someone calls.
• Attorney Tom Resnick's column appears every other week in Homes Plus. Send your questions to Tom Resnick, 345 N. Quentin Road, Palatine IL 60067, by e-mail to tdr100@hotmail.com or call (847) 359-8983.