Normally it's the renter who needs to prove their creditworthiness to the landlord. But with the current state of the housing market, it may be time for the landlord to prove to the renter that their credit is not in the toilet. With so many homeowners going into foreclosure each and every month at outstanding numbers, why shouldn't they have to prove it? According to RealtyTrac, 225,101 homeowners filed for foreclosure last month alone.
Many renters are finding themselves out on the street even after being a stellar tenant. What's going on is many landlords are finding themselves not being able to pay the mortgages on their rental properties, so they find a dependable, unsuspecting tenant to rent the place out to for about a year. But instead of paying the mortgage with the tenant's money every month, they pocket it, leaving the mortgage to go unpaid. Then one day the renter gets a notice in the mail or a knock on the door ... and it's not the Avon lady. It's the bank, and they want their property back.Renters don't always think to question the landlord about whether or not they are current on their mortgage. But I feel that landlords should be required to prove to the perspective renter that they are paying their mortgage each and every month. And if they can't, well, then they shouldn't be able to rent out their property.Having landlords who aren't paying their mortgages certainly is not anything new, but it is something that's becoming more and more common given the current economic situation that so many homeowners are facing. Renters have rights, but when trying to rent a place, the last thing any renter wants to do is upset the landlord. But in this market, if they don't want to find themselves homeless, they might need to confront their potential landlord. After all, it's their own well-being they are protecting.As a renter, make sure to demand landlords to prove their financial situation before renting their property.
Renee Porsia is an expert real estate broker, author, real estate instructor with RE/MAX Action and blogger at www.reneeporsia.wordpress.com.