Occupants of Houses for Rent Gets Backed Up by Congress
The Congress is set to make a change in foreclosure laws, as they move for renters in foreclosed properties to be protected from being homeless. In several states across the country, such as Illinois and Missouri, landlords of houses for rent do not have the obligation to notify the occupants of their houses in case of a pending foreclosure.
However, that is about to change now, as both the US Senate and the US house passed different measures aimed at protecting occupants of rental homes. The passed laws state that an existing lease should survive a foreclosure, unless the new owner decides to live in the foreclosed house. In such a case, the occupant should be given at least 90 days to look for a new house and move out.
According to Mira Tanna, the Metropolitan St. Louis Equal Housing Opportunity Council’s assistant director, this move would be able to protect people who had zero rights before. Sheila Crowley, the National Low Income Housing Coalition’s president, further adds that this would bring a big change in the renting area.
Melissa Schratman, a 28-year old renter, recently moved out of her rented apartment, losing hundreds of dollars worth of security deposit. Her rental home recently faced foreclosure, so she had no choice but to move out. According to her, the situation was nerve-wracking and caught her in a very difficult state.
There are a lot more other people that have the same situation as Schratman. The new proposed rules are going to be a lot of help to renters. According to RealyTrac, there are around 5,000 houses for rent that are already bank-owned in St. Louis. According to Bill Ratcliff, the Missouri Bankers Association’s executive vice president, they would need to look at the situation even more closely now. What is happening now in Missouri is a lot different from the moves of the Congress and the Senate.
These measures in the House, which are part of housing bills and larger mortgage, are now set to be reconciled between the Senate and House negotiators. Supporters and other advocates are now expecting President Barack Obama to support the measures. If these laws get approved and enacted, renters would have more peace and would be protected from being kicked out of the houses for rent in which they live in. the country has been continually experiencing changes in the housing industry, as measures are done to alleviate the situation of homeowners, as ell as of renters.
