Apparently a Chicago Sheriff has seen enough innocent tenants tossed out in the street. My understanding of the situation is that many of these tenants continued to pay their rent each month and were surprised to find out that the landlord has lost the house to foreclosure.
Instead of working with the tenant paying rent in the property the bank prefers to foreclose, evict the tenant and take the property back on its books. I could be wrong but that sure seems like a strange way to do business especially with so many bank failures taking place and bank owned properties already on the market.
It seems to me that a smarter way to do things would be to keep the tenant in the property paying rent and then put the property up for sale as a cash flowing rental.
If the bank doesn’t want to deal with the hassle of maintaining a property they could always work out a rent to own situation with the tenant. While its true that this would not work for multi-unit properties this would be a great solution for single family residences. After all the tenant is already in the house and its unlikely they would want to move as long as the house is in good condition. Why not help them buy the property instead of evicting them and placing another property on the banks books?
I think that if banks want to survive during these tough economic times they’ve got to get creative. Simply tossing tenants out on the street and foreclosing on their homes is not going to work in this economic environment. Maybe this Chicago Sheriff is on the right path what do you think?
“These mortgage companies only see pieces of paper, not people, and don’t care who’s in the building,” Dart said.
— Justin of Vizionkc