Ethical or Not? – Landlord Collecting Rent on Property in Foreclosure

Many of us have heard of landlords collecting rent while their property was in foreclosure. Usually, it’s in a news report or perhaps you’ve heard it in person from a buyer or through a friend or acquaintance.  I was surprised to hear an attorney take the landlord’s side recently.

While it seems distasteful in the least and dishonest at the worst, it is not illegal.  Because the landlord is still the owner through the end of the redemption period (here, in Michigan), they have the right to collect all rents due – at least until redemption expires and they are no longer the legitimate owner.  Hmm.

I suppose that if they had been upfront with their tenant/lessee, that’s one thing.  Maybe the tenant would even get an extra month or two of accommodations for free out of the deal.  I recently had the experience of talking to a tenant that had been given a ‘great’ rental price for a two bedroom condo, just a couple of months before the redemption period expired.  He was in a pinch, on a budget, and this was practically a gift from heaven.  Until he found out that the condo had been foreclosed upon and he was asked to vacate.

So that landlord smelled the coffee, rented it cheaply and made a few bucks on it before losing it.  Again, not illegal, but it sure seems like a large misrepresentation to me.  Certainly it is a major omission. 

What do you think? Do landlords have the duty to disclose a pending foreclosure to tenants or is it optional?

graphic courtesy of hyena reality/freedigitalphotos.net

Senior Real Estate Designation Received

I’ve worked in real estate for 16 years and have had my share of transactions with elderly clients.  Because of the graying of our population, I decided to ensure that I will always do the best for my clients in the older age groups. I have recently completed a course of study and been accepted into the Senior Real Estate Specialist Council, a group that has knowledgeable and passionate members serving the 50 and older market.

If you know somebody that needs this kind of specialized real estate knowledge in my market area, it would be my privilege to assist them. Likewise, I know that often people are reluctant or not ready to make a major life change but may still have questions.  I am always willing to be a resource for area residents, their families and their friends.

New Listing - 1687 Andover, Howell 48843

You'll love it here!  Paved roads, sidewalks, and Hartland Schools.  Close to shopping and the US-23 interchange at M-59, commuters to Ann Arbor find this neighborhood very convenient.

Gorgeous, well-maintained bi-level home in Millpointe of Hartland features over 1700 sq ft of living space with some finished walkout space in the lower level.  Rear of lot backs to a wooded area for privacy and nature views. Vaulted ceilings, gas fireplace, hardwood floor in dining area.  HOA dues only $110/quarter.

Open house Saturday, July 20th, 1-3 pm.  See the listing sheet here.  MLS# 213070592

Intentional Underbuilding Conspiracy?

I came across this article in Realtor Mag’s Daily News section today.  Citing an article from the Phoenix Business Journal, it states that, “New-home builders don’t appear too anxious to help meet the demand.” 

To be fair, they do mention the lack of qualified tradesmen and the fear of another housing bubble that is keeping builders cautious.  It also suggests that perhaps this is being done to keep prices higher in view of short inventory.

Personally, I can’t speak to the desert Southwest’s conditions, but in this area (West Oakland and Livingston), it appears that builders are pretty active - and they seem to be ramping up. But that takes time.  I have heard that there is difficulty finding qualified tradesmen, and that they are shopping work for the best rates – but who wouldn’t do that?

And in SE Michigan there are still not a lot of lenders doing construction loans. That means if you’re not a pretty good sized builder with a lot of office staff you’re taking time to try to find finance solutions for your potential clients instead of working on new homes.

I don't buy the premise that new builds are low just to keep prices up, and I'd have preferred a less dramatic title. Something like, “Why Are So Few New Homes Being Built,” or something less paranoid.  What do you think?