If you are getting ready to lease a home, townhouse or condo, read below so that you aren't a victim of the lessor's potential foreclosure
This week alone, I have received 2 calls from lessees who need to uproot their family from their current town home, since the home they are currently renting is going to be foreclosed on.
Imagine having dinner with your 3 and 6 year old and the sheriff comes to the door asking you for the taxes and/or the mortgage, or even better telling you that you have to move out today. 
Unfortunately, this scenario happened to one of my clients in Buffalo Grove, Illinois, an affluent suburb of Chicago. The lessees paid the rent on time, but their lessors never used the rent to pay their mortgage or taxes.
Since I do a lot of rentals in the area, my job is to protect the people I represent. If I represent, lessors, I do a background check on the lessees. If I represent, the lessee I need to of course protect their interests.
In order to protect your client if he/ she is the the lessee, and prevent them from being thrown out on the streets, or from being a victim of foreclosure, it is important to ask these questions prior to signing a lease or rental agreement.
1. How long has the house been vacant?
• If the house has been vacant for more than a few months, it is very possible that the landlord could be distressed and must get your first/last month rent and security deposit to catch up on the mortgage that may be past due. This is the first sign that there might be a problem.
2. Is the lessor currently behind on their mortgage payments?
• This is a direct question that sometimes might catch the landlords off guard, but in order to protect the tenant and to keep him from being victimized, it doesn't hurt to ask the Question!! If the landlord becomes defensive, that is a red flag and you may want to move on to the next property.
3.. Are the taxes current on the property?
• Not only does properties get foreclosed on because of non payment for the mortgage , non payment of property taxes can also cause a property to be foreclosed on. You can also check the tax records if you feel awkward asking this question.
4. Lastly, ask if you could pull the credit of the lessor.- Don't get me wrong, the first time I was asked this question about one of my lessors, I was taken aback and appalled that they were asking for my client's credit. My client was allowing these people to rent from us! However, after I have heard the problems lesses go through, I now perfectly understand and can sympathize. People want and need to protect their families from having to be a victim of foreclosure, Its a mess, the legal fees, double moving costs and lastly, its not fun to have to move out suddenly when the sheriff comes knocking on your door.
If you would like more information about the Chicago Northwest Suburbs,including Buffalo Grove, Lincolnshire, Long Grove, Vernon Hills, and Lake Zurich please do not hesitate to call me at 847-602-5435 or email me at info@buffalogrovehomes.com.
My websites, www.movetoVernonhills.com , www.buffalogroveareahomes.com and my blog www.judygreenberg.com will provide you all the information regardless as to whether you are a potential buyer, lessee or seller or lessor!
Good morning Judy,
I've heard of this happening and can see why a check on the landlord is indeed valid!
Judy, a sad state of affairs. Hard to believe some stories we hear in the real estate business. This is a good reminder. I dont do rentals, but this is good information to keep as a reference. Thanks,
This is great information Judy. It's a sad state of affairs when clients have to do a credit check on the landlord too! But, your point is very valid considering the times.
Dorie, Yes, it did happen to my client and I felt so bad
Rebecca, It is a sad state of affairs.
Craig, Yes, the first time the lessee's realtor asked me these questions about the lessor, I was flabbergasted and insulted. Now I do it all the time.
Dorie, Yes, it did happen to my client and I felt so bad
Rebecca, It is a sad state of affairs.
Craig, Yes, the first time the lessee's realtor asked me these questions about the lessor, I was flabbergasted and insulted. Now I do it all the time.