12-06-2010 HRA MIN - Laserfiche WebLink

Home Browse Search

Housing & Redevelopment .Authority Minutes December 6, 2010 Page 2 Mr. Eichenlaub stated that tenants should not panic because they do not have to move out • immediately, and actually have quite a bit of time before they have to be out He explained that every=thing stays the same during the 6-month redemption period and the tenant continues to pay rent. After six month, the bank is the owner of the property and the lease becomes month-to- month. The tenant has 90 days to move out if the lease was originally month-to-month and if the lease was aone-year lease, they may stay for the remainder of the lease. Chair Wilson asked how tenants can contact the HOME agency he represents. Mr. Eichenlaub stated that their contact information is included with the paperwork provided in the sheriff's sale notice, and can also be found on the Internet, through the United Way, and through various counties and cities. Ms. Deckert stated the information is also being provided during the community foreclosure forums, mass mailings, the city's foreclosure outreach materials, and online on the city's website and social media sites. Commissioner Moon asked what happens when a lease ends. Mr. Eichenlaub stated that the lease automatically becomes month-to-month and tenants must be given/or be given proper notice. Chair Wilson asked what type of rental units are most often in foreclosure. Mr. Eichenlaub stated that most are single-family homes or duplexes. He explained that there are more and more "accidental" landlords, due to people giving up their homes because they cannot afford to stay in them and renting them out. He stated that he also sees 4, 6 and 8-plexes and larger buildings in foreclosure. Chair Wilson asked if there are any rentals in Elk River in foreclosure. Mr. Eichenlaub stated there are in Sherburne County. He noted that ten percent of their total calls are foreclosure calls, and 15 - 18 percent are from Sherburne County. He noted that Wright County is also very high. Ms. Deckert asked if Mr. Eichenlaub had any advice for prospective tenants. He suggested that they • try to do their homework; call the sheriff s office to see if there is a pending sale. He suggested that tenants could ask for a separate clause in their rental agreement for a discount on the rent in the event of a foreclosure. Chair Wilson asked what are most tenants doing when they find out a home is going into foreclosure. Mr. Eichenlaub stated that most banks want the home empty when they take over so they can resell as quickly as possible. He stated banks may do a "cash for keys" offer, which is essentially relocation assistance, if the tenant is willing to get out sooner. Commissioner Toth stated he felt it would be difficult for a tenant to find out if a foreclosure is likely to happen. Mr. Eichenlaub concurred, stating that other than finding out if there is a sheriff's sale pending, they could try to find out if the mortgage is in arrears. He noted that most of this information is private until time of a foreclosure. Ms. Deckert stated that Sherburne County website has information regarding vacant or abandoned property which has gone through a sheriff's sale. She asked what tenants should do if they find out a home is in foreclosure. Mr. Eichenlaub stated that they should plan ahead, knowing that it will take at least the six months redemption period before they would have to be out. Chair Wilson asked what is the availability of rental housing. Mr. Eichenlaub stated that the number one issue is that it is expensive to move. The tenant may be able to save some money, since they likely will hot have to pay rent for the 90-dap period they have. But, he noted that most rentals . require first and last month's rent plus a security deposit. He stated that is difficult to get back a security deposit on a foreclosure, even though it is supposed to be returned or transferred on. A • tenant can pursue filing a claim in small claims court.