CORRECTION: This article has been amended to correct an error. Federal legislation, enacted in May 2009, provides that tenants of a foreclosed property must be given at least 90 days notice before they can be evicted.
Q: We are in preforeclosure renegotiation of our first trust deed loan on our rental home. The loan on this investment property was a low teaser rate for the first two years but now the interest rate has been adjusted higher and our payments have increased by several hundred dollars per month.
We actually would have been OK with the higher monthly loan payment, but the rental market in our area has also been hard hit. There are so many vacancies that we had to lower the rent after the last vacancy. So the lower rent combined with the higher expenses means we have to invest additional cash each month and we are quickly depleting our savings.