Agent

Can foreclosure buyer raise rents on tenants?

REThink Real Estate

Q: I owned a rental property that was fully occupied but still underwater by several hundred thousand dollars. I put it on the market as a short sale, and got several offers, including one from a buyer who ended up withdrawing her offer before I accepted any of them. In the end, the bank did not respond to my short-sale application in time to stop the property from going to auction, and I lost it to foreclosure. In the months between the time I listed the place as a short sale and the time I lost it, all the tenants' leases came up and I signed them to new leases, with slightly lower rents based on the fact that I knew the short sale and foreclosure process was very disruptive to their lives, with all the showings and such. The woman who had withdrawn her short-sale offer was the same one who ended up buying it from the bank at the auction. Now, she is upset and harassing me and the tenants because the lease terms changed between the time she saw the short-sale listing ...