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Some laws can be good.  Some can be bad.  When you are someone who is on the up-an-up and tries to follow all the laws and do the right thing, over-regulation can be a burden. I see a huge amount of regulation coming into investment properties.  This regulation will be to protect tenants who are up to date on their rent payments but living in a home going to foreclosure.  

My post on Friday talked about Sheriff Tom Dart in Illinois that is refusing to evict tenants from properties where the landlord was foreclosed. What he wants is to push the banks to give notice to the person living in the property that foreclosure is coming.  I agree with this as it can protect the tenant but I can see bigger issues it may cause.  First, there is the potential of a sale.  If a good tenant is in a property, one that pays their rent on time and maintains it well, the house will sell faster to an investor with a good tenant than empty.  You know that once a tenant receives word that a foreclosure is in the works, they are gone.   Second, and I am cynical here, there are always people who try to ride the system for all they can.  This gives tenant's one more weapon in their arsenal to not pay rent.

Tom Dart's stand seems to be contagious as a Genesee County Missouri Sheriff, Robert Pickell, is following suit.  He's started a moratorium for renters who are facing foreclosure.  Here is a link to the article. Anyone see a trend starting?

 Here are some links to articles on tenants who are being forced out.

This tenant in Philadelphia was taken for a ride by an investor who assumed the owner's mortgage.

This Wesley Chapel tenant moved into a property that was heading into foreclosure.

This Laguna Hills guy paid $30,000 in rent and the place in in foreclosure.

This article gives some good pointers on how to protect yourself from landlord's who may be facing foreclosure.

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