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5 Tips for Tenants Renting a Foreclosure Property

By U.S. News & World Report

The topic of foreclosure generally brings to mind stories of homeowners who have fallen on hard times and lose their family home to the bank. But there’s another important demographic being negatively impacted by foreclosures — tenants. Just like owner-occupied properties, when a landlord falls on hard times and can’t pay the mortgage, the bank forecloses and often becomes the new owner of the rental property, as well as the new landlord.

As tenants in this situation quickly find out, banks do not want to be landlords. Banks typically want to sell foreclosure properties as quickly as possible, and that means evicting tenants as quickly as possible.

[Read: 7 Things Renters Can Do to Recoup Their Security Deposit.]

Here’s what to do if you’re a tenant renting a property that is being foreclosed on.

Be proactive. If the property you live in is being foreclosed on, the bank or its attorney will likely begin sending notices to the property. If you receive these notices, contact the bank or attorney immediately to let them know you are living in the property. Also contact your landlord and ask questions to find out why the property is being foreclosed on, the status of the foreclosure process and what your landlord is doing to prevent the foreclosure.

It’s possible your landlord will be able to avoid the foreclosure by reaching an agreement with the bank, or possibly by filing for bankruptcy. Ask your landlord for regular updates to keep you informed on what is being done and how the foreclosure is progressing. If your landlord is uncooperative, you may need to check public records to monitor the foreclosure process on your own.

Know your rights. Foreclosure laws vary greatly from state to state. To understand and enforce your rights as a tenant, you need to know your specific state and local laws. These laws can help answer important questions, including:

— Are there any specific protections for you as a tenant living in a foreclosure property?

— What is the process for foreclosure and how long will it take?

— How long do you have to move out after the foreclosure is completed?

Some states, for example, have “just cause” laws that limit the reasons a tenant can be evicted and determine foreclosure alone is not just cause. Similarly, Section 8 leases can only be terminated for good cause, and foreclosure alone is not considered good cause. You may need to contact an attorney to help you understand and enforce your rights.

[Read: What New Fair Housing Guidelines Could Mean for You.]

Follow your lease. Until the foreclosure process is complete, your lease is still valid and enforceable. As long as you continue to pay rent and comply with all the terms of your lease agreement, you are entitled to remain in the property during the foreclosure process. If you fail to pay rent or breach the lease in some other way, your landlord has the right to file an eviction or other legal action against you.

On the flip side of that coin, your landlord is also obligated to continue following the lease even though the property is in foreclosure. If your landlord breaches the lease, you are entitled to file legal action in order to enforce your rights.

Note: Similar to living in a rental property that is being foreclosed on, tenants often wonder whether their lease is still valid if the owner decides to sell the property. It’s important to note that the owner selling the property is not the same thing as the property being sold at a foreclosure sale. Typically, a foreclosure sale automatically wipes out the rights of third parties in the property if those rights came into being after the mortgage — this includes leases that were signed after the mortgage was taken out. In a normal sale of property, the lease agreement is not terminated in most cases. The new owner becomes the new landlord and is obligated to follow the terms of the lease. As long as you, the tenant, continue to pay rent and comply with all the terms of the lease agreement, you are entitled to remain in the property until your lease term expires.

Be prepared. Once the property is foreclosed on and the transfer of ownership is complete, you will likely be required to move. In most situations, a foreclosure will terminate your lease, even if it wasn’t supposed to expire until months later. Fortunately, you don’t have to leave immediately. The length of time you have to move will vary depending on your state’s laws, but is usually somewhere between 30 to 90 days. The earlier you start looking for a new place to live, the smoother the transition is likely to be for you.

It’s possible that the new owner might offer you money to move out early — often referred to as “cash for keys.” You can agree to move out early in exchange for money, but you certainly don’t have to. If you decide to accept this type of offer, be sure to get the agreement in writing and that it is signed by all parties.

[Read: 7 Things You Should Know About Tenant Rights.]

Get help. Foreclosure can be a frustrating and stressful experience for tenants as well as homeowners. Following the steps outlined in this article can help, however the best course of action will vary depending on your specific circumstances. Contact an attorney licensed in your state to help you understand and enforce your rights.

Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice. Individual situations will differ and should be discussed with a licensed attorney. For specific legal advice on the information provided and related topics, please contact the author.

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5 Tips for Tenants Renting a Foreclosure Property originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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