Foreclosure and Leases

The foreclosure crisis has hit SWFL extremely hard making life difficult for owners, tenants and property managers alike. Many property managers are receiving frantic phone calls from their tenants who are concerned about the status of their lease. As a property manager, some important facts to remember are:

The Lis Pendens does not mean that the property is in foreclosure, it is the document filed prior to the foreclosure action. The Lis Pendens is the red flag for tenants because a copy of the filing is sent to the unit address.
A bank that forecloses on a property does not have the authority to post a ten day notice to vacate. The Sheriff’s Department is the only agency with the authority of the courts to evict a tenant. Any document from the bank that demands the tenant to leave does not have to be followed by the tenant.
Tenants still have to pay rent if the property is going through a foreclosure as their lease agreement has not changed!

Many tenants will try to use the foreclosure as a means of getting out of their lease agreement. This argument has no legal basis. Unless there is a clause in the contract that releases the tenant, they have to pay their rent as usual. If the tenant stops paying rent, the landlord can move forward with an eviction. Many tenants will try and claim the foreclosure as a justifiable means of vacating, but Judges in Florida will not honor this defense.

By staying current on foreclosure issues and legalities, good property managers can stay one step ahead of their tenants while providing their clients with the best service possible.

For more info about Fort Myers Property Management please visit the link http://www.naplespropertymanagement.net/