New Laws Protect Tenants Against Forclosed Homes

Tenants across the country are being forced to leave the homes they rent due to foreclosure.

According to the Seattle Times, "The number of foreclosures on all types of houses in the state is up nearly 50 percent from a year ago and rising, driven by unemployment and a weak housing market." A national group estimates that a whopping 40% of these foreclosed homes are rented.

But new state and federal laws are to be enacted to protect tenants who find themselves in this situation.

Prior to the new law, tenants who were told they had to move due to foreclosure had just 20 days after the sale to move out-- however many moved in just a few days in fear of losing their possessions. And what's more is that the owner was not required to provide notice before they filed an eviction lawsuit.

The new federal law which went into effect May 20th requires tenants to continue to pay rent until 90 days after the sale of the foreclosed home or until the end of their existing lease, whichever is longer.

The new state law which goes into effect July 26th doesn't require tenants to pay rent to the new owner, does not require the owner to honor the existing lease, and tenants must move out within 60 days of being notified of the sale.

Although generally, federal law trumps state law. But experts say in cases where the laws conflict, the provision that provides tenants the greatest protection should apply.

A total of 23,705 homes foreclosed in Washington State in 2007, up 27.95% from 2006.

PEMCO news release addresses renters insurance

PEMCO Insurance issued a news release today concerning how many Washington residents carry renters insurance, and how many people inventory their personal property. Census data shows 35% of Washingtonians rent, and of those, a recent PEMCO Insurance Northwest Poll revealed 58% do not have renters insurance. This is important because renters insurance is so affordable – typically costing $125 to $150 per year – that more people should buy it. The poll also revealed that one in three homeowners and renters have never inventoried their personal property.

U.S. Department of Justice's Bureau of Justice Statistics says rented households were burglarized at rates 79 percent higher than owned households.

Rented households experienced 210 property crimes per 1,000 households nationwide, while owned households experienced only 146 property crimes per 1,000 households in 2001, the bureau reported.

Thank you to PEMCO Insurance Company and RealtyTimes.com

Take Inventory and Save Time on Claims

By anticipating a claim, you could save yourself time and money! This website makes it easy: KnowYourStuff.org. It allows you to upload photos, receipts, appraisals, and descriptions for free.

Features include taking inventory room-by-room and also points out what to take inventory of.

Most importantly, all your information is stored in a secure location online in the event that your home is destroyed-- making it easy to get your information from anywhere at anytime.