Foreclosures, Unpaid Taxes Add Risk For South Florida Tenants

In South Florida, The Miami Herald reports:

• While South Florida's falling housing prices may favor renting rather than buying right now, the recent real estate bubble is also creating new risks for tenants. Plenty of homes and condos are available for lease because their owners can't sell them, giving renters a variety of options. The problem is that many of the owners may not be on steady financial footing. If they end up in foreclosure, tenants can be kicked out -- despite having a lease. ''That's happening. A lot of people are losing their homes,'' said Samira Ghazal, a Miami consumer lawyer. "They don't know if the landlord is paying the mortgage or not. Then they end up getting evicted.'' Even if they are not formally evicted, many tenants are forced to move prematurely, resulting in unplanned moving expenses and family disruptions.

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• It's hard to say how many tenants are in this situation. But what is clear is that tens of thousands of South Florida properties are in serious financial trouble. In Miami-Dade and Broward counties, more than 70,000 residential property owners failed to pay their 2006 property-tax bills, according to a Miami Herald analysis in November.

For more, see Tenants: Be aware of landlords facing foreclosure (Landlords have always asked potential tenants about their financial situation. But in today's housing market, renters may need to ask if potential landlords are facing foreclosure).

To find out if a South Florida landlord is facing foreclosure, see The Miami Herald: What to do before you rent (if link expires, try here) which, among other things, suggests:

• To determine whether a person has a foreclosure action filed against him: In Miami-Dade County, go to www.miami-dadeclerk.com/public-records/pubsearch1.asp. In Broward County, go to 205.166.161.12/oncoreV2/Search.aspx. Type in the person's name, select ''Lis Pendens'' (in Dade) or ''Foreclosures'' (in Broward) and click search to see if any documents come up.

This method isn't foolproof, especially if you're dealing with a sleaze bag who may be running a professional rent skimming / equity skimming operation but may be pretty helpful if you're dealing with an average homeowner or novice real estate investor caught in the real estate bubble and stuck holding a property that he/she can't unload.

For posts involving rent / equity skimming landlords who pocket rent and allow homes to go into foreclosure, go here, go here, go here, go here, and go here.

Go here for other posts related to the Miami condo market problem. equity skimming unwittingly epsilon delinquent tax problem