The current recession is taking its toll on property owners. The economic boom in the 90s and early 00s gave a lot of people the confidence—and cash—to buy a few properties. Now, those very people are finding themselves upside down in their mortgages and unable to maintain their rental properties. That is leaving a lot of landlords and property owners facing foreclosure. In fact, more than 1/5 of the properties in foreclosure are rental properties, according to a study done earlier this year by the National Low Income Housing Coalition.

While renting seems like the safest option for many, there have been some surprises for renters in the U.S. Living in a property that is facing foreclosure has left some with an eviction notice posted to their doors. Tenants are being affected by the rising amount of foreclosures throughout Missouri and the rest of the Mid-West. Laws designed to help tenants, called the "Protecting Tenants at Foreclosure Act," allows renters 90 days before they have to leave the property. The new act even has a special caviat that allows tenants to stay longer if no one is prepared to buy the property.

But what help is available to landlords? If it is in the best interest of the landlord, a chapter 13 bankruptcy may help him or her fight to keep their property. Of course, keeping property will depend on each individual's situation. If the landlord has renters who can make their payments every month, they may be able to keep some, if not all, of their properties. It is important to keep in mind that if you are facing foreclosure, you may be in trouble with debt. In that case, it may not be the best decision to keep paying for properties you can no longer afford.If you know that you can't afford to keep paying the mortgages on your rental property or paying for their upkeep, it may be time to take a look at what you really need versus what you just want to have.

Any landlords facing foreclosure would be well-advised to talk to an attorney about their specific situation and the things in their lives that are important to them. If it is in their best interest to keep the property, then an experienced bankruptcy attorney can fight to help them keep it. Make sure you look for the best bankruptcy attorney in your area to have the most successful case.


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Castle Law Office of St. Louis, P.C. is a bankruptcy firm that helps people suffering under crushing amounts of debt get relief. We have offices in St. Louis, Missouri and Wentzville, Missouri. Visit us online at http://www.castlelaw.net or call us at 866-570-8484