One aspect of foreclosure prevention that is rarely discussed here in Northern California and elsewhere around the country involves renting; specifically, holding onto your property by moving out of it yourself and becoming a landlord. A recent article in the New York Times examines this phenomenon of the 'accidental landlord', as well as offering tips for those finding themselves in such a situation.
More than a few California foreclosure prevention programs are out there: from the federal government's Making Home Affordable initiative to various - sometimes rather dubious - private schemes. Many of these focus on refinancing, or arranging California mediation or loan modification schemes. For some Bay area homeowners, however, it may be viable to move to a smaller, cheaper apartment while putting one's own house, condo or apartment on the market as a rental. As the Times outlines, this can create new and unforeseen problems for some: learning how to assess tenants, and how to deal with a landlord's responsibility for maintenance, for example.
Making the transition from owner-occupier to landlord also, however, entails significant changes in the way you approach such issues as taxes, government permits and relations with your own lenders. These are areas where the services of an experienced Bay Area foreclosure prevention law firm can be invaluable. Skilled legal consul is essential if this is your first experience as a landlord and should be a component of a business plan even for experienced property owners. A full-service San Francisco foreclosure prevention lawyer can advise whether becoming a landlord is a Walnut Creek foreclosure prevention strategy that makes sense for you.
New York Times: Resources for Accidental Landlords
