Renting out a property is a common method used by the people across India for getting an additional income in an easy manner. In fact, it is quite common for the landlords to rent out a property while they are still repaying the loan that they might have taken for purchasing or building the property. Now let’s say, one fine morning you are relishing your coffee in your 1 bhk for rent in Bangalore and you learn that your landlord has received a foreclosure notice because he could not repay the amount to the bank or financial institution.
What will get cold first? Your coffee which you have ignored due to the shock or your body on hearing the bad news?
Don’t Feel Helpless. Look Out for Professional Aid.
The first and the most major concern that you face when your landlord gets a foreclosure notice is the fear of being evicted from the property almost immediately. The best way to get a reliable and permanent solution to this problem is by seeking the advice and guidance of an expert lawyer dealing with real estate issues.
Don’t Panic but Understand the Situation
In most cases, foreclosure means that the property will be taken over by the bank due to inability your original landlord to pay back the loan. This can lead to two different situations. First, the bank can appoint someone to manage the property until a suitable buyer is found to recover the loan. In this case, you can continue living in the same 2BHK in Hyderabad on rent and pay it to the bank itself. Alternatively, the bank can put up the property up in the market for immediate sale and serve you with an eviction notice. In either case, it is advisable for you to start looking for an alternate accommodation as soon as you learn about the foreclosure.
Many times, the bank might already have a buyer ready to buy the foreclosed property. In this case, you can try talking to the new owner for he may or may not allow you to continue living in the same property. However, you need to understand that in case the new owner allows you to stay, he might not necessarily follow the same terms of the rental agreement that you had with your previous landlord. In that case, it is highly advisable for you to discuss the new terms with them in detail and also sign a new rental deed so as to avoid any problems at a later stage.
To Wrap Up
Depending upon the provisions of your original rental deed, you might seek financial reprisal for the economic and mental and emotional stress that you face due to foreclosure. However, any such step should be taken only after discussing the pros and cons of the same with your trusted lawyer. It is also advisable to take up any such legal battle only after you have made alternate accommodation arrangements of your choice.