Hmmm... I hope the bank doesn't get this through the court. Because if they do, I find it unlikely they'll be the only bank who'll start doing this. It will set a precedent.
I think you'll find it's more likely that the banks will use it when they need to, rather than every time someone defaults. But I agree with everything Tobily has said too. It's not a good path to go down. I think an additional letter to the real estate institute requiring them to clarify whether or not they will suggest that agents verify the financial position of all landlords before renting out properties is in order too.
ETA: I looked up the story in full and it seems the landlords in question did not declare to the bank that the properties were being rented. I take it this is a requirement when you take out a home loan? So perhaps this will apply only when a landlord neglects to inform the bank. In which case, can renters ask for proof that any property with a mortgage is registered as such with the bank?
Anyone know the situation in other states?
Last edited by Jennifer13; October 26th, 2011 at 12:57 PM.
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