Foreclosure in Central City>Question Details

Gordo9, Home Buyer in Central City, Corpus...

CAN I GET A BANK OF A FORECLOSED HOME TO RENT TO OWN?

Asked by Gordo9, Central City, Corpus Christi, TX Wed Jun 15, 2011

CAN I GET A BANK OF A FORECLOSED HOME TO RENT TO OWN?

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7
Hello Gordo,

Traditionally, banks have not rented homes they own. That said, these are not traditional times and we are beginning to see inventive and outside-the-box thinking. The last thing investors/banks want is a negative return. We are beginning to see situations in Southwest Florida where banks are leasing/renting properties (in some cases to delinquent buyers) at competitive rates.

I cannot speak for your local market and recommend you find a local realtor/broker, especially one which represents banks in their listings and open a dialogue. What's the worst they can say, no?

Best of luck.

Dave
0 votes Thank Flag Link Wed Jun 15, 2011
No. Not from Bank of America.

As Dp2 suggests, you might be able to find an investor to work with you. However, you're in Texas. In the other 49 states, you wouldn't have much problem with a rent-to-own situation. Texas, however, severely limits that possibility.

There are ways an investor could work with you, probably by utilizing a land trust. To oversimplify, the investor would buy the property. He'd transfer it into his trust. You'd be added as a resident beneficiary. The land trust documents would provide that you'd pay rent to the trust. At some point (as specified in the documents) the property would be brought out of trust and you'd have the opportunity to purchase the property at fair market value. For more information, see http://www.landtrust.net.

Hope that helps.
0 votes Thank Flag Link Wed Jun 15, 2011
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
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Not likely. The banks do not want to be landlords or homeowners. The only time that I have seen tenants in bank owned homes is when the tenants had a legitimate signed lease in place before the foreclosure was completed.
However, I have seen some banks provide special financing options to buyers of their REO property. Perhaps you would be eligible for this.
0 votes Thank Flag Link Wed Jun 15, 2011
Don't ever rent to own. Not a good deal for you. You'll just loose your money in most cases.
Rent cheap as you can, save your cash for a year or two and then you'll be ready to buy.

In most cases banks are renting foreclosed homes, unless you were already renting it when it got foreclosed.
0 votes Thank Flag Link Wed Jun 15, 2011
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
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Hi Gordo,

Thank you for your question. Banks don't usually do lease purchase on foreclosures. Your best bet to work with a Realtor, and find a home that fits your needs and then work on getting a great price. Be very careful if some trys to talk you into a lease to own deal. Lease/purchase sales contracts should always be written up by your lawyer in order to protect you.

Best of luck on your home buying adventure!

Steve
0 votes Thank Flag Link Wed Jun 15, 2011
Banks are no t in the business to own property, they will not Rent to own,
0 votes Thank Flag Link Wed Jun 15, 2011
I seriously doubt it. Banks aren't in the real-estate business. Yet, some investors might be willing to work with you.
0 votes Thank Flag Link Wed Jun 15, 2011
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