Beata Schulm…, Home Buyer in Wellington, FL

Can i rent a house while it is in a short sale process?

Asked by Beata Schulman, Wellington, FL Tue Jan 10, 2012

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Answers

9
You are asking a question that has legal and eithical consequences:
Ann and Terry have done an excellent job of answering you, as best they could.
You probably want to talk to your Attorney before you go any further.

Good luck and may God bless
1 vote Thank Flag Link Tue Jan 10, 2012
Are you the landlord or the tenant? A responsible landlord would ensure the house payments continue to be made from the rent collected, and would ensure that the tenant was aware that foreclosure proceedings could begin. If you're the tenant, you can rent the property, but want to be assured that in case of a foreclosure, you will be able to receive your security deposit back - in other words, it needs to be in an account the landlord can't access.
1 vote Thank Flag Link Tue Jan 10, 2012
If you are asking if you can rent a home that is in short sale the answer is yes if the owner agrees to it. Some people do rent short sales on a month to month basis - just be prepared to allow the home to be shown and to move with short notice.

If you are the owner and it is vacant and you want someone to rent it from you be very, very careful. Sometimes the tenant makes it next to impossible to be shown which results in the short sale not working out which of course results in foreclosure.
1 vote Thank Flag Link Tue Jan 10, 2012
I hear about home owners doing this frequently renting out the house month to month collecting additional income. By the time the house goes in to foreclosure I would assume the home owner would have a nice sum of money tucked away from the months the mortgage was not paid and from the rents collected.

Morally, is this unethical? In today's market there appears to be a huge divide among folks and agents who agree and disagree. Just 24 months ago majority considered it unethical, illegal and potentially defrauding a bank. Morally, I would not advise a person/renter to support a home owner who may be taking advantage of a system for personal gain by which tax payers may eventually be responsible to foot the bill in the end. Good luck to you!
0 votes Thank Flag Link Wed Jan 11, 2012
Hi Beata. I'm assuming you are interested in renting a home that is in the short sale process and not the owner of the home that's about to become a short sale? If that's correct then the answer is yes, you can rent this type of home, but understand that you are running the risk of being "kicked out" by the lender without much notice if it's sold. Personally, it wouldn't be my first choice.

If you are the owner of the home that's about to become a short sale, my guess is that you are not allowed to rent it out. However, since this is a legal question then I recommend seeking professional advice from a real estate attorney.

Whatever you decide to do I wish you the best of luck.

Sincerely,
Nicole Marks Mason, Realtor
http://www.buysellboca.com
Web Reference: http://www.BuySellBoca.com
0 votes Thank Flag Link Wed Jan 11, 2012
HI Beata, if you are the seller, I would advisey you to discuss with your attorney. Receiving income could effect your hardship case so I would be very careful.

Good luck to you,
Jeanne Feenick
Unwavering Commitment to Service, Unsurpassed Results
0 votes Thank Flag Link Wed Jan 11, 2012
Are you the landlord or the tenant in this case? The answer is yes in both cases. If you are the tenant you must be prepared to show the home untill a contract is on it. You also need to be prepared to move out on short notice. In return you should get a great discount on your rent.
If you are the landlord be open and honest with the possible tenants. Disclose the fact that the home is in a short sale process. Expect to get paid less than market rent and be prepared for showing difficulties.
Either way, I wish you
Good luck

Anton Seiss
561.339.7003
http://www.seissrealestate.com
Web Reference: http://seissrealestate.com
0 votes Thank Flag Link Wed Jan 11, 2012
Beata- The answer to your question is two fold. Yes it is possiible,
but only to be considered in light of some unique advantage that remains
after carefull weighing out of the liabilities possibly invoved. I can see
both legal and practical issues, many of which would not be apparent
to the"Layman "
One always has to keep in view the logic of walking into an ustable
and unpredictable environment as a back-drop to a lease agreement.
There has to be "compelling compensating factors" involved! Making
such an assessment without professional assistance is unwise! Get both
legal and practical imput before moving on such cicumstances!
Best of Luck!


BOB BRUBAKER HIGHLIGHT REALTY PALM BEACH COUNTY FL. 561-876-6649
Web Reference: http://pbc-realcam.com
0 votes Thank Flag Link Tue Jan 10, 2012
Hi Beata,
I would not recommend it. If you love the home and can move quickly and easily if it sells then maybe you would consider it. As previously stated, you would be showing it all the time (and strange things happen when strangers come into your home). Let me know if I can help there are many homes for rent in the Wellington area.
Best, Diana Nardy, Forbes Realty of South Florida, West Palm Beach
diana@forbesrealtyonline.com
0 votes Thank Flag Link Tue Jan 10, 2012
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