Foreclosure in Anchorage>Question Details

Lucinda Mang…, Renter in Anchorage, AK

Is is possible to rent a forclosed house from a bank and pay their interest?

Asked by Lucinda Mangrobang, Anchorage, AK Thu Apr 28, 2011

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6
Lucinda. At this point, institutions won't allow occupancy prior to purchase. Even in the late 80s when there were foreclosures were plentiful, institutions did not allow rentals. One cannot predict if governmental agencies will change regulations in the future.
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0 votes Thank Flag Link Thu Apr 28, 2011
It is nearly impossible to get a corporate Seller to agree to renting a home or any sort of lease/purchase arraignment. This holds true for bank owned foreclosures and Relocation Company owned homes.
0 votes Thank Flag Link Thu Apr 28, 2011
When a bank takes a home back, itis their intention to limit their liabilities as they have already begun losing money on the home.
Renting a bank owned property will probably never happen. As stated ealier, most of the time the utilities are turned off, and the home is "secured". Banks hire companies to come around and maintain the homes just enough to show them to prospective buyers. The banks are adamant that once an offer is in place, that they will not allow early occupancy or even storage of the buyer's personal belongings until after closing.
0 votes Thank Flag Link Thu Apr 28, 2011
Both Bob and Wayne have provided you with excellent answers. Another reason banks want "empty" homes is that empty homes sell faster. This is especially true of foreclosures (that are right-priced) because, quite frequently, a cash-buyer will come along, plunk down the money and close in 2 weeks.

So, even though it looks like the bank is losing money, in the long-run, they're going for the short, fast transaction.
0 votes Thank Flag Link Thu Apr 28, 2011
Everything is possible although this is not a situation that banks like to do.
In Alaska it is hard for the banks to keep the property service due to elements of weather.
Also they perverse to sell as soon as they are able after gaining title to the property because they make their money from interest.
0 votes Thank Flag Link Thu Apr 28, 2011
Typically the bank will not allow a foreclosed home to be lived in. They do not want to be in the landlord business and would rather let the home sit empty instead of working with renters.

Most bank owned properties are winterized and the utility's shut off so the bank doesn't have to worry about it.
0 votes Thank Flag Link Thu Apr 28, 2011
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