Foreclosure in California>Question Details

Melissa, Home Buyer in 91730

Question regarding foreclosure situations

Asked by Melissa, 91730 Tue Aug 26, 2008

Is it possible with a short sale situation to purchase a distressed property and rent it back to the former owner at a lower monthy rate with the new scenario or is this pretty much unheard of?

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Answers

3
You can do it. You're the homeowner
0 votes Thank Flag Link Sat Sep 13, 2008
Hi Melissa,

Once you own the home you can do whatever you like with it. But bear in mind that the lender who is being shorted may or may not agree to the sale of the home once the plan to do the rent back to the current owner is disclosed. And, as was previously stated you would need to disclose that to the lender's (both the one loaning the money to you and the one who loaned money to the seller).

As long as you are doing everything above board and everyone involved agrees then you would be fine with purchaseing the home as an investment property (which in and of itself is fine) but be prepared for the fact that the lender that you get your mortgage may charge you a higher interest rate based upon the fact that the home is intended to be non-owner occupied and therefore presents more of a risk to them.

Hope that helps.

Take care and have a great day!

Tisza Major-Posner, Realtor, IVPG Realty (909) 837-8922 Tisza@HomesByTisza.com
Web Reference: http://Route66Living.com
0 votes Thank Flag Link Tue Aug 26, 2008
It would be possible unless you applied for an owner occupied loan. Investor loans are higher in rate and demand a higher percentage down payment. Truth in lending goes both was so as long as you disclose what you are doing to the lender and you qualify financially, itis possible.
0 votes Thank Flag Link Tue Aug 26, 2008
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