General Area in Keene>Question Details

Jt, Other/Just Looking in Keene, NH

How common is it for a bank to rent a foreclosed home to its previous owner and what happens with the town's taxes? who pays them?

Asked by Jt, Keene, NH Mon Oct 3, 2011

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11
Never heard of the scenario before.....banks loan and hold money for others. They are not in the business of owning property and being a landlord.

Bill
0 votes Thank Flag Link Sat Apr 5, 2014
In my experience banks do not rent homes. Probably a liability issue. More importantly, a renter could cause a problem with a closing if the renter decided to stay and force the bank to evict.
0 votes Thank Flag Link Sat Apr 5, 2014
This would not happen. Banks will not rent a home to anyone. Their goal is to recoup as much money as they can. Therefore, the utilities are cut to a minimum and the home is winterized and sold!
0 votes Thank Flag Link Tue Apr 1, 2014
Banks will not rent homes that they have foreclosed on but they may let a present owner stay and pay utilities
0 votes Thank Flag Link Wed Mar 26, 2014
Banks do not rent that I have ever heard of. But if there is an existing lease agreement on the home prior to foreclosure the banks often honor it.
0 votes Thank Flag Link Thu Oct 6, 2011
Normally banks do not rent.Bank pays all tax and lean.Thank you.
0 votes Thank Flag Link Thu Oct 6, 2011
It is not common practice and is usually against what all banks ultimate goal is , which is to get the house sold. There could be a problem with the foreclsoure deed or the owner is fighting his eviction... something sounds just a little off
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Thu Oct 6, 2011
It actual isn't my home. Its a home I was interested in until the listing agent told me that they were going to rent it to its former owner and I was thinking it was maybe because they didnt want to weatherize the home. But I have expressed interest in this house to both the bank owning it and the agent who would eventually list it. It went back to the bank in May and the former owner is still in the home. I didn't this it was very common practice to rent to a former owner... thanks for your responses!
Jt
0 votes Thank Flag Link Tue Oct 4, 2011
I have NEVER seen a bank rent a home back to the former owner. if the bank buys it back at foreclosure auction, they will assign the home to an asset managment company who then assigns the listing to an approved agent in your area. The agent will make contact with you to offer you cash for keys if you move within 30 days or less. If you do not move out they will begin eviction proceedings. Sorry to tell you a rental of your old home will not be an option.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Tue Oct 4, 2011
I have dealt with foreclosed homes for the last six years and have never seen a bank rent to the former owner. A tenant perhaps but never the previous owner. All taxes and other liens are paid by the bank.
0 votes Thank Flag Link Mon Oct 3, 2011
Hello,

In response to your question, normally banks do not rent a home that they foreclosed to the previous owner. Banks will eventually put the home on the resale market for sale and close escrow.

Properties that are rented, the landlord typically pays the property taxes and homeowner insurance. The tenants will pay for rental insurance to cover their personal property in the home

Carol Perdew
Prudential California Realty
(209) 239-7979
Carol@PerdewHomes.com
DRE 985176
0 votes Thank Flag Link Mon Oct 3, 2011
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