Home Buying in Knoxville>Question Details

Larry Gulley…, Home Buyer in Knoxville, IA

Can a house that is for in foreclosure be bought on a rent to own bases?

Asked by Larry Gulley Sr., Knoxville, IA Sun Sep 16, 2012

Help the community by answering this question:

Answers

4
For the last 3 or 4 years, people have tried every TWIST, every GIMMICK, every CON; to try to get around the SYSTEM.

If this worked, don't you think that a lot of people would be doing it?

The "CATCH 22" in the equation is the MONEY that is missing; the difference of the Market Value of the property, and the amount that is OWED: Someone has to come up with that money to keep the house out of Foreclosure, or, to purchase the house before it goes to foreclosure.

Think about it.
0 votes Thank Flag Link Wed Sep 19, 2012
Do you mean in foreclosure as it is somewhere in the court system? If so, then yes, you would need to rent it from the legal owners and that would be a ticking time bomb. You would likely be moving again within a few months, if the property were fit to move into to begin with. Many times, those owners weren't very kind to the house shortly before they moved out.
Or if you mean in foreclosure as it has gone through the final foreclosure step, usually the Sheriff's Sale, where the lender has bid what the owners owed against it and now is lender owned or REO? If so, then that lender has investors who want their money back, as much of it as they can get and as fast as they can get it. Renting is not an option to an investor. The lender has spent a lot of money on attorney's and other costs with a foreclosure; unfortunately, renters have no money in a property and just living in a house makes wear on carpets, paint, everything.
The only time lenders agree to rent is if there is a lease in effect at the time of foreclosure (Sheriff Sale) - and they only honor it until it expires.
0 votes Thank Flag Link Wed Sep 19, 2012
Hi Larry,

No. Lenders are not in the business of being landlords and if the current owner cannot make the payments (hence, foreclosure) you would be paying the current owner and the bank would still foreclose if the current owner does not pay the bank.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
0 votes Thank Flag Link Sun Sep 16, 2012
No, the foreclosure process can be a long and complicated one. Nobody is going to agree to this kind of an arrangment. Ever.
0 votes Thank Flag Link Sun Sep 16, 2012
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer