Home Buying in 95131>Question Details

Sailam, Home Buyer in 95131

Considering to buy a short sale house, can I rent it to current tenants or owners of the house after the short sale is complete?

Asked by Sailam, 95131 Thu Jul 19, 2012

I stay in California and have 6 months on my lease. I would like to buy a home through short sale. This house has tenants who may have some agreement with the current owner. I expect the short sale to be processed in 2-3 months. Is it possible for me to delay taking possession of the house by another 2 months after the short sale is processed?

In case, I need to immediately take possession of the house after the short sale is processed, can I charge rent from the current tenants or owners for a short duration of time (2 months)?

I am a first time home buyer and I intend to take a Fannie Mae or FHA loan, does this have any impact on my lenders? I would appreciate any responses to this question.

Help the community by answering this question:

Answers

6
You raise some very important issues with your question. As I understand, you are currently represented by a REALTOR. These are issues that you should raise with your REALTOR who represents your interests.

I recommend that you talk about these issues with the REALTOR who is representing you on the purchase and the loan officer who is obtaining the financing for you.
1 vote Thank Flag Link Thu Jul 19, 2012
Hi Sailam,

You have asked many important questions and is very hard to answer them here as their can be many variables. In my opinion you need to pick a good Realtor to work with first. Once you have a good agent helping you they can answer all your questions and help you get pre qualified for your loan.

Good Luck,

Jim Guido,

Realty World/Blue Property Group
Cell: 408-472-2074
Email: jim@jimguidorealtor.com
Website: http://www.jimguidorealtor.com
DRE# 00700635
0 votes Thank Flag Link Thu Jul 19, 2012
Thanks Andrea, Charles, Bradley and Elena. I will talk with my realtor and loan agent. I did not know about the intent to occupy clause till now. Thanks again!
0 votes Thank Flag Link Thu Jul 19, 2012
As Andrea said - get a professional to work with, both real estate and a lender. Too many options to give you a straight answer.
0 votes Thank Flag Link Thu Jul 19, 2012
Hi Sailam, my understanding with short sales in California is that the the buyer
cannot have any contract for rental after close of escrow but as far as the existing
tenant is concerned I believe the buyer could have a lease agreement with the
existing tenants who could remain after the close of Escrow. Important thing is
to disclose this to the lender approving the short sale and get their OK or disapproval.

Search YouTube.com for AMICI REAL ESTATE for Low Commission to Home Sellers!
http://www.youtube.com/watch?v=BIIkTJKeRBE

AMICI REAL ESTATE
BRADLEY R. WILSON
488 Blossom Hill Rd. Suite B
San Jose, CA 95123
Bradley@AMICIrealestate.com
AMICIrealestate.com
DRE 01491944 NMLS 340990
Direct: (408) 228-7867
FAX: (408) 273-6975
0 votes Thank Flag Link Thu Jul 19, 2012
Hello Sailam, it is best for you to have agent representation to secure your interests in the transaction. You have a myriad of scenarios that need to be addressed. For starters, some lenders will accept an agreement from you of "intent to occupy" by a certain date. Otherwise, if you purchase property as non-owner occupied, your interest rate and down payment may be higher.
0 votes Thank Flag Link Thu Jul 19, 2012
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer