Rentals in Seattle>Question Details

Dayzeb, Other/Just Looking in Seattle, WA

Where can I find bank owned homes for rent?

Asked by Dayzeb, Seattle, WA Sun Dec 27, 2009

Are there bank owned properties that are available to rent? I can only find listings for REO homes that are for sale, but I've heard that some of these homes can be rented.

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Hi, Dayzeb,

Don't believe anyone who says they can find a bank-owned rental. " There's no such animal", but there are lots of scams out there.

If you're short of cash for a down payment, then do find an experienced Realtor to lead you in the right direction.

Jean Bradford
Associate Broker, ABR,GRI,CRS,CRB
1 vote Thank Flag Link Sun Dec 27, 2009
Dan,

Have you heard this to be true? I have never heard of it out here in WA. I suppose if we can't search by this criteria of bank owned for rentals, we could open up each rental individually and check the tax records. Regardless, who would want the bank to be their landlord? I think that is a pretty important question to ask if one was truly serious about renting an REO......

Sorry Dayzeb, I just have to play the devil's advocate, knowing they sell the homes as is, I can only imagine how difficult if impossible it would be to have them fix your dishwasher should it break.
1 vote Thank Flag Link Sun Dec 27, 2009
Dayzeb,
I did a quick look to see if that search was available from NWMLS, it isn’t. I can specify ownership type for purchases, but not rentals. I’m not aware of banks renting homes either, as others have mentioned. If they did have rentals, I don’t believe they would be a bargain. My recommendation for buyers and renters looking for a primary residence is not to focus on who owns the property, but focus on the right home, in the right neighborhood, that appeals to you. Work with a quality agent who can get the best deal for you. Best of luck.
Web Reference: http://SammamishRealtor.net
1 vote Thank Flag Link Sun Dec 27, 2009
No such thing. Banks are not interested in being landlords. The only time a bank would be in this position is if they foreclose on a home that contains tenants. In that case, if local laws require it, they honor the lease and once it's up, the tenant must move out.
0 votes Thank Flag Link Sat Feb 1, 2014
Me and my family have been evicted I have babies I would like to find a house for rent to own if possible on Cape Cod Do you think maybe somebody could give me some help please
0 votes Thank Flag Link Sat Feb 1, 2014
I can't find any on cape cod
0 votes Thank Flag Link Sat Feb 1, 2014
I am a listing agent for several banks. None of them will rent their inventory
0 votes Thank Flag Link Thu May 19, 2011
Although I agree that bank owned homes are not for rent. I know investors that flip homes; many times they will rent it to cover their costs if it doesn't sell in time. You also can buy bank owned homes for less than rent right now in many cases. I am helping a couple find one right now in Maple Valley.
0 votes Thank Flag Link Thu May 19, 2011
Banks want to sell the properties they own, as they will not want to manage them longer than they need to. As far as I know there are no REOs for rent.
If you're looking for a rental, try Craigslist.
It is a great time to buy, though! There may be zero down programs in your area for 1st time homebuyers. Speak to a lender that is approved at http://www.wshfc.org
0 votes Thank Flag Link Mon Dec 28, 2009
I agree with the majority of the posts in that banks arent interested in renting their reo property ....doesnt hurt to try contacting the various banks and asking to speak to someone that is in their reo dept ( try the smaller local banks versus the larger banks ) as they may be more flexible ...Dave Skow
0 votes Thank Flag Link Sun Dec 27, 2009
Hi Again Dayzeb,
The following excerpt is taken from the article linked below. Some times they will also allow a qualified (non-owner) party to rent. This helps prevent vandalism, frozen pipes, and generates some cash flow.

"For homeowners facing possible foreclosure, it is sometimes possible to stay in the home, and reduce monthly costs, by deeding the house to the bank, and renting it back from them. This rent-back option, known as the Deed-for-Lease (D4L) Program, has been growing in popularity. Here's how to find out if it's right for you."
0 votes Thank Flag Link Sun Dec 27, 2009
Thanks Jean! I hadn't thought of it as a possible scam, but so common in our industry, especially with all these homes foreclosing.
0 votes Thank Flag Link Sun Dec 27, 2009
You've heard wrong. Banks don't rent out REOs.

Banks are in the business of lending money. They don't even want to own REOs. They most certainly do not want to become long-term landlords.

And, as Van asks, why would you be interested? If you're interested in renting a place, that's fine. Rent. And if you're interested in buying, fine. Buy. I'm guessing you're assuming that if bank REOs are such good deals (some are; some aren't), then you could find a super-cheap rental that way. Nope. Won't work.

There are plenty of investors who are buying REOs, then turning them into rentals. Depending on the type of property and the geographic location, they can cash-flow very nicely. But, from your perspective, you'd simply be renting from an investor who owned the property. The bank would no longer be in the picture.
0 votes Thank Flag Link Sun Dec 27, 2009
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
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Dayzeb,

I am curious. Why are you interested in leasing a Bank or REO property?

Van
0 votes Thank Flag Link Sun Dec 27, 2009
I list bank owned homes and not only will they not rent them out, they also don't allow buyers to move in prior to closing.
0 votes Thank Flag Link Sun Dec 27, 2009
I have not heard of bank renting REO properties. Mainly because they are not property mangers and also now they would need to have insurance that covers rental poperties as well as follow any state laws as far as rental contracts go. You should be able to a home to rent at a fair price that is not a REO. Many REO's are in very bad condition and I don't understand why you would want to live in one. That being said, have a real estate agent in your area search the local MLS for rental that maybe available.
0 votes Thank Flag Link Sun Dec 27, 2009
Dayzb:

The banks are now in the business of leasing. They need there cash for cash reserves and lending. You will not locate a REO for rent.
0 votes Thank Flag Link Sun Dec 27, 2009
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