Rentals in Cypress>Question Details

Rizwiz, Renter in Cypress, CA

good idea to rent pre-forclosure homes?

Asked by Rizwiz, Cypress, CA Wed Jan 26, 2011

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Kawain Payne, Realtor, Notary’s answer
Hello Rizwiz,

This is onloy a good idea if you enjoy packing up all your things and moving often.

You will not know how far into the pre forclossure process the landlord is. He/she could be in a position to reocovery and get out of the red or they could be too far behind to catch up. In this case the home good be sold at a trustee sale before you know it.

There are so many homes for rent why risk renting a pre forclosoure?

Best of luck to you.

Kawain Payne, Realtor
1 vote Thank Flag Link Thu Nov 8, 2012
I don't see why anyone would want to rent a pre foreclosure. It will be more of a hassle than anything. Especially for someone that may have children. How can they be moved from one school to the next. The cost of moving every so often, not to mention the labor involved... I cant see how it would be worth it.

Alex Montelongo/Broker
Coldwell Banker Star Realty
562-810-787 Cell
BRE LIc #01456982
1 vote Thank Flag Link Wed Apr 16, 2014
No Not EVER!!!!!


Kawain Payne, Realtor
0 votes Thank Flag Link Thu Jun 26, 2014
Did you rent pre-foreclosure? How did it work for you?
0 votes Thank Flag Link Tue Nov 6, 2012
Only if you enjoy moving eery 3-6 months. I'm puzzled as to why you would even ask, if the home has a 90% chance of ending up in foreclosure and you're going to be forced to move, what would the appeal be. THe owner is already not paying their mortgage (hence pre-foreclosure) do you think their maintaining the property or will be responisve to your needs?
0 votes Thank Flag Link Fri Oct 7, 2011
Inexpensive housing is always a big pull, but I think you really need to weigh the Pro's and Con's about getting involved with one of these arrangements. There could be other viable housing alternatives that may be better for you in the long run. Overall, I would be hard pressed to recommend this type of arrangement.
Web Reference: http://www.perrycrosbie.com
0 votes Thank Flag Link Thu Oct 6, 2011
Rizwiz,
Renting a pre-foreclosure home can be risky. The landlord may not be making the payments on this home, and you may be asked to move sooner than you planned. A plus is sometimes banks will pay whoever is living in the property to move. It's has been called "Cash For Keys". This could help you reloacte (if it's offered) to another home should you have to move. A better choice may be to find a home that's not pre-foreclosure and be able to stay for your lease period.

All the best,

Gary Geer

http://www.GaryGeer.com
0 votes Thank Flag Link Mon Jun 20, 2011
Riz -

It's not a good idea as others have already stated. There are pros and cons;

Cons;
1) It actually could be a "CON" - it may not be the owner renting the property - it could be a con-artist and you would be tresspassing.
2) If it is foreclosed, you will need to move quickly. Since the rental agreement was signed with full-knowledge of the Default, you will likely not be entitled to any "Relocation allowance" from the bank.
3) If you provide a security deposit, know you will not get it back. The "landlord" is in financial trouble and likely will spend your money the day you give it to him/her to pay their other bills.
4) If anything breaks, like a water heater, A/C, Furnace, Plumbing, etc. it may never get fixed as the owner has no money.

Pros:
1) You might get a very good monthly rate - assuming you are renting from the actual owner.
2) No matter whether the owner is paying their mortgage or not, you are getting what you pay for - "housing".
3) Depending on where they are in the process, you may be able to stay there for a few months and save some money.

If it were me, I would NOT rent a property in Default - there are too many unknowns.

Best of luck,

Thom Colby
Broker / Owner & Certified HAFA Specialist
Thom Colby Properties
Newport Beach, CA
Moving Lives Forward (TM)
We NEVER DOUBLE-END Transactions in our Brokerage. IN MY OPINION, there is NO benefit to the Seller or Buyer and only benefits the Agent. Also, NEVER use your RE Agent / Broker as your Lender or vice versa. Also, be careful when using Real Estate Broker-owned Escrow and Title Companies - they can be loads of trouble.
888-391-5245 Direct Cell
THOM@THOMCOLBY.COM
DRE# 01398570
0 votes Thank Flag Link Thu Jan 27, 2011
NO WAY !!! Unless you are willing to show the home when listed and move out as soon as it sells.
0 votes Thank Flag Link Thu Jan 27, 2011
No.

Out of curiosity, I've seen a number of questions like yours. Is someone promoting this idea/concept? If so, who? And what's the supposed strategy or benefit?
0 votes Thank Flag Link Thu Jan 27, 2011
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
Probably not a good idea especially if you are looking to rent long term. If you are just looking for something temporary then it may not be a bad idea if the monthly rent is reasonable. Keep in mind if it does go to foreclosure the property no longer belongs to the current owner and you will have to move out once it is foreclosed upon.
0 votes Thank Flag Link Thu Jan 27, 2011
No - it's a bad idea. Don't do it.
Web Reference: http://www.aaronzapata.com
0 votes Thank Flag Link Thu Jan 27, 2011
I agree.....short term with little or no notice is an option.
Web Reference: http://www.321property.com
0 votes Thank Flag Link Thu Jan 27, 2011
This depends on how far along in the process the bank is with thr foreclosure and, you are comfortable with a short term rental, and if you can pick up and move rather quickly with notice.

If you can get a decent monthly rental price...and you can deal with the above outlined issues.......why not?
0 votes Thank Flag Link Thu Jan 27, 2011
Definitely a bad idea since it may be difficult to find out if you are paying rent to the owner or a scam artist. You will also get evicted once the foreclosure is final.
0 votes Thank Flag Link Wed Jan 26, 2011
Keep in mind that you're paying rent to someone who isn't paying their mortgage. Just taking your money and sticking it in their pockets. You would also want to make sure that the person who you are paying rent to is actually the owner not some scam artist who found a vacant house to rent out.

Good idea? Certainly not a good long term plan.
0 votes Thank Flag Link Wed Jan 26, 2011
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