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
Coldwell Banker Star Realty
BRE LIc #01456982
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,
It's not a good idea as others have already stated. There are pros and 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.
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,
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.
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If you can get a decent monthly rental price...and you can deal with the above outlined issues.......why not?
Good idea? Certainly not a good long term plan.