Foreclosure in Houston>Question Details

Shon Parks, Other/Just Looking in Houston, TX

I am in the process of leasing a home; but it is up for foreclosure and i was told that they are doing a

Asked by Shon Parks, Houston, TX Mon Feb 2, 2009

quick sale; but now the day is approaching for the foreclosure and the sale is not final, what shoud i do? I have already given a deposit. The broker is telling me that the bank will let me stay in it anyway, but i'm not sure, please help.

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This question came up the other day with a prospective client I was talking with. I say NO - you should never enter into a lease agreement with a home that faces foreclosure. Although you have tenant rights once you have a signed lease, why take the chance. If you need repair on the home, who do you think will be in charge? Certainly not the seller who hasn't paid his mortgage. Banks are not in the business of being landlords. It's best to move on and find a home with a reliable landlord/seller.
0 votes Thank Flag Link Sat Jan 2, 2010
Shon,
I bet your Broker will not put that in writting. If he will take it ,you may need it later when you make him find you a place to live.
Margaret
0 votes Thank Flag Link Tue Feb 3, 2009
Shon:

We specialize in foreclosure prevention and selling homes that are in the process of foreclosure. Unforetunately, we often have to deal with tenants that are affected because of the problems their landlord is facing.

No bank is willing to "rent" the property if the home foreclosues and the bank retains ownership of the home. The home will either be sold at an auction or as a bank owned property.

Stay away from this property. There are many other good deals in Houston.
0 votes Thank Flag Link Tue Feb 3, 2009
I think I'd stay away from that one if it were me in that situation.
Do you really want your deposit going to someone who hasn't paid the bills?
Have you signed a lease yet?
Ask to get everything in writing....if the bank will let you stay will they be responsible for your deposit and how long will they let you stay? Get that from the bank and not the agent.
You stand the risk of getting in and then the foreclosure happens and you're evicted in another month or two.
0 votes Thank Flag Link Tue Feb 3, 2009
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
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Get your depost back! You should not be attempting to rent a home that is going through foreclosure. The broker that has informed you that the bank will let you stay is not telling you the truth as they have absolutely no way of knowing this.
0 votes Thank Flag Link Tue Feb 3, 2009
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