My home is in preforeclosure. I want to keep up my insurance and taxes up, so in case I get a chance to go to court, I can say I'm trying the

Asked by Summer, Key Largo, FL Mon May 10, 2010

best I can.
Question: Can I rent my home out as a vacation rental-weekly/monthly even though the mortgage is to high for me to pay?

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Bill Eckler, Agent, Venice, FL
Sun Apr 1, 2012
As the owner of record, you can do anything with the property that you are allowed legally to do...up to the point of no longer enjoying ownership.

The absolutely best thing you can do for yourself is to seek legal advice from an attorney. It may cost you money but what you get in return may far exceed your expectaions.

Good luck,

1 vote
Adrian Diaz…, Agent, Miami, FL
Mon May 10, 2010
Hi Summer,
Alma hits some good points about the short sale and zoning.
One thing to keep in mind regarding short sales or pre-foreclosure is that until the gavel falls you own it. That means within the limits of zoning or your community association you should (within reason) be able to do as you see fit.

There is a provision with the IRS that provides mortgage relief or forgiveness of certain types of real estate debt under specific circumstances that you may qualify for. This may ease your tax burden dilemma. The link is here for general short sale faq's.

Don't despair and we can help we would be happy to.

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1 vote
Irina Karan, Agent, Aventura, FL
Sat Mar 31, 2012
There are many programs available to home owners right now.
HARP, HAMP, HAFA and regular short sales, as well as Deed in Lieu of foreclosure, with foreclosure being the worst.

You can start by finding out all of the options available to you.
Many attorneys do free consults.
There are realtors who have been trained to work with homeowners like yourself, who find themselves in in pre-foreclosure situation.
You can refinance, do loan modification, do a HAFA short sale, regular short sale of Deed in Lieu (if worst comes to worst)...You can call your lender, explain that you are in financial hardship situation,
and find out about some of the options available to you. In some short sales, lenders pay your taxes.
In other cases, lenders will pay the seller to do the short sale (if qualified). Home insurance in FL is something that you don't want to be without though.

Whatever you decide to do, you'll probably be better off if you do it right away - starting from contacting an experienced CDPE agent (Certified Distressed Property Expert) in your area (you can find one on CDPE website). Renting while not paying the bank is NOT what you want to do (banks can persecute for it).

Hope this helps,

Irina Karan, CDPE
Beachfront Realty, Inc.
0 votes
Carole Higgi…, Agent, Suttons Bay, MI
Fri May 14, 2010
Renting under a short sale situation is a bad idea, unless you can show you are using the money to pay part or all of the mortgage. Banks do not look kindly to owner who can collect rent but not pay them any mortgage payment. You will have to pay all rent monies collected back to the bank if they find out you are renting your property.
0 votes
Nereida Figu…, Agent, Miami, FL
Mon May 10, 2010
summer, please call me we can talk about all option you have to keep it.
0 votes
Alma Kee, Agent, Tampa, FL
Mon May 10, 2010
Hi Summer,

As long as your zoning allows short term rentals and you collect the extra taxes, you should be okay to rent it out.

If you are not paying your monhtly mortgage payments the lender may actually be able to collect the rents per the terms of your mortgage. I haven't seen it happen yet, though.

Have you considered selling it with a pre-foreclosure short sale? With a short sale you may be able to buy another house in only 2 years. If the lender forecloses you may not be able to buy another home for 5 years.

Also go to and find out if you can get a loan modification to lower your monthly payments. You will need to keep it as your primary residence so check that out before making it a "rental" property. Also if you decide to sell it via a short sale you should NOT make it rental property as you can end up with a large tax bill owed to the IRS for any "forgiveness of debt".
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