Can you rent a foreclosure?

Asked by Caitlin Klug, Mountain House, CA Fri Jul 8, 2011

Can you rent a foreclosure from a bank?

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8
Tina Lam, Agent, San Jose, CA
Fri Jul 8, 2011
The banks are struggling with a lot of bank owned properties with the tenants or home owners still living there. The properties are then not marketable. And the banks need to spend money to evict the tenants. If that's not successful, they sell these houses at an auction and let the new buyers to worry about occupancy.

In short, no. Banks are not going to bring more headache to themselves.
Web Reference:  http://www.archershomes.com/
1 vote
Sue Cortes, Agent, Livermore, CA
Thu Aug 11, 2011
Hello Caitlin,

Recently, President Obama's administration announced their idea to rent foreclosed home. You can read more about this on the link below.

http://www.nytimes.com/2011/08/11/business/us-seeks-to-rent-…

Until the idea becomes a law, you have to be careful when talking to a ould be landlord because there are SCAMMERS! Do your due diligence before giving someone your hard earned money.

Good luck and let me know if you need additional info.

Sue Cortes
Prudential CA Realty
(650)799-9971
0 votes
Suz A, Agent, Longmont, CO
Sat Jul 9, 2011
Hell Caitlin!
I agree. Renting a foreclosure home is fraught with risk for a third-party renter. From the headlines, you can appreciate that there are foreclosure problems. In California, there have been plenty of foreclosures and there will be more.

The foreclosure crisis that produced federal and state investigations has left many questions in its wake. Many homeowners are fighting foreclosure by attacking the lender's right to foreclose. In short, there is a problem with establishing that the lenders in all cases have title. I don't know if it has happened, but the risk is there. You could find yourself locked out if the homeowner returns. At least one lawyer has been recommending homeowners break in to reclaim their homes.

If you want to get in the middle of the crossfire, this seems a course that could accomplish that.

Until the picture becomes clear, the banks have a problem. The other agents have noted banks don't want to become landlords. However, with 2 million potential foreclosures to come, banks might entertain a change of policy. An occupant with income might be a temporary solution. After all, homes don't are for themselves. Someone living in a home that has been seized won't let it become infested with snakes like the Seattle home that was in the news recently. They use the plumbing, which in colder states means pipe freezing doesn't become an issue.

You are better off if you can swing some financing to buy a home. The likelihood mortgage rates are going to get better is remote. There is risk that home prices could slide. But there is a risk that rents will go higher.

Best,
SuZ
PML of Longmont, CO

reference: http://www.independentamerican.org/2010/07/25/if-wall-street…
0 votes
Ron Thomas, Agent, Fresno, CA
Sat Jul 9, 2011
Caitlin;
This is a two part question, you must realize:

Renting a House while it is going thru Foreclosure:
Not a good idea; you don't know whom to pay the rent to, and you will have to move, possible with no notice.

Renting a House that has gone thru Foreclosure:
Not possible: The Bank owns the property now, they want to Sell it, not rent it. They won't want to evict someone after they sell it.

Wait; a thought just occurred to me:
If someone approached you about doing this, THEY ARE UNDOUBTED A SCAMMER! Beware!!

Good luck and may God bless
0 votes
Richard Murp…, , Sacramento County, CA
Sat Jul 9, 2011
Now is a Very good time to become a Homeowner, now that the prices have dropped so far that I am afraid to say the percentage.
Try searching http://www.HomePath.com to see if you can get a Fannie Mae REO, they have Funding available plus they pay 3.5% toward your Closing costs on some of their houses.

Plus other Funding options available at:
Web Reference:  http://www.Bank-Funding.com
0 votes
Rocky G.H. H…, Agent, Ripon, CA
Fri Jul 8, 2011
Hi Caitlin,

I recently had a situation where a home was a foreclosure and the Lender aloud the previous owners to remain in the home. They did however agree to move prior to the close of escrow. This is however, from my experience very rare. California law very much favors tenants over landlords and as a result, is a large risk for Lenders. It is however a way for Lenders to mitigate the holding cost.

I hope this helps,

Rocky H. Hawrysz
Prudential California Realty
P:(209) 444-6610
F:(209) 433-2000
rocky@prucalifornia.com
http://www.TeamHawrysz.com
Lic: 01468373
0 votes
Bernadette T…, Agent, Mountain House, CA
Fri Jul 8, 2011
Not advisable to rent a home going through foreclosure. It doesn't make sense to move into the property only to move out again later. The uncertainty of it all can become stressful for you and your family. Good luck with your search.

--Bernadette Weir
CA DRE #01400635
Mountain House, CA
0 votes
Don Tepper, Agent, Burke, VA
Fri Jul 8, 2011
No.

Banks want to sell foreclosures. They don't want to be landlords.
0 votes
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