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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