Disclaimer: I am not a lawyer. I am
only publishing my interpretation of my situation. You should seek your
own legal representation for your own particular
situation. Do not rely on my
opinions or statements for your own purposes as state
and local law varies as do individual circumstances.
Even though my two condos
will be going back to the banks in foreclosure, I have decided
to rent them out anyway. Some people might consider this a scam
against the renters, but I have been upfront with the renters in
disclosing the foreclosure status. They are aware that a
foreclosure sale date may be set any day now and that they will
then have to vacate. The renters that I have found are okay with
this. Surprisingly, I had a huge response when I first put my
ads online. In fact, the two condos rented within two days.
I am renting out these
two condos because, even though I am not paying the mortgage
payments and have not paid the mortgage payments since November
of 2007, I am paying the monthly condo fees and utilities. The
rent coming in from these two condos will now pay the condo
fees. Of course, since these properties are going into
foreclosure eventually, I have asked for pretty low rent with no
deposit and on a month-to-month basis. The renters are very fond
of these points.
Renters who are in the
market looking for a place to rent should be aware of the
foreclosure risk. Owners might not always tell the renters that
the property may go back in foreclosure. Unfortunately, I do not
think there is a very good method of verifying this short of the
owner letting the potential renter contact the mortgage company
directly (this is probably not going to happen). Plus,
foreclosures rarely take renting occupants into consideration.
The renters usually just have to vacate with short notice.
For all those property
owners out there with rental properties that are going back in
foreclosure, do not let your property sit there with no renters.
Put renters in there, but make sure you tell the renters about
the upcoming foreclosure and give them as much notice as
possible about the foreclosure sale date. I let my condos sit
vacant for a year (over 12 months) thinking the foreclosure was
going to close within 90 days. Over a year later, I still do not
have a foreclosure date for either of these properties. I could
have had renters in these properties the entire time. I hate
that I did not.
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