How to Rent a House Which Is Being Foreclosed
Oftentimes, a house that is in foreclosure may be offered up for rent by the owner. In this way, the owner can continue to meet the mortgage payments, thus halting or at least slowing down the foreclosure proceedings, while still being able to keep the house.If you are looking for a house to rent, this might be a good option. There are some things you need to do and know to protect yourself, however, from being evicted or otherwise affected by the foreclosure.
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Instructions
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Obtain as much information about the status of the foreclosure proceedings as possible.
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Meet with the owner and decide on a rent amount that will cover the owner’s house payment, but yet be something you will be able to pay. Also decide on a move-in date.
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Have the lease drawn up, making sure that everything concerning rent and what any consequences of further foreclosure proceedings would have on your status as the renter.
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Have the lease examined by an attorney before signing it.
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Once you are satisfied with the contents of the lease, sign it, and move in on the date previously agreed on.
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Tips & Warnings
Hopefully, the homeowner will be up-front with you and tell you that the house is in foreclosure and where exactly things stand right now. However, you should still do some checking of your own.
Do this by getting the exact “physical” (street) address of the residence, going to the tax assessor’s office in the county where the residence is located, and checking the public (and therefore available to you) records on the house. Once you have that information, you can then continue with the renting process, if you choose.
Make sure you are dealing with the honest-to-goodness homeowner. In this way, you will avoid being a victim of one of the many foreclosure scams that are out there today.
Don’t hesitate to have your lease examined by an attorney. If the homeowner is being honest about everything, he or she should not have any problem with you doing that.
Keep detailed records of everything you do in regards to renting the house. Make copies of everything you sign, and keep meticulous financial records regarding how you are paying the rent. This may be the only thing that you have going for you if problems should arise.
Make sure you have renter’s insurance. This will cover your possessions should you be evicted for any reason, and your furniture and belongings simply “set out."
