How to Rent a Bank-Owned Property

Banks own property as a result of foreclosure.

A bank-owned property is the result of an individual or business defaulting on the mortgage payments and the bank takes possession of the property. Renting bank-owned property is generally done with commercial property. However, in a slow market the bank may consider renting residential property as well. The downfall with renting bank-owned property is when the property sells, you are forced to relocate. Also, banks usually do not provide any updates or repairs to the property, forcing you to take care of them.

Things You'll Need

• Copy of deed

Instructions

1. Write down the physical address of the bank-owned property you want to rent. Go to the county courthouse. Make sure it is located in the same county as the bank-owned property.

2. Provide the clerk in the department that handles land deeds with the address of the property. Request a copy of the current deed. This provides you with pertinent information regarding the bank-owned property, such as the name of the bank.

3. Contact the bank listed as the lien holder on the deed. Request to speak to a bank representative in the foreclosure department. Explain to the representative that you are interested in renting the property owned by the bank.

4. Write down the information she provides, which includes the attorney's name or the listing real estate agent's contact information. The bank hires professionals who deal with foreclosures to handle the sale or renting of the property.

5. Contact the professional handling the bank-owned property. Ask if the bank-owned property is for rent. Request a list of the terms required to rent the property. Generally, an attorney is the one who handles the rental negotiations. He provides you with the terms and a rental or lease agreement. The agreement is generally a short-term agreement, such as a six month lease; in case the property sells during that time.

6. Provide the required information for the rental agreement on the bank-owned property including your name and address. A deposit is also required to rent a bank-owned property.

7. Sign the rental agreement and pay the required deposit. Receive a copy of all agreements signed for the rental of the bank-owned property.

Tips & Warnings

• Expect a clause to be added to the agreement stating that you must vacate the property if it sells.

References

• Market Watch: Home Buyers, Get the Most for your Money
• Abbey Properties: More on How to Rent a Foreclosure
• HUD: Talk to a Housing Counselor

Resources

• Read this Article in Spanish