Do foreclosures ever go on the market to rent?
(0) | asked by: Larissa E | share | 9 months ago | Report
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No, they usually get sold by the bank
Hello Larissa, not really why do you ask? The rentals in Dana Point start from $1,695 for 2bd 1ba apt and the single family homes start from $2,795 for 2bd 2ba home. If you figure out what cities/zip codes you are considering, minimum number of bedrooms and the maximum payment/price you are looking to achieve you can be emailed listings to fit your search criteria. Your email address is needed to set you up for the automatic daily updates. You may qualify to buy with less than first, last and security of a rental with down payment and closing cost assistance programs. You should study RENT vs BUY options as you may qualify to buy and pay less than rent in many local cities. You may qualify to buy with minimum out of pocket expenses, less than first, last and security with down payment and closing cost assistance programs. Beware of the many rental scams out there these days on all sites. The scams are on all of the rental listing sites except one that us agents/broker use such as mls, multiple listing service. You should not give anyone any funds or personal information without confirming with a licensed agent/broker or management company to find out whom you should be dealing with and the status of any address of interest. If you decide you want to buy you will need to be pre-approved to be able to meet an agent to view and submit offers on any homes of your choice. You will need to gather some documentation for each applicant. Your qualifications will be determined by your credit profile, debt to income ratios, fico scores, loan program and how much you want to invest into the down payment and closing costs. Your fico scores can be raised within 3-4 days in most cases to qualify for programs, rates and terms as necessary. If you are buying a primary residence you could consider a down payment assistance program such as CalHFA or Sapphire Grant which can cover your down payment and closing costs. You may close with minimal out of pocket expenses. You may consider the CalHFA from a minimum 640 fico score and the Sapphire Grant from a minimum 620 fico score up to 424k. You may qualify FHA from fico scores between 500-579 with 10% down or minimum 580 fico score may qualify FHA 3.5% down up to 424k. You may consider 3% down conventional from a minimum 620 fico score or even 5% down conventional with NO Mortgage insurance (Lender paid MI) up to 424k. Sheryl Arndt, Real Estate Broker - Sr. Loan Officer CA only 24+ Years Experience BRE# 01140252 NMLS# 297251
I would avoid renting from a landlord who is facing foreclosure. I am not certain I understand your question? Are you asking if people purchase foreclosures to use as rentals? Contact me if you would like to discuss further!
Hi Larissa, Bob's answer is informative and has good advice. It is, however, possible that a property in foreclosure could legitimately be offered for rent. In CA, a landlord in foreclosure is required to advise prospective tenants that the foreclosure has begun and that the prospective tenants has certain rights. If the property is represented by a Realtor, look for a form "LANDLORD IN DEFAULT ADDENDUM." I would recommend that you also seek representation from your own Realtor. Use extreme caution and do your due diligence. Beware of the many scams as described in Bob's answer. Hope this helps!
Short answer? NO! Reasons? at least 3. First, if the seller/owner still lives in the property, he could EASILY scam you, taking all your deposits and rents paid, and pocketing them without paying the bank. Later, when the bank forecloses on HIM, they'll come to evict YOU, and you probably won't have much recourse. ( Do NOT take this as legal advice!) Second, if the former owner has already been evicted, the bank has ZERO interest in keeping the property for one hour longer than they have to - they've already lost money on the property and will want to cut their losses. Lastly, if the property is one the market for sale, SOME unscrupulous types might steal the key, remove the for sale signs, and advertise the property for rent - usually at a rate that is "TOO GOOD TO BE TRUE". This is a scam, and you'll be out ALL your funds in short order - while, again, being evicted by the real owner - the lender. Back to the short answer - NO, foreclosures do NOT really go on the rental market - EVER!
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