Rent out a foreclosure?

[footballfan]

Has anybody ever tried to rent out their property that's currently in foreclosure?

We are close to discharge. Our home was in foreclosure prior to filing and the stay was finally lifted.

New sale date has been set for mid-July, but not knowing when they were going to actually reschedule the sale, we have made arrangements to move end of April/early May.

Our house will be empty half of the summer. When I look on craigslist, there are usually a few listings of people looking for temporary housing.

I'm sure it would be more headache than it's worth, but I had a thought -- I wonder if anybody has done a temp rental of their foreclosing property (with full disclosure to the renter, of course)?

Anybody done this/know of anybody who has?

[tobee43]

i have heard of people doing it. i would just be scared to personally do it and actually it's been suggested since chase has now taken over 4 years and still hasn't foreclosed to just rent it out. but for us, we just don't want to get into possibly having to list it on our tax return as income, depreciation and all that goes along with renting out property...( as well as all the expense and possible liability if there was slip and fall etc.).

however, i'm certain there are people that do it! and make some extra cash.

[keepsmiling]

Pretty sure there was a post not too long ago about some scammers actually renting out OTHER people's home in f/c.
So I guess it's very do-able. Anyone know where that thread is?
As Tobee says, just go in with your eyes open as to possible probs.

[footballfan]

I don't think I have the energy to do something like that, especially for such a short period.

When we realized our lender wasn't going to play ball when we filed bk, we had to make a best guess of when they might reschedule the foreclosure sale. I figured about 6 weeks from discharge since we had made it up to publication date on the first scheduled sale.

I didn't realize that when they stayed the foreclosure and noted "restart needed" that it meant they had to restart from recording of the NOD. I would love to stay here three extra months rent free, but alas, with kids and pets and now a bk/foreclosure on our records, we figured we'd stay with the apartment lease we had already put a deposit down on.

I struggle with my soon to be ex-house being unoccupied for 3 months -- I can't imagine 4 years!

Maybe my college aged son would want to summer in our house for a few weeks. And I guess we get to experience an extended move-out period. How many garage sales can one have in 3 months time?

Thanks for chiming in. It's always refreshing to hear others' opinions.

[keepsmiling]

found it- this was some story

http://www.bkforum.com/showthread.php?71034-Beware-of-Rental-Scam-Using-Foreclosures&highlight=fl+scam+rental

[HHM]

The thing is, do you really want the trouble of being a land lord. It can actually be a pain in the butt. It is not a simple matter of just renting out the house. Now you become responsible for the condition of the house, any needed repairs of the tenants, etc. As tobee points out, then there is the tax issues. If you get a bad tenant (not sure there is such a thing as a "good" tenant for a "short term" rental )

Also, you "should" be upfront with potential tenants about the status of the house. But doing so is a double edged sword, if they know it is in foreclosure, the tenant is going to play hardball, or simply move in, not pay rent and make you go to the trouble to evict.

In the end, probably not worth it for the few thousand dollars you "might" actually earn.

Also, in CO, that state is not seeing the prolonged foreclosure process in other, harder hit states. So, you are probably looking at another 4-6 months, not 1-3 years.

[Flamingo]

Plus you never know when the bank will come and change the locks on the house....there is no notification of that (the house next door to us was let go due to the occupants deaths and the children, after the estate closed, could not continue to pay the mortgage on the house so they let it go - mortgaged too high for repairs while lived in and when values dropped, they could not sell it). I watched what happened and that home, in less than 1 1/2 years is now fully occupied again by a new young couple who purchased it last October. Locks were changed by the bank March/April of last year. Last payment made was late summer of 2010. I would not take the chance as the risk of problems is too high. Plus foreclosure scams are unreal - just as indicated above. As a note to all, never call those numbers you see on trees or road signs as to home buying or getting cash for your foreclosure....you will end up worse than you are now.

[tobee43]

Plus you never know when the bank will come and change the locks on the house....there is no notification of that (the house next door to us was let go due to the occupants deaths and the children, after the estate closed, could not continue to pay the mortgage on the house so they let it go - mortgaged too high for repairs while lived in and when values dropped, they could not sell it). I watched what happened and that home, in less than 1 1/2 years is now fully occupied again by a new young couple who purchased it last October. Locks were changed by the bank March/April of last year. Last payment made was late summer of 2010. I would not take the chance as the risk of problems is too high. Plus foreclosure scams are unreal - just as indicated above. As a note to all, never call those numbers you see on trees or road signs as to home buying or getting cash for your foreclosure....you will end up worse than you are now.

so exactly right!! scary isn't it. certainly not worth it at all IMHO.

really flamingo???, i love calling the numbers on those trees LOL! but great advise.

[footballfan]

All very valid and interesting points.

We are going to proceed with our move-out schedule and just keep a close eye on the house (we are probably only moving a couple miles away).

Curious -- since the house is "ours" until the actual foreclosure sale and title transfer, is it possible for us to shut off the utilities (water, electric, gas) shortly after we move, but well before the public sale?

Thanks again! Tomorrow is last day for creditors' objections to discharge......

[HHM]

Yes, you can shut off utilities and winterize the house.