Question: Can you legally rent a home to someone knowing your home is in foreclosure
Answer: -That’s pretty much considered rent skimming, which is illegal. Where you are using the rent money from the rental for personal use and not applying it towards the loan. Maybe you can get away with it if you disclose to the renters that the property is in foreclosure, you’re not planning to make any payments, and they’ll have to move out when the bank forecloses on it. Do a search online for “rent skimming” and you can make your own decision on it. As for me, I’d stay away from it.
It’s nearly impossible to find experienced people in this particular subject, but you sound like you know what you’re talking about! Thanks
Need some help here. I am a tenant in a house that is now in foreclosure in California. It turns out that my landlord has not made a single mortgage payment since the day I moved in nine months ago. A few weeks ago there was a Notice of Trustee’s Sale posted on my front door…and I attended the auction this morning. Know one placed a bid, and the property reverted back to the lender. Here is my question…what do I do now? I am considering purchasing the property. Do I have to deal with the slime-bag landlord, or can I now deal directly with the bank? What is the best method to get the best deal on the property?
Any help is appreciated.
Thanks.
You can try to purchase the property, but the question will be who is the current owner?
You’ll have to find out if California’s redemption period laws apply in this case, or if the bank is now the legal owner of the property.
If the bank owns the property now, you can contact them as soon as possible to let them know your situation and that you want to attempt to purchase the property. They’ll probably want a sales contract or proof that you’re working on getting financing for the property (loan application, pre-approval letter, etc.).
In the case of the landlord still being the owner, you can try purchasing the property from him, if you can locate him or contact him. You should try to purchase the property for as little as possible to get him out, pay off the defaulted loan, and get a good deal. If he’s unwilling to sell right now, you can wait until the redemption period has expired and then try purchasing from the bank.
If he’s not the owner anymore, though, your lease with him is no longer any good. The bank will evict you if you do not contact them and get some time to purchase the property without having to move out. Find out who is the listing real estate agent for the property, as well.
Good luck.