Foreclosure University

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Rent Skimming

Can you legally rent a home to someone knowing your home is in foreclosure

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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.

Foreclosure with Tenants

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I’ve recently lost my job (2nd time in 3 years) and its making it hard to keep my house. I had to move from Indiana (where house is located) for a job, but couldn’t sell it (too much owed for what worth). I have tenants in the house, but I still lose money every month. Its come to the point that I can’t afford it and I simply want to let it go.

I’ve attempted several times to reach my mortgage company’s hardship department via fax (their only method of communicating with them) and they have not called me back.

What happens if they foreclose on the house while I have tenants in there? I don’t want that house at all, but its much better than going through BK. Your input is appreciated.