Can you rent a foreclosed home

The last thing you want to happen is to get the foreclosure called off and end up in court because you didn't take care of legally mandated repairs for your tenants while they rented from you. Money is tight, or you would not be in foreclosure, so be sure to weigh the benefit of renting out the house with providing services to the tenant such as heating, air and running water abilities.

Facing foreclosure is stressful. It is possible that the rent from the property means the difference between losing it and turning it around. Weigh the options, check the law and proceed with caution. Candace has been writing professionally since , with real estate being a favorite niche of hers.

Whether it is exploring better ways to find a mortgage, stage a home, or get creative in buying and selling, she is up to the challenge of mastering it and writing about it. In addition, she enjoys writing about commercial properties, rental properties and all types of property insurance. By Candace Webb Updated December 11, Related Articles. Then, once you have found a property you are interested in acquiring, you can move on with figuring out the logistics.

The first thing that you need to know when it comes to renting out properties is the price that you are going to charge tenants for rent. You should never allow yourself to end up with a property that is so bad that you end up being stuck with it as the only tenant. By renting out foreclosed or rental properties, you can make a good profit and make use of an affordable real estate investment.

The next consideration that you need to make when renting out a foreclosure property is how long that you are going to be renting the property for. It is possible to rent out a foreclosure property for several months at a time if you are able to get a property with the right tenants. If you do not manage to find the right tenants to rent the foreclosed property out to, you may end up losing the property. Of course, it is not uncommon for people to keep on renting out foreclosed properties year after year.

However, you need to make sure that you have a steady flow of tenants coming in or you may end up having to move out of the property. In addition, by keeping the property vacant year after year, you will help to protect your credit rating and make sure that you do not have any negative information on it. The next thing you need to do is determine the value of the foreclosed property. See the tenant Legal Assistance Guide for more information on how to access legal services in your area.

A cash for keys offer will almost always require the home to be in broom clean condition before payment will be made. If you do agree to accept a cash payment in exchange for vacating the unit early, be sure and get the terms in writing, signed and dated by both parties.

Even though RCW If you receive no contact from the new property owner, and cannot locate them, it is important that you consider saving your rent money. The new owner has the right to collect that money from you, even if they do not immediately contact you to tell you where to send the rent. If you pay rent to the new property owner and they accept it, it could be considered that you established a month-to-month tenancy, and are protected under JCEO.

The purchase of property at foreclosure sale is not explicitly listed as one of the Just Cause reasons in the ordinance. However, it is unclear how these laws will be interpreted in court. The state laws still apply in Seattle, but the new property owner may also have to comply with JCEO as well. Seek immediate legal advice at our Legal Assistance Guide if you are a Seattle tenant living in a property facing foreclosure. Tenants Union Tenant Counselors are not attorneys, and this information should not be considered legal advice.

Please read our full Tenant Union Disclaimer. I am a Tenant Living in a Foreclosed Property. What are My Rights? Tenants who find themselves in a property facing foreclosure should be aware of the following: Tenants must continue to pay rent and comply with all terms of the rental agreement or lease, even if the rental property is going into foreclosure.

Depending on the contract, at the end of that timeframe, purchase of the home will either be optional or mandatory. Will banks do rent-to-own on foreclosures? But you do have some other options. One is that you can simply find a good deal on a foreclosed home that negates your need to rent. There are several websites that list those homes, including RealtyTrac and Zillow.