banks turning their foreclosed homes into rentals??

[cashflow]

Okay, so I had someone tell me that if a home is bank owned, the bank has a reserve price that they need to meet in order to make their ‘investors’ okay with the sale. If they can’t sell it for the reserve price then they will just turn it into a rental….so I’m thinking to myself, are you trying to tell me that the banks are going to open up a new division called Countrywide Property Management and have 100’s of rentals now??? I’m sorry but aren’t banks all about dealing with money assets, not depreciating HOUSE assets? Just curious to what you all say to this.

[jpinpb]

Hundreds of rentals? More like tens of thousands of rentals. I don’t see it. But there’s so much insanity, I guess anything could happen.

[jpinpb]

Hundreds of rentals? More like tens of thousands of rentals. I don’t see it. But there’s so much insanity, I guess anything could happen.

[jpinpb]

Hundreds of rentals? More like tens of thousands of rentals. I don’t see it. But there’s so much insanity, I guess anything could happen.

[jpinpb]

Hundreds of rentals? More like tens of thousands of rentals. I don’t see it. But there’s so much insanity, I guess anything could happen.

[jpinpb]

Hundreds of rentals? More like tens of thousands of rentals. I don’t see it. But there’s so much insanity, I guess anything could happen.

[SD Realtor]

I don’t see this happening. This would turn the underlying asset backing up the security into an entirely different entity then it started out as. There is also an oversimplification that you are talking about. There are multiple lenders if there is more then one mortgage right? Furthermore the bank/lender/servicing organization also takes on liability by turning the home into a rental. What happens if the tenant injures himself in the home due to a problem with the home? What happens when the tenant stops paying rent and needs to be evicted? Basically I don’t see any of this happening at all. We have had threads in the past bringing this up and some posters swear that this has indeed happened before. Perhaps it has but I am not familiar with it… then again I am just a pup with regards to tenure so take my opinion with lots of grains of salt.

SD Realtor

[SD Realtor]

I don’t see this happening. This would turn the underlying asset backing up the security into an entirely different entity then it started out as. There is also an oversimplification that you are talking about. There are multiple lenders if there is more then one mortgage right? Furthermore the bank/lender/servicing organization also takes on liability by turning the home into a rental. What happens if the tenant injures himself in the home due to a problem with the home? What happens when the tenant stops paying rent and needs to be evicted? Basically I don’t see any of this happening at all. We have had threads in the past bringing this up and some posters swear that this has indeed happened before. Perhaps it has but I am not familiar with it… then again I am just a pup with regards to tenure so take my opinion with lots of grains of salt.

SD Realtor

[SD Realtor]

I don’t see this happening. This would turn the underlying asset backing up the security into an entirely different entity then it started out as. There is also an oversimplification that you are talking about. There are multiple lenders if there is more then one mortgage right? Furthermore the bank/lender/servicing organization also takes on liability by turning the home into a rental. What happens if the tenant injures himself in the home due to a problem with the home? What happens when the tenant stops paying rent and needs to be evicted? Basically I don’t see any of this happening at all. We have had threads in the past bringing this up and some posters swear that this has indeed happened before. Perhaps it has but I am not familiar with it… then again I am just a pup with regards to tenure so take my opinion with lots of grains of salt.

SD Realtor

[SD Realtor]

I don’t see this happening. This would turn the underlying asset backing up the security into an entirely different entity then it started out as. There is also an oversimplification that you are talking about. There are multiple lenders if there is more then one mortgage right? Furthermore the bank/lender/servicing organization also takes on liability by turning the home into a rental. What happens if the tenant injures himself in the home due to a problem with the home? What happens when the tenant stops paying rent and needs to be evicted? Basically I don’t see any of this happening at all. We have had threads in the past bringing this up and some posters swear that this has indeed happened before. Perhaps it has but I am not familiar with it… then again I am just a pup with regards to tenure so take my opinion with lots of grains of salt.

SD Realtor

[SD Realtor]

I don’t see this happening. This would turn the underlying asset backing up the security into an entirely different entity then it started out as. There is also an oversimplification that you are talking about. There are multiple lenders if there is more then one mortgage right? Furthermore the bank/lender/servicing organization also takes on liability by turning the home into a rental. What happens if the tenant injures himself in the home due to a problem with the home? What happens when the tenant stops paying rent and needs to be evicted? Basically I don’t see any of this happening at all. We have had threads in the past bringing this up and some posters swear that this has indeed happened before. Perhaps it has but I am not familiar with it… then again I am just a pup with regards to tenure so take my opinion with lots of grains of salt.

SD Realtor

[peterb]

In the early 1990’s I knew someone who did quick remodels for REO’s that were about to be put on the market…paint, carpet, landscape type work. He said that there was a standing policy that every couple of weeks they would just knock $5K or $10K off the price until it sold. None became rentals. He said that people would low ball, get rejected and then 6 weeks later the banks were comming back to the offeror to see if they still wanted to buy!!

[peterb]

In the early 1990’s I knew someone who did quick remodels for REO’s that were about to be put on the market…paint, carpet, landscape type work. He said that there was a standing policy that every couple of weeks they would just knock $5K or $10K off the price until it sold. None became rentals. He said that people would low ball, get rejected and then 6 weeks later the banks were comming back to the offeror to see if they still wanted to buy!!

[peterb]

In the early 1990’s I knew someone who did quick remodels for REO’s that were about to be put on the market…paint, carpet, landscape type work. He said that there was a standing policy that every couple of weeks they would just knock $5K or $10K off the price until it sold. None became rentals. He said that people would low ball, get rejected and then 6 weeks later the banks were comming back to the offeror to see if they still wanted to buy!!

[peterb]

In the early 1990’s I knew someone who did quick remodels for REO’s that were about to be put on the market…paint, carpet, landscape type work. He said that there was a standing policy that every couple of weeks they would just knock $5K or $10K off the price until it sold. None became rentals. He said that people would low ball, get rejected and then 6 weeks later the banks were comming back to the offeror to see if they still wanted to buy!!

[Author]

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