House I am renting is about to go into pre-foreclosure – what to do?

[donaldduckmoore]

I feel sad to the renters. Aren’t there any laws that protect the renters? Can we list some renter helping rules in the discussion so that renters can get help?

[donaldduckmoore]

I feel sad to the renters. Aren’t there any laws that protect the renters? Can we list some renter helping rules in the discussion so that renters can get help?

[no_such_reality]

This discussion, almost verbatim has occurred several times on Piggington. Start with talking with a tenant lawyer.

Here’s one previous mention.

http://piggington.com/renters_attorney_recommendation

[no_such_reality]

This discussion, almost verbatim has occurred several times on Piggington. Start with talking with a tenant lawyer.

Here’s one previous mention.

http://piggington.com/renters_attorney_recommendation

[Steve Beebo]

I don’t think your lease will still be valid if there is a trustee’s sale.

I know you don’t want to assume his loan – you said he is way underwater.

You may be able to lease from the bank after the foreclosure, but I haven’t seen any REO properties with tenants: they all seem to be vacant.

You may not think that this is ethical, but if the owner is not going too pay his mortgage anymore, you could tell him to keep the $2,000 security deposit, and you’re not going to pay him anymore rent. Then run to the survivalist store, stock up on weapons, ammo, and non-perishable food, and barricade yourself in the house until the SWAT team shows up next winter.

[Steve Beebo]

I don’t think your lease will still be valid if there is a trustee’s sale.

I know you don’t want to assume his loan – you said he is way underwater.

You may be able to lease from the bank after the foreclosure, but I haven’t seen any REO properties with tenants: they all seem to be vacant.

You may not think that this is ethical, but if the owner is not going too pay his mortgage anymore, you could tell him to keep the $2,000 security deposit, and you’re not going to pay him anymore rent. Then run to the survivalist store, stock up on weapons, ammo, and non-perishable food, and barricade yourself in the house until the SWAT team shows up next winter.

[housingfreefall]

Are you in a position to buy the house? I do not mean now, but as this progress you are in the best position possible to take the property over before the foreclosure is eminent. This may be a great opportunity, especially if he is going to walk. I would wait it out. Prior to the court steps the owner can liquidate or in this case dump and in that window there is an opportunity to strike; you can approach the lender most probably with this guy’s approval. I would get ready do comps now and again just before the foreclosure, note any repairs, piece together articles of how housing is on the decline-Right off the bat you will have no agent that is a 6% reduction. You may have found a little screamer!!!

Based on a 650000 home *comp supported
Deduct 6% 39500.00
Deduct any repairs 1% 6500.00
Deduct 2-5% projected decline in housing lets say 2.5% 16250.00
= 587,750 Good area? Location? Schools?

If this unravels between now and Nov you will have the advantage because lenders are preparing to write off bad debt which will place you in an even better position. Or wait and after the auction approach the lender. Beware: if it is a good property the sharks will be there to meet you.

Good luck..

On the rent side negotiate explain since he is not paying a mortgage you are willing to give him a grand a month for rent, and it will be taken out of the deposit he is holding. That translates to 2 month plus you will get a couple of month until the property makes it to the auction…I would not go any where until you must and any landlord will appreciate you were in a situation you had no control over.

[housingfreefall]

Are you in a position to buy the house? I do not mean now, but as this progress you are in the best position possible to take the property over before the foreclosure is eminent. This may be a great opportunity, especially if he is going to walk. I would wait it out. Prior to the court steps the owner can liquidate or in this case dump and in that window there is an opportunity to strike; you can approach the lender most probably with this guy’s approval. I would get ready do comps now and again just before the foreclosure, note any repairs, piece together articles of how housing is on the decline-Right off the bat you will have no agent that is a 6% reduction. You may have found a little screamer!!!

Based on a 650000 home *comp supported
Deduct 6% 39500.00
Deduct any repairs 1% 6500.00
Deduct 2-5% projected decline in housing lets say 2.5% 16250.00
= 587,750 Good area? Location? Schools?

If this unravels between now and Nov you will have the advantage because lenders are preparing to write off bad debt which will place you in an even better position. Or wait and after the auction approach the lender. Beware: if it is a good property the sharks will be there to meet you.

Good luck..

On the rent side negotiate explain since he is not paying a mortgage you are willing to give him a grand a month for rent, and it will be taken out of the deposit he is holding. That translates to 2 month plus you will get a couple of month until the property makes it to the auction…I would not go any where until you must and any landlord will appreciate you were in a situation you had no control over.

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