Some Tips If You’re A Tenant Renting A Foreclosed Home
Am I going to be renting a foreclosed home?
Renting a foreclosed home is one of the biggest fears that tenants have, and also a common questions that you’ll run into if you’ve got a home for rent.
If you’re a landlord don’t take the question personally.
The fact is that in today’s real estate market, a lot of tenants end up renting a foreclosed home that they had no idea was getting foreclosed on.
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Until they come home one day and see the notice on the door.
Foreclosure Rent Scams
Unfortunately there’s a few scammy landlords out there that decide to stop paying the mortgage on their rental home, but keep collecting the rent from the tenant, then disappear when the rental home gets foreclosed on.
Leaving the tenant holding the bag and scrambling to find a new place to rent.
If you’re a tenant, I Know you’ve heard these stories before.
The sad thing is, most people only know or care about the ‘tenant scam’ stories but simply aren’t aware of the real estate investors that trick tenants into renting a foreclosed home.
Tenant Tips For Foreclosure Rentals
If you’re a renter and trying to avoid a home going into foreclosure, it can be tough.
Some areas have ‘disclosure laws’ where a pending foreclosure or trustee sale is public record, and some do not.
So trying not to rent a foreclosure home can sometimes be like a roll of the dice.
The good news is, in 2009, there was a Federal law passed called The Protecting Tenants At Foreclosure Act that gives you, the tenant, specific rights if the home you’re renting is foreclosed on.
To get a copy of the law just do an internet search of “Protecting Tenants At Foreclosure Act”.
Tenant Protections For Renting A Foreclosed Home
Here are a few tips to follow if you’re a renter and want to protect yourself in case the home you’re renting gets foreclosed on:
- Have a valid written lease
- Make sure the rent is at fair market
- Don’t rent from a relative
With this last point I don’t mean to imply that your relatives are going to stiff you.
In order for the Federal law to protect you, the rental home lease has to be an ‘arms length’ transaction.
As a renter you’ve probably got a good feel for what the ‘fair market’ rent is.
With the lease, it might be worth paying a real estate agent or a real estate attorney a few bucks to get a second opinion.
The one exception to these above rental home tips is:
If the person buying the foreclosed home that you’re renting wants to live there themselves, then you do need to leave within 90 days of notice.
When I wrote the 5 Step House Rental eBook I figured that a lot of landlords and property manages would be buying the book. And they did.
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But I’ve also discovered that there quite a few tenants buying the eBook as well, so that they can learn how to think like a landlord!
As always, I hope you’ve enjoyed this How To Rent My House article on renting a foreclosed home!
Jeffrey Roark
How To Rent My House
In today's real estate market, the platforms have turned and renters may want to do a monetary background examine on potential landlords of a rental property.
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Writing a blog can be difficult, but even with the odds, you’ve managed to get quite an audience. I highly recommend that you consider writing an ebook one day.
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