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renting a house that is going into forclosure?

How does that work and is it a good idea? We are looking into moving and I found a house in the area that we want that said it was going into forclosure and it was really cheap for us to take over the loan? Does that sound like a scam or how does that work? anyone know?

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Precious333

Asked by Precious333 at 7:24 PM on Sep. 9, 2009 in Money & Work

Level 14 (1,682 Credits)
Answers (10)
  • I heard of someone who did that once. can't remember the details but they got sqrewed. I think the bank kicked them out, either that or the house was sold out from under them. Gosh I can't remeber butit didn't go well
    Lynette

    Answer by Lynette at 7:26 PM on Sep. 9, 2009

  • I wouldn't do it. How can someone rent a house in foreclosure? That means they weren't paying the mortgage. That also means you are paying and they are banking it.

    Anonymous

    Answer by Anonymous at 7:26 PM on Sep. 9, 2009

  • Who are you talking to about the house, sometimes the bank will rent it out to collect some money on it, if it is the owners I would stay away, if it goes into foreclosure and sold, you will have to move and all the money you put up to get in will be lost.
    midnightmoma

    Answer by midnightmoma at 7:27 PM on Sep. 9, 2009

  • hmmm well I don't think it would mean that we will be buying it, but i also don't want to get kicked out of a house and end up homeless (or living with my inlaws)
    Precious333

    Answer by Precious333 at 7:36 PM on Sep. 9, 2009

  • I would stay far away from that.
    gdiamante

    Answer by gdiamante at 7:44 PM on Sep. 9, 2009

  • I agree with everyone one else but I would also call a realter and talk to them they might be able to explaine it to you better
    looovemybabies

    Answer by looovemybabies at 7:51 PM on Sep. 9, 2009

  • The people being kicked out are trying to collect some cash on the property. They will get your money and you will find yourself homeless. They won't just "rent" it to you they will have multiple people they will scam. In an economic downturn peoples true colors really come out.
    Anonymous

    Answer by Anonymous at 8:04 PM on Sep. 9, 2009

  • Anonymous

    Answer by Anonymous at 8:45 PM on Sep. 9, 2009

  • If you like drama and BS then go for it! I've personally been involved with helping out at least a dozen folks over the years with renting homes that are GOING INTO foreclosure and can easily assure you the best that can come of it is paying directly to a bank, WHICH IS NOWHERE NEAR AS GOOD AS A LANDLORD {hint, don't expect any house help}.

    Banks are total bitches for harassment, illegal activity, and annoying ignoring when you need to talk with someone about your rental though.
    HollyLucination

    Answer by HollyLucination at 10:50 PM on Sep. 9, 2009

  • I wouldnt even consider it .

    Recently I have heard about people who see a foreclosure notice in the paper and then they list the home as available to rent as an agent of the bank if the house is vacant they will break in add new locks and rent it out for a low price. As the "renter" you would be squating on someone elses property and the people that you gave your deposit and rent to run with the money and you are out 2m rent and your deposit. and then you are removed from the property.

    If it is the bank that is trying to rent out the property through a legit property mangment company untill the market recovers the bank is just trying to cover some of the loss on the property. and if that is the case than it could be a good thing for you and they may even do it as a rent to own if you are intrested.
    mtnaspen

    Answer by mtnaspen at 12:45 PM on Sep. 10, 2009

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