How do you avoid renting a foreclosure?

[Renee in NC]

We've found out that we are going to need to move in the next few months. My dh's co-workers suggested we look in a town about 40 miles north of us where rents were much cheaper. They are cheaper - MUCH cheaper! We can get a bigger house for what we are paying for this 30 year old trailer. The commute for dh is almost 3 times as long mileage-wise, but won't take that much longer (straight shot on Interstate very early in the morning and early afternoon.)

 

One consideration, though, is that this area has been hard hit by the economy. The county's unemployment rate is at 17% and many people have left the area (hence the low rents.) I know that the rent is not covering the mortgage on a lot of these houses!

 

I don't want to move only to have to move again in 6 months (and losing our deposit because they are foreclosed on.) We can't afford to move that often and who wants to?

 

Any ideas?

[RoughCollie]

The only thing I can think of is to ask if there is a mortgage on the house. Perhaps you can look it up online on a deed registry to find out.

 

If there is a mortgage, you can ask for either the landlord's credit report or proof that he is paying it in a timely fashion. For that, you would need bank statements or canceled checks and the pages of the loan documents that tell you who gets paid and how much.

 

I don't know if there is a way to find out about second mortgages.

 

This is an upside down economy when renters have to be concerned about the landlord's creditworthiness.

 

We got lucky -- our landlord's father owned the house we rent, and our landlord owns it free and clear.

 

If you know the landlord's name and county he lives in, you can go on Pacer to check if he has filed for bankruptcy. http://www.pacer.gov/

 

You can also Google the landlord's name + location (so you don't get every TomDickHarry that has ever lived in every place imaginable).

 

I hope others come along who have better suggestions than these.

Edited May 18, 2010 by RoughCollie

[gsanmb]

I think realtors know. If you're using one, make sure to ask and tell them you're not signing a lease unless you're sure it's not a foreclosure or short sale house.

[coffeefreak]

Insist on a rental agency. We started renting last year, and didn't realize the danger until this year. Luckily, we are protected because our Rental Agency protects us. They wouldn't take on a risky house, and, since they handle the money, the mortgage gets paid. If the owner decides to sell, they have to wait until our lease is up, and we get first rights of refusal. If we decide not to buy the house, we have 30 days to move out unless we come to an agreement with the owners to show the house for them. If I switched Rental agencies, here's what I would ask:

 

1. I would ask how the mortgage gets paid, and what the monthly payment is.

2. If there's a difference between your rent, and the mortgage, and the owner pays the mortgage (not the rental company), I would demand writing in the lease where you come out the winner in the event of foreclosure. I would want my full security deposit back IMMEDIATELY with no penalties, and 1 month of rent back for a broken lease.

3. Ask what the agreement is between the rental company and the homeowner. Some rental companies have deals with homeowners where, if the mortgage falls behind, the rental company takes over the house and becomes the owners. Some rental companies are simply housesitters. They show the house and take your money, but that's it. You can often tell when you look at their properties. We looked at some properties with a local rental agency and they were FILTHY!!! I'm talking DISGUSTING!!! When I asked if they would have the house repainted and cleaned, they responded the owners felt the house was in rental condition, and didn't need to be painted or cleaned, or it would have been prior to our showing.:001_huh: We obviously didn't rent through that company. The company we rent through paints every house, every time it changes hands, cleans the carpets and wet areas, and will send a cleaning crew through if you don't clean properly.

 

HTH!

Dorinda

[Melissa in FL]

I don't know if you will truly be able to. You can look up in the county property appraisers office online to see if they are in foreclosure or ever have been. You look up under the address you are interested in. It will tell you who owns it and you can see the mortgage and any filings (including foreclosures or leins) on that property. This will let you know if the property is in immediate forclosure, but doesn't mean your landlord isn't in pre-forclosure. Also check to make sure the taxes are paid for the year, that could give a clue if they are in trouble or not. You're really going to have to go more on your gut instinct about the landlord.

 

You could ask for personnel finacial information like RoughCollie suggested, but as a landlord myself, I wouldn't give them to a prospective tenant. In fact I probably wouldn't rent to someone who asked (being honest here). I would be too worried that they wanted to know what we were worth so they could sue us over something (yes, I'm paranoid. Sadly after dealing with some tenants I find I have to be).

 

I would certainly check the Property appraisers office. My FIL is a realtor for the banks and after many get foreclosed on they try to work with the tenant and give them notice and even offer to give an amount equal to their security deposit to help them move. It's cheaper for the bank to do this than go through the eviction process. I understand you wouldn't want to move again, but I'm not sure if there is any way to be sure a home won't go into foreclosure next month. Do look for homes that haven't been empty for long, if a house hasn't had income to pay the mortgage the owner might be behind on it.

 

I don't know if you have ever rented down here in Florida or not. I did want to warn you that the law says rentals can only have two people per bedroom which would mean you need a 4 bedroom home (I wouldn't even mention your son in NC). I might be weary of someone who is so desperate to rent that they rent you a smaller home than they are allowed to. Or of someone who is new enough to being a landlord that they don't know that.

Sorry you are going through moving again.

Melissa

[Renee in NC]

I don't know if you will truly be able to. You can look up in the county property appraisers office online to see if they are in foreclosure or ever have been. You look up under the address you are interested in. It will tell you who owns it and you can see the mortgage and any filings (including foreclosures or leins) on that property. This will let you know if the property is in immediate forclosure, but doesn't mean your landlord isn't in pre-forclosure. Also check to make sure the taxes are paid for the year, that could give a clue if they are in trouble or not. You're really going to have to go more on your gut instinct about the landlord.

 

You could ask for personnel finacial information like RoughCollie suggested, but as a landlord myself, I wouldn't give them to a prospective tenant. In fact I probably wouldn't rent to someone who asked (being honest here). I would be too worried that they wanted to know what we were worth so they could sue us over something (yes, I'm paranoid. Sadly after dealing with some tenants I find I have to be).

 

I would certainly check the Property appraisers office. My FIL is a realtor for the banks and after many get foreclosed on they try to work with the tenant and give them notice and even offer to give an amount equal to their security deposit to help them move. It's cheaper for the bank to do this than go through the eviction process. I understand you wouldn't want to move again, but I'm not sure if there is any way to be sure a home won't go into foreclosure next month. Do look for homes that haven't been empty for long, if a house hasn't had income to pay the mortgage the owner might be behind on it.

 

I don't know if you have ever rented down here in Florida or not. I did want to warn you that the law says rentals can only have two people per bedroom which would mean you need a 4 bedroom home (I wouldn't even mention your son in NC). I might be weary of someone who is so desperate to rent that they rent you a smaller home than they are allowed to. Or of someone who is new enough to being a landlord that they don't know that.

Sorry you are going through moving again.

Melissa

 

No, I won't ask a landlord for a credit check because we have bad credit (foreclosure last year.) I just don't want to lose a deposit and have to pay for all new hookups again 4 months after we move in.

 

The bedroom thing is an issue - I can't find a 4 bedroom rental that is anywhere near what we can afford. The 3 bedroom houses are even too high. I was looking at 2 bedrooms.

 

Melissa, how do you advertise your rentals? I've looked in the Pennysaver, on Craigslist, and just doing a search found realtors (but I doubt we could rent one that way.)

 

My dh is now saying the RV idea is looking better and better.:lol: Too bad my mom just sold hers!

[Renee in NC]

Just an FYI - we are moving (or looking for a place) because the place we are living now is being sold ASAP.

[Melissa in FL]

No, I won't ask a landlord for a credit check because we have bad credit (foreclosure last year.) I just don't want to lose a deposit and have to pay for all new hookups again 4 months after we move in.

 

The bedroom thing is an issue - I can't find a 4 bedroom rental that is anywhere near what we can afford. The 3 bedroom houses are even too high. I was looking at 2 bedrooms.

 

Melissa, how do you advertise your rentals? I've looked in the Pennysaver, on Craigslist, and just doing a search found realtors (but I doubt we could rent one that way.)

 

My dh is now saying the RV idea is looking better and better.:lol: Too bad my mom just sold hers!

 

This so stinks for you. You've worked so hard to make that into a home.

 

We advertise in the Flyer, which is sort of like the pennysaver. The Tampa tribune also has a home section on Fridays and we've advertised there too. Most of our tenants have been from people driving by the house and seeing the sign. We've tried Craigslist but never had any response from ads put there.

 

Your foreclosure and credit shouldn't matter to most landlords that have done this for awhile. Most tenants don't have good credit and we ask for paycheck stubs instead to prove income rather than credit. Even a couple of tenants that started with good credit have left us in the hole in the end. Also, most landlords will recognize the benefits of having someone that has owned a home and knows how to do simple repairs and will treat the house as more than something temporary. One of our homes is rented to a family that was in the middle of a foreclosure and it's been great. They have really taken great care of the place and want to live there long term. They don't call us for every little thing and know how to trim plants, etc.

 

You are at a great time in the rental market. Around here it is a renters market and not the landlords. There are lots of places for rent and the rents have gone down by hundreds of dollars a month.

 

I'm assuming you're teasing about living in an RV, but some people down here are actually doing that. My SIL couldn't get a job down here (where her spouse is) and finally found one up in northern FL. They couldn't afford to lose the others job here plus they have a daughter in High School. So, SIL is in an RV up north. She's been living in it for well over a year now and comes back down to the Tampa area only about once a month. She's really very happy in the RV. She's in a park that supplies electric, water and cable/internet. It's the only way they could afford to live right now. The RV park has a surprising amount of full time/permanent people living there.

 

I hope you can find something that will fit all of your needs. You and your family have been through so much and you really deserve just to be settled and stable for awhile.

Melissa

[Melissa B]

I don't know of any way. We asked our last landlord upfront and she just lied. But we figured it was going to be foreclosed upon because the price was great! (And it was a two bedroom and she was happy to rent to a family of six.) But the location was wonderful and the rent was dirt cheap. It is a pain to move, but we were given about six months notice (from the time they taped a foreclosure notice to the door.) We didn't lose our deposit because we informed the landlord we were using it as last month's rent (What was she going to say?) and all of our utilities transferred to the new home for a minimal price. We think the house we are in could be a foreclosure as well, but we haven't heard anything. Once again the location is incredible and the rent can't be beat. We just figured we will have to be a bit more flexible in moving more often than normal and take advantage of the incredible rental prices. Who knows, maybe the landlord here is actually paying his mortgage and it was just a lucky day.

 

We found our last rental as a drive-by. We just spent an hour or two a week driving through neighborhoods we were interested in. We found our current house on craigslist.

[newbie]

Try looking addess up on Zillow, it might say.

 

We got lucky and found ours on craigslist.

[Renee in NC]

I'm only kind of joking about living in the RV - we could do it (it would be better than a TENT!:lol:) We have seriously talked about dh working track to track and us traveling with him. Living in an RV in one place doesn't sound like as much fun!

 

I think I need to drive around some of the area and get a handle on what looks okay and what doesn't. I'll live in an RV (with 6 dc!) before I will live in a gang and/or crack neighborhood.

 

My dh has a good, stable job, but it doesn't pay much. Looking at his regular paychecks he makes next to nothing, but he does get really good overtime (19 hours in the past two weeks and in June he'll hit 70-80 hours a week for a month or so.)

 

Melissa, that is very true - you get plenty of notice and we can use the deposit as the last month's rent. That makes me feel much better. As far as moving every 6 months - uugghhh. I'll deal with it, though. We'll be champs at packing and moving after all this is done!

 

Thanks for all the tips!

[SapphireStitch]

I think it is good to have that cheaper house! I want to have it. I am interested with it. :auto:

 

 

:confused::confused::confused:

[Renee in NC]

Not sure why this has been bumped up, but I'll update!

 

It isn't going to be sold "yet." My mother found another source for what she needed, so we are good for a year or so. It is going to be sold eventually and we won't be able to stay here (more than likely.)