Renting a town home undergoing strategic foreclosure

[Camden Northsider]

"Strategic default/foreclosure" seems pretty irresponsible to me- you make a bad investment decision, and everyone else has to pay for it via tightened restrictions on loans/credit, taxpayer-funded bailouts, declining neighborhood property values and sense of community, and so on?

If you can pay then you should live with your decision, property should be viewed as a long-term investment.

And to anyone thinking about renting a property in the foreclosure process, my cousin discovered that he wasn't obligated to pay rent for about a six-month period when his landlord was foreclosing dur to some legality- not sure what period of time in the foreclosure process this was, but it worked out really well for him!

[QuietBlue]

Originally Posted by Camden Northsider

If you can pay then you should live with your decision, property should be viewed as a long-term investment.

Houses are great as homes. As investments, though, they are quite wanting unless you're lucky enough to be in a boom cycle. Historically, they don't appreciate all that well compared to other forms of investment, and it's generally a lot easier to liquidate those and move money around when needed compared to a house (not to mention that putting all or even most of your eggs in one basket is a pretty horrible investment strategy).

If anything, looking at a house from an investment/financial standpoint would encourage more strategic default, not less.

[ferr0052]

I knew somebody who used to live in these kind of houses. Remember, they are not in "foreclosure" from day 1...day 1 start with not paying the mortgage...so after 90, 120 days (whatever, the standard is for the bank)...they then proceed. Anyway, in Minnesota--per 2008--it took roughly 12 months. I asked when did they know it was time to move...they said the sheriff will come with papers to exit the house within x amount of days--however,there is ample notice in writing to coordinate a move FYI, MN is one of the longest states to drag out a foreclosure to give a family ample time to rectify the situation.

[rcsteiner]

Originally Posted by ferr0052

I knew somebody who used to live in these kind of houses. Remember, they are not in "foreclosure" from day 1...day 1 start with not paying the mortgage...so after 90, 120 days (whatever, the standard is for the bank)...they then proceed. Anyway, in Minnesota--per 2008--it took roughly 12 months. I asked when did they know it was time to move...they said the sheriff will come with papers to exit the house within x amount of days--however,there is ample notice in writing to coordinate a move FYI, MN is one of the longest states to drag out a foreclosure to give a family ample time to rectify the situation.

Standards can vary quite a bit from state to state. Minnesota (my former residence) is certainly better than Georgia (my current residence) from the point of view of a homeowner:

Minnesota: Process period takes between 90 and 100 days; sale will be publicized 7 days following foreclosure; redemption period of 180 days; and the sheriff initiates the sale of the property.

Georgia: Process period takes 37 days; sale will be publicized 32 days following foreclosure; there is no redemption period; and the state practices a non-judicial foreclosure process.

Of course, some states take much much longer. A number of states have a redemption period of 365 days including Wisconsin, so MN is actually in the middle of the pack:

Wisconsin: Process period takes 290 days; redemption period of 365 days; and the sheriff will initiate the sale of the property.

Source: Foreclosure By State