Renting a foreclosed home from the bank (Orlando: bank owned, extended stay)

[tricon7]

I've heard that one can rent a really nice foreclosed home in Orlando from the bank for a lot less money than one would normally pay per month for such a home - and with no lease. Supposedly one can just take up monthly payments on a bank foreclosure without any deposits, since the bank would rather have that than nothing. The drawback being that if/when the bank finds a buyer for said home, you have to pack up and leave. But this could be months/years before that happens with all the foreclosed homes waiting to be sold.

In my situation I'm moving to Orlando with my family next month, and we're hoping to buy a home soon after arriving, but according to the agent the paperwork could take up to two months to complete. I'd hate to have to sign a 7-mo. lease (the shortest I've found) for a place just to get us by after getting there, then find the perfect house to buy, and have to sit on my hands and wait until the current lease runs out. I'd only need a few months at most in a temporary place. I understand that even if the bank did immediately find a buyer, they'd still have to give me 30 days to leave. I'd be banking that we'd have at least a few months before any serious buyer came along.

Does anyone have any more information on this, or who I could contact for more?

[Rabflmom]

Originally Posted by tricon7

I've heard that one can rent a really nice foreclosed home in Orlando from the bank for a lot less money than one would normally pay per month for such a home - and with no lease. Supposedly one can just take up monthly payments on a bank foreclosure without any deposits, since the bank would rather have that than nothing. The drawback being that if/when the bank finds a buyer for said home, you have to pack up and leave. But this could be months/years before that happens with all the foreclosed homes waiting to be sold.

In my situation I'm moving to Orlando with my family next month, and we're hoping to buy a home soon after arriving, but according to the agent the paperwork could take up to two months to complete. I'd hate to have to sign a 7-mo. lease (the shortest I've found) for a place just to get us by after getting there, then find the perfect house to buy, and have to sit on my hands and wait until the current lease runs out. I'd only need a few months at most in a temporary place. I understand that even if the bank did immediately find a buyer, they'd still have to give me 30 days to leave. I'd be banking that we'd have at least a few months before any serious buyer came along.

Does anyone have any more information on this, or who I could contact for more?

Never heard of any banks renting out foreclosed homes.....usually they just let them sit there and bring down the prices in the neighborhood. If the home was a renter that the landlords lost, the banks evict the renters. Renting a forecclosed home would be a liability that banks would never put themselves into.

[beckycat]

Originally Posted by tricon7

I've heard that one can rent a really nice foreclosed home in Orlando from the bank for a lot less money than one would normally pay per month for such a home - and with no lease. Supposedly one can just take up monthly payments on a bank foreclosure without any deposits, since the bank would rather have that than nothing. The drawback being that if/when the bank finds a buyer for said home, you have to pack up and leave. But this could be months/years before that happens with all the foreclosed homes waiting to be sold.

In my situation I'm moving to Orlando with my family next month, and we're hoping to buy a home soon after arriving, but according to the agent the paperwork could take up to two months to complete. I'd hate to have to sign a 7-mo. lease (the shortest I've found) for a place just to get us by after getting there, then find the perfect house to buy, and have to sit on my hands and wait until the current lease runs out. I'd only need a few months at most in a temporary place. I understand that even if the bank did immediately find a buyer, they'd still have to give me 30 days to leave. I'd be banking that we'd have at least a few months before any serious buyer came along.

Does anyone have any more information on this, or who I could contact for more?

I heard about it on the radio. From what I understand is that you pay for the utilities (electric, water) and keep up with the home until sold. (mow the lawn, etc) The banks are trying to occupy these homes so they don't end up getting destroyed. (mold, having to pay for lawn maintenance, etc)

That's all I know at this point. I'd call one of the big banks and ask them how it works or maybe do a google search.

http://homeguides.sfgate.com/rent-fo...bank-8385.html

[Rabflmom]

I stand corrected. Everything I had read said banks wouldn't do it because of the liability of tenants suing them if they got hurt while living there because the banks didn't spend money to fix things.
Also once someone moves in it is not always easy to get them out on time. If they don't move you have to go through the whole eviction process which can take time and more money to get them out. After reading the article posted on how to do it, everything seems to pertain to governement owned houses(Hud hmes)? Has anyone ever heard of it being done? Other articles talked about investors buying hundreds of houses together and then renting out as rent to owns rather than asking for 20 % down to get people into the homes. Did not see anyone renting for short term.

[GregTraub]

You might see this in slower real estate markets, but I have not seen any bank do this here in Orlando.

If there is a tenant already in a bank owned home, (typically Fannie Mae owned) they will allow the existing tenant to stay as per the terms of a valid lease as the bank tries to sell the property.

If I were you I would not waste my time trying to find a one in a million property that a bank wants to rent out instead of sell....If you will just be needing a few months to stay somewhere I would call apartment complexes that might allow month to month rental....or find an owner of an individual house that may be short selling and ask to rent from them for a few months....or worst case, check out an extended stay hotel, there are some decent one's around the tourism area.

[TedTLPN]

Originally Posted by tricon7

I've heard that one can rent a really nice foreclosed home in Orlando from the bank for a lot less money than one would normally pay per month for such a home - and with no lease. Supposedly one can just take up monthly payments on a bank foreclosure without any deposits, since the bank would rather have that than nothing. The drawback being that if/when the bank finds a buyer for said home, you have to pack up and leave. But this could be months/years before that happens with all the foreclosed homes waiting to be sold.

In my situation I'm moving to Orlando with my family next month, and we're hoping to buy a home soon after arriving, but according to the agent the paperwork could take up to two months to complete. I'd hate to have to sign a 7-mo. lease (the shortest I've found) for a place just to get us by after getting there, then find the perfect house to buy, and have to sit on my hands and wait until the current lease runs out. I'd only need a few months at most in a temporary place. I understand that even if the bank did immediately find a buyer, they'd still have to give me 30 days to leave. I'd be banking that we'd have at least a few months before any serious buyer came along.

Does anyone have any more information on this, or who I could contact for more?

Think of it this way... it's 7 months to figure out if you REALLY like the area you want to live in or discover one you like better.

[tricon7]

Originally Posted by GregTraub

If you will just be needing a few months to stay somewhere I would call apartment complexes that might allow month to month rental....or find an owner of an individual house that may be short selling and ask to rent from them for a few months....

Do you really think it's a possibility that the owner of a short-sale house may be willing to rent it out for a few months (at most)? It's probably more likely than a bank, I'll admit. Other than just calling listings on short-sales to ask, I'm not sure what process to follow on that, assuming there is one.

[GregTraub]

Originally Posted by tricon7

Do you really think it's a possibility that the owner of a short-sale house may be willing to rent it out for a few months (at most)? It's probably more likely than a bank, I'll admit. Other than just calling listings on short-sales to ask, I'm not sure what process to follow on that, assuming there is one.

I really woudln't know about the process of approaching such properties no Calling up short sales already for sale is one way to go about it....but if it were a client of mine, I'd highly advise to not rent it while we are trying to sell it for a myriad of reasons.
I'd say your best bet is to check out craigslist and look for properties renting for less than normal....typically it will indicate the seller is distressed and likely just looking to get anything they can get from it. Just be VERY VERY VERY careful since you would have to be doing this on your own. There is lots of fraud out there of people renting houses they don't even own and who knows what other kinds of scams. Plus the millions of other unknowns like when the house will actually be foreclosed on, the condition the owners have left the place in, and of course I would expect little if any maintenance from the landlord.......

Thinking about it more, I wish I didn't even suggest that route.

Look at TedTLPN's advice.....it's a good way to think of those 7 months.

[Starrman69]

That's the best advice that you'll receive, "Rent!" You'll have time to get settled into the area and finding the different advantages/disadvantages of an area. If you have kids, you'll want to check into the schools, attractions and distractions along with stores for clothing, supplies and foo, along with distance to employment. The traffic may be difficult during various times of the day and week.
Then, you'll have plenty of time to find the right house for you.