Renting a Foreclosed Home Leasing

Renting a Foreclosed Home Lease - There are many horror stories with lease-to-own and lease-option arrangements and the end resutl is that you are asked to or getting thrown out and possibly losing your contributions. Once a home has been seized and the title transferred, all leases and other arrangements made by the previous owner are usually off.

Most rental unit owners or their property management companies have minimal responsibility to inform tenants that the home or rental building they control is going into default.

The reality is that you may have a slight chance of getting your advanced rental money and deposit back. Most small claims courts will handle your request, but it may take a long period of time.

Please consider, if possible assuming the loan or buy the home at a discount in a short-sale arrangement if you can get the required down payment along with a good FICO vredit score.

If an individual buys the house, you could immediately express your desire to stay and see if something can be worked out. Of course, these approaches are fraught with many "ifs."

Meanwhile, you may have more time in you present rental than you think. If you haven't been named a defendant in the foreclosure and a marshal hasn't served you with a summons and complaint, the bank can't start the process of throwing you out.

At worst, you probably have 30 days after such a notice, but sometimes those proceedings can take months. You'd best call your local county or city housing office to be certain of your rights, which can vary widely. Most times, renters are still obligated to lease terms as long as landlords still hold title, regardless of their financial state.

Note: A way to determine whether a landlord is in trouble is to check with the county to see if the house is in pre-foreclosure or foreclosure.