You will likely find dozens of rental properties that fit
your budget and other requirements by searching traditional
rental advertisements and listings. These listings are
posted by homeowners, real estate agents, and property
managers and typically reflect a fair market value for
monthly rental with a year contract. Moving into homes like
these is fairly straightforward: you visit the home, sign a
contract, leave a deposit, and move in. But if you’re
looking for a “better than fair” market value, you might
want to roll up your sleeves and research the sub world of
foreclosure rentals.
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You may have already heard that it’s a buyer’s market and
that means it’s a renter’s market too. Homeowners and
investors are realizing they bit off more than they could
chew. Facing certain foreclosure, these homeowners and
investors have few options other than to sell, rent, or walk
away. In most states, foreclosures proceedings can
disappropriate a homeowner in as little as three months,
hardly enough time to properly market a home for sale. The
conditions are perfect for a renter to find a deal on a
rental property. Homeowners would sooner rent their homes
below the cost of the mortgage than to lose the property
outright.
Of course homes in foreclosure are not necessarily on the
market as rentals and assuming that a homeowner would accept
any offer would be a big mistake. Homeowners are generally
very attached to their homes but might be willing to
entertain a reasonable offer if it means salvaging their
long term investment. The question is how to approach a
homeowner in distress and propose a rent agreement. As a
result, you will get a great deal on a rental property and
you will rescue a homeowner from foreclosure. As the
overused cliché says, it’s a win-win situation. There are
some pointers you should observe when seeking a foreclosure
rental.
Learn about the property
Before contacting someone facing foreclosure, find out as
much information as you can about the home. Try to discover
things like, how much the home is worth, how much the
homeowner still owes and what the monthly mortgage is. This
information will give you a good starting point to know what
to offer.
Expect non-traditional agreements
It goes without saying that any agreement you make with a
homeowner facing foreclosure will probably have
unconventional terms. Consider offering a six month
agreement or even a month-to-month. If you are willing to
tolerate minor inconveniences in exchange for a lower rent
cost, propose showing the house to potential buyers while
you are renting. Homeowners in distress will probably cover
a several hundred dollars a month of the mortgage if it
means you provide the rest in rent money in rent. The
savings could be considerable for you. Just be prepared to
be flexible with the agreement. Make the homeowner aware
that you are willing to adapt in exchange for a good deal.
Who knows, you might negotiate a rent-to-own deal!
Tactfully propose a fair exchange
How to approach someone facing foreclosures? That’s the
million dollar question. Investors who master this skill
make a lot of money in real estate. All you are looking for
is a good deal on a rental. Remember that these homeowners
probably get lots of calls from real estate agents offering
to list their property or investors proposing insulting bids
on their home. As far as the initial contact is concerned,
you can try an infinity of techniques such as just picking
up the phone and asking if the home is up for rental or
trying to go through a real estate agent. The simplest way
to approach the homeowner is with a hand-written letter
describing your needs as a renter. Offer to provide
references upon request and explain that you are willing to
entertain flexible terms. As a negotiator, it is to your
benefit that the homeowner be aware that you know he/she is
in foreclosure. However, if you wish to maintain a healthy
relationship with your future landlord, it may not be such a
good idea to ‘rub it in’, so to speak.
Where do you find homeowners in foreclosure?
Homes that have been foreclosed, proper, are no longer in
the hands of the homeowner. These are being resold by the
original lender and are probably already listed with an
agent. These should not be your prime target. The properties
you should be looking at are classified as pre-foreclosures.
As one might imagine, these properties can be hard to
locate. A very comprehensive list of nationwide
pre-foreclosures can be found by clicking the link below. It is free to search
with your free 7 day trial.
Start your nationwide foreclosure search now:
http://rentalads.foreclosure.com/ |