More on How to Rent a Foreclosure

New owners evict existing tenants because they believe that vacant properties are easier to sell. Common sense suggests otherwise. Moreover a great many of these defaulted loans were not made to home owners, but to investors looking to flip properties in get-rich-quick schemes. Why should they be given protection when they probably lied about their income in the first place?

And the need for more rental properties can energize urban development, because higher commuting costs have translated into growing demand for rentals that are near urban employment centers rather than in outlying suburbs. Lenders, in many instances, can accomplish this by controlling the rental income stream on commercial properties. By far the best mechanism to control the rental income is through the use of a court-appointed rent receiver.

All they need to cash flow the properties is about $1,000 a month. And what they're doing is planning on holding for a few years, then selling when the market improves. Many properties around Eastern Michigan University are rental with certain neighborhoods of mixed single family and multi-unit. Sadly, many landlords have failed to maintain property that they know they'll soon lose; and increasingly, banks and even new, institutional owners have let foreclosed properties lapse into disrepair (bankers and offshore trusts make poor landlords). You, of course, can't guarantee how the new owner will treat the property, but you can make sure that your tenants have no legitimate reason to withhold rent now by continuing to maintain the property.

Make sure you understand the landlord tenant laws in your state and have your rental/lease agreements prepared by or reviewed by a good real estate attorney. If there has been a foreclosure, don’t pay rent to the old landlord. Rather, try to find out who now owns the building. I did talk to the landlord. He said the foreclosure proceedings were all news to him, that he hasn't been served with any papers.

If the tenant doesn't move within the 30 days, the landlord may file an unlawful detainer to legally oust the tenant. That is the eviction that will show up on the tenant's credit record. The landlord is only required to do whatever your lease states--so read it carefully, and keep in contact with your landlord to be kept abreast of the latest news. The offer of more money is a very powerful incentive for landlords, as they will be able to use the extra resources for current projects and investments. Extra cash in the form of a security deposit or extra rent will usually help the landlord see things from the foreclosure victims' perspective.