Sign of the Times Housing (SOTT) has hit Reno’s Craig’s List. They provide assistance renting your pre-foreclosed house for fun and profit to maximize your benefits as you go tank your property.
The benefits for the renter? Cheap rent (which I wouldn’t pay in this situation – sue me if I default on your default!), 60-90 day free rent during the eviction process, and cash 4 keys potential. Down sides? You might have to move a lot, and to the best of my knowledge, renting out a property that you are in default on is illegal in Nevada.
Even superstar realtors are advocates of this approach. Check out the most recent CL posts 1 and 2. from the leader of the Reno Real Estate Investor’s Group (search it on U-Tube for videos).
So rent your foreclosure. Thoughts? I think you just stay and work all the angles and get the cash 4 keys for yourself and call it a day.
David said:
This is an obscene post. Criminal in nature. Darn right it’s illegal; and immoral too. Sorry your loosing your house. For how long have u lives there and not paid the mortgage? A loan u committed to. So what if ur house is underwater? Everyone else’s house is too. You made your choise like everyone else. My stock went down. No one is going to bail me out. Did u refinance and spend the cash out on a boat? A car? Clothes or a nice vacation?
DRB said:
Not illegal to rent out a defaulted home. Just have to disclose at the beginning and through the term of the lease.
David said:
It is illegal if u don’t send the money to the lender. Read the docs.
DRB said:
It’s still not illegal to rent out the house if you’re in default and don’t pay the mortgage. It’s illegal (breach of the note) to not give them the money if that’s what the loan docs said. The disbursement of the money is what may or may not be legal not the act of renting out the home. There aren’t any statutes that restrict the legal owner of a home from renting it out during default.
Also, I couldn’t find anything, in my loan docs (FHA), regarding where the money goes when renting a house out in default but I quickly skimmed them.
The morality of it is a whole other thing.
If I had one I’d let someone rent it at a reduced rate and tell them the bank is coming soon and to try for the cash for keys. Better than sitting vacant for 12-18 months.
Jeffrey Parker said:
“Superstar” realtor – that’s a bit rich.
Roger said:
This is nothing new. I am related by marriage to a guy who has been doing this for 4 years! He “owns” a house in South Meadows that he owes about $300K on and could perhaps sell for $175K. In 2008, he stopped paying the mortgage, moved out, and rented the house to a guy who is fully aware of the situation. To this day, the bank has not instituted foreclosure proceedings. So for 4 plus years my relative has been collecting the rent while he stiffs the lender. He has, unfortunately for him, had to keep up on the taxes. Wouldn’t want to mess up such a great “investment” by having the County take it for unpaid real property taxes.