applicant foreclosure
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applicant foreclosure (by Tonia [RI]) Apr 7, 2021 10:24 AM
       applicant foreclosure (by Oregon Woodsmoke [ID]) Apr 7, 2021 10:32 AM
       applicant foreclosure (by Oregon Woodsmoke [ID]) Apr 7, 2021 10:36 AM
       applicant foreclosure (by Nicole [PA]) Apr 7, 2021 11:38 AM
       applicant foreclosure (by DJ [VA]) Apr 7, 2021 11:56 AM
       applicant foreclosure (by Ray-N-Pa [PA]) Apr 7, 2021 12:29 PM
       applicant foreclosure (by Ken [NY]) Apr 7, 2021 12:31 PM
       applicant foreclosure (by Gene [OH]) Apr 7, 2021 1:12 PM
       applicant foreclosure (by Jim in O C [CA]) Apr 7, 2021 1:25 PM
       applicant foreclosure (by Vee [OH]) Apr 7, 2021 2:32 PM
       applicant foreclosure (by Hoosier [IN]) Apr 8, 2021 3:56 PM
       applicant foreclosure (by Nicole [PA]) Apr 8, 2021 7:22 PM
       applicant foreclosure (by plenty [MO]) Apr 10, 2021 9:07 PM

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applicant foreclosure (by Tonia [RI]) Posted on: Apr 7, 2021 10:24 AM

Stupid questions landlords, I have an applicant that is undergoing a foreclosure on their property. Do I consider this like an eviciton where by they are not paying mortgage, so why would they pay rent? Again, stupid question. I just see this a lot as I market my upcoming vacancy.

applicant foreclosure (by Oregon Woodsmoke [ID]) Posted on: Apr 7, 2021 10:32 AM

It's a no-go for me.

Possible exception would be if the foreclosed property is a high dollar luxury house and the applicant is seeking a cheap apartment and has the income to pay cheap rent.

But there is still the issue that your applicant made the bank go through all the legal steps to get them out and didn't just sign the property back to the bank as soon as they learned they couldn't make the payments.

applicant foreclosure (by Oregon Woodsmoke [ID]) Posted on: Apr 7, 2021 10:36 AM

I'd guess that if you are seeing a lot of those applicants, that word has gone around the deadbeat community that landlords will accept that excuse and won't check to see if it is true.

Also important: how difficult is it to get a deadbeat tenant out in your state with your housing court judges? I suggest that you be careful who you let in if you are going to have trouble getting them back out again.

applicant foreclosure (by Nicole [PA]) Posted on: Apr 7, 2021 11:38 AM

I disagree w/Oregon. Once you fall behind in a foreclosure, it is difficult to catch up as they generally want all or nothing - no payments to catch up. Significant costs are added in.

That said, the lenders are all trying work arounds and payment arrangements.

Perhaps these folks fell behind, tried and just couldn't catch up.

I'd guess that in foreclosures, there are probably 0% that initially turn the house back when they can't make the payment. They hope and try to salvage their home. Once the foreclosure is filed, even if they eventually do a Deed in Lieu the foreclosure action still shows.

I'd find out what went wrong in their life and see if they are back on track now.

applicant foreclosure (by DJ [VA]) Posted on: Apr 7, 2021 11:56 AM

I would evaluate that on a case-by-case basic. But, be very careful.

They would need to be willing to explain to me what happened, why, and what is different now.

For instance, if they lost their high-paying job and had a medical emergency at once, or something like that - I may take them IF they now have a solid job that qualifies for the lower rent AND they don't seem entitled or like they are "settling" for my "inferior" place.

Here is a big thing, though - if it is happening right now, they haven't had a chance to show they have changed their ways. I would rather be the second landlord after a foreclosure (if at all), to see that have been good paying their rent and building their way back up. I'd rather not be the test case.

The way things are now, I would probably pass. Their credit is already damaged. They may not care if it gets worse - with a judgement from you down the road.

applicant foreclosure (by Ray-N-Pa [PA]) Posted on: Apr 7, 2021 12:29 PM

Sniff sniff

I smell a buying opportunity subject to --24.154.xx.x

applicant foreclosure (by Ken [NY]) Posted on: Apr 7, 2021 12:31 PM

Ray, or get them to sign it over,fully knowing you will not pay the ortgage and just collect the rent till the bank forecloses which could take awhile

applicant foreclosure (by Gene [OH]) Posted on: Apr 7, 2021 1:12 PM

During the last housing crisis around 2011, I had a young couple who was handing over their house keys to the lender. I can't remember the whole scenario. I did rent to them for several years. When they did leave to move closer to his work, they left the house in excellent condition. As others have stated, just do your due diligence.

applicant foreclosure (by Jim in O C [CA]) Posted on: Apr 7, 2021 1:25 PM

Could it become a bankruptcy? That would be my concern.

applicant foreclosure (by Vee [OH]) Posted on: Apr 7, 2021 2:32 PM

There are several areas which cannot dismiss based on a eviction so the unpaid balance is my strategy on those cases, Next Batter.

applicant foreclosure (by Hoosier [IN]) Posted on: Apr 8, 2021 3:56 PM

I agree with DJ...ask them what happened, are they on track, etc. Verify all they say. The key to me is whether they take responsibility and did they disclose it on the front end. Here are two ways they could respond.

1) "Oh, that's not my fault, that's all because of my deadbeat ex husband. He's a loser, and the bank has been pressuring us too.

2) "I just went through a painful divorce, and this resulted based on my attorney advising me not to pay the mortgage since our divorce was pending. I do have the money to pay my portion, and am in the process of arranging that. Let me forward you some documentation from my attorney where he advised me not to pay the mortgage, and I'll also send you the letter I've written to the bank in anticipation of paying what I owe"

I'd probably rent to #2, but not #1

applicant foreclosure (by Nicole [PA]) Posted on: Apr 8, 2021 7:22 PM

In my opinion, your #2 doesn't exist.

First, the lender won't accept 1/2 the money. It's all or nothing unless a modification or something of the sort is entered into.

Second, there probably is no one out there that is going to voluntarily pay thousands and thousands of dollars knowing the foreclosure will still go through, will still exist on their credit and there is absolutely zero benefit to them other than the moral obligation.

applicant foreclosure (by plenty [MO]) Posted on: Apr 10, 2021 9:07 PM

I would consider if this property is in an area where you as the LL could not file for eviction if they fell behind. Then if would consider reviewing two months of their bank statements to see if they have moving expenses and are managing their money (at least what they do have). Like Gene(OH) it worked for me, but that was 12ish years ago when foreclosure were common. Bk would be my next concern. However they should be humbled enough to respect a roof over their heads and pay the rent. My family did file BK but were diligent in keeping the rent paid and on time. House returned in excellent condition with security deposit returned nearly in full. It worked for me. Ask the tough questions.

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