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.

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.

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.

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 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.

Sniff sniff

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"

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.