Thread: Renting a Foreclosure?

Banks have to sell the REOs on their books as the more inventory they hold the less they can lend out. I am sure you can ask but I doubt they will.

I've been hearing that the banks are going to start leasing the properties and some are starting to set up their own property management divisions. I don't know if this is just talk or if it is actually starting to happen. Try calling a couple of the banks and ask. Please update us

I was thinking that they might because the high inventory of homes on the market must make it more challenging to sell. That combined with the fact that people just don't seem to be buying houses right now.

I will keep you all posted. I will be in touch with some banks by the end of the month.

I have never heard of a bank doing this, but it does make good business sense to do this. Although, I am not sure we want the banks low-balling the rental market as well.

This is very interesting I have not seen it in Florida in my area but alot of foreclosure signs for sure. I do see more rental property management companies renting homes so not sure if they are thru a bank or not. I be curious to hear more on this from you all what you find out in your areas.

I am sure it is not ideal for a bank because showing and selling a property that is for rent is more difficult that one that is vacant. Also, from what I understand, a property that has been rented is less desirable or even worth less than a property that was lived in by the actual owner. But with the market being where it is and the inventory piling up I am hoping the banks will be responsibly creative. I never thought of the prospect of them lowballing the market but I suppose they could quite easily, although I am sure that would quickly cause quite an uproar.

Always remember that banks aren't in the real estate business. Any time they have to take over a property they are almost always loosing money. Getting into the rental business is just diving deeper into something that they don't want any part of.

I understand and I completely agree. Traditionally this has been the case. I am wondering if the banks will break ranks a little because of the position the market is in. I am assuming that most of those properties are just sitting there and it looks like they might be sitting there even longer. Perhaps the banks will consider measures to at least help negate their holding costs. I have no opinion one way or the other, I am not experienced enough to even have an educated opinion I just hope they will consider it because it would benefit me in finding housing for European students I work with that come to the USA for the summer. I am thinking that smaller banks would be more flexible in this respect and larger banks probably don't want to be bothered with the whole thing.