Foreclosure Renting to Beat Foreclosure
One of the best Foreclosure Options is one that’s rarely discussed is foreclosure renting which involves renting out your home and temporarily moving to a less expensive rental house or apartment.
Often referred to as Foreclosure Renting, this foreclosure alternative lets you keep your home by paying the mortgage through rental income while reducing your own living expenses by moving to a less costly residence. Subsequently, when the economy and your income improves you simply move back home when the tenant’s lease expires. 10 Ways to Stop Foreclosure
A similar variation of foreclosure renting involves leasing a portion of your home – from a single room to an entire floor depending on the layout of your property and patience with strangers- combining the best of both worlds by increasing your income and covering ownership costs without actually leaving your house. While few people prefer having roommates, it’s a much better than losing your home in a foreclosure sale. Use SavetheCave.com to help beat the banks at their own game.
Advantages of Foreclosure Renting
The primary advantage of foreclosure renting in addition to stopping the Foreclosure Process is that you continue to own your home during the lease and keep your property at the end of the day. As long as the tenant makes timely payments to cover ownership costs, you’ll not only move back into your home but can also use your status as landlord to make tax deductible improvements that would otherwise not be deductible.
You may also be interested in Mortgage Forbearance which temporarily suspends payments and also allows you to stay in your home or a Deed for Lease which is similar to a Deed in Lieu of Foreclosure and lets you rent your home after the foreclosure sale.
Because IRS regulations regarding deductions as a landlord can be very confusing, its essential to consult with a financial or legal professional to do it right. As always, don’t hire any professional without getting first getting a referral from a source you trust.
Finding Tenants and a Cheaper Place to Live
No matter which foreclosure option you select there’s always more work to be done and finding suitable tenants to respect your home or roommates that aren’t serial killers can be important!
The best way to find the right people for your situation is using a realtor or reputable service that provides listings for housemates and tenants. Make sure to do some type of background check and talk to a prior landlord or roommate to get an idea of who you’re dealing with and how reputable (or disreputable!) they may be. There are several online services that provide comprehensive personal background information on prospective tenants which may be money well spent for the right service.
Finding a cheaper place to live can also be challenging because you need to reduce costs without sacrificing personal safety and convenience. Moving to a dangerous neighborhood or one with traffic, noise or other annoying conditions is the reason to work with a realtor who is familiar with the area and knows what you’re looking for. By using a good realtor from a trusted source you’ll save a lot of leg work and avoid headaches resulting from a bad choice.