At what point did you move into a Rental?

[ClueLess]

My situation: Bought CA townhome in 2005 for $325,00. No money down. 1st lender is Chase, 2nd is with Ocwen. Loan modifications on both loans in 2008. Lasted about 6 mos till we defaulted again. Last payments were made in Sept 08. Total payments per month + HOA is + $2500/mo. NOD filed on 2/18/09. We are in "pre-foreclosure" status. i guess we still have till May/June to remain in this home till a Notice of Trustee Sale is filed.

We always planned to move into a rental (single family home) eventually. I am very specific with the location and price range of a rental. We found one yesterday (thru a property mgmt co.) and we got approved for it. We will make it a slow move since we're not forced out of our current home yet. It will give us time to get rid of junk accumulated the last 4 STRESSFUL years. I didnt want to miss out on a rental within my preferred area and price range. Who knows if one will not be available by the time May/June arrives?? Is it premature to already find another place to live?

For those of you already moved out, at what point did you find your rental or place to live? Some lady from Chase left a message on my answering machine to call (at my earliest convenience)...but I'm gonna keep ignoring. I'm not interested in working anything out at this point.

Thanks for reading =)

[KT in CA]

We are 3 months late this month, no NOD yet, but we have already secured a rent that will be available for us to move into mid-May/beginning of June, depending on how big of a hurry we are in. I don't think you are rushing it. We have kids and we needed to find a place to live before school started again in the fall. If it was just my husband and I we would have waited it out, but the kids need to feel secure. And as it turns out, this house is incredible and the timing of it is perfect. i think you've done just fine!

[Feelingtrapped]

Did either of you have any trouble with the property management company regarding your credit/foreclosure situation and a rental?

In my experience so far, they (5 different agencies) have been more than willing to assist us locate a rental and were only concerned with the income qualitfications.

They seem hungry for renters and want us to move like NOW!

Have yours been similar?

FT

[KT in CA]

In our case we had no problem at all. We were upfront with them and told them we were going into foreclosure but all of our other credit is great. We had the income and references. When they ran our credit report she said the non-payments aren't showing up yet.

I believe they are hungry for renters. I have a friend who just rented an apartment. She is not in foreclosure. By going to several different complexes, she started a bidding war between 3 of them and ended up getting a great apartment for less than she would have paid probably a year ago.

Most property management companies are really trying to work with people, thank goodness.

[Enough Already]

Clueless,
I think your timing is good. It's nice to be able to move slowy, and get rid of old junk in the process. The only downside is you'll be paying rent sooner than you would have, but if it puts your mind at ease to have a place secured to move into I'd go ahead and do it.

[MH_Sucker]

We missed our first payment on November 1st and we moved into a rental February 1. I am so kicking myself that we did not wait!!! They notified us in February that we were recommended for foreclosure and they still have not filed a NOD. So we could have lived there for much longer rent free. I was like you and just wanted to find something in a neighborhood we would want to live. I was freaked out about people working with us too. We had zero problems getting a place. People are pretty cool about it if you just tell them up front what your situation is. Good luck with whatever you decide to do!

[RimToRimHiker]

With all the rentals available around the Phx Metro area we've decided we don't need to rush into finding a rental. Want to take advantage of the "free rent" as long as possible. Unless we find just one heck of an incredible deal, our plan is to stay right here until someone knocks on the door and says get out. We both work from the house so we can be flexible about where we live. From the many posts on this website and from the ads we've read in the classifieds, having a foreclosure on my credit report (loans are only in my name) doesn't sound like it will be a problem at all.

There's a very nice apt complex in Mesa that has a huge banner outside that reads: Foreclosure...No Problem.

Whoa does that speak volumes about what is going on here!!

[AZChick]

I just read in article in the AZ Republic about apartment complexes being foreclosed on and leaving their residents empty handed forceing these residents to go buy foreclosure homes that are even cheaper than renting...what a circle it has all become....

[RimToRimHiker]

ahhhh the circle of real estate life. I know the one you're talking about. Did you see the report on the TV news a week or so ago about how the utility companies were going to the tenants in the buildings facing foreclosure and telling them the utilities were going to be shutoff? What a cluster---- the real estate market has become.

I manage and lease an office building in Florida. The owners are bracing for the commercial market to start seriously heading south.

Gotta go. My daily call from GMAC is coming in. Let's see how I can mess with them.

[georgW]

My sister-in-law was just kicked out of a house she was renting because it was foreclosed on!!! Her lease wasn't even up until June! She had to move last week in a hurry! She is talking to an attorney now. Knowingly renting a property you're not making payments on should be against the law.

[RimToRimHiker]

My daughter had that happen in FL a year ago. She owned a small house. Found her "dream" home. Leased the "dream" with an option to buy. Gave the owner a $10K note against her small house as option money. She moved into the dream, spent a couple months fixing up her old place and put it on the market. This was early 2007. Very bad timing. House sat on the market for 7 months and didn't have one offer so she rented it to a nice couple who planned to buy it within a year or so. She went to the owner of the "dream" and asked for a year extension on the option which he gladly granted. He didn't bother to mention that he had stopping paying the mortgage 3 months before he granted the extention. On April 1 last year a process server comes to the door and hands her a notice to vacate within 21 days. She ended up finding another rental because she couldn't go back to her house because of the lease on it. She likes her new place and hopes to eventually buy it but she's in no hurry to buy anything right now. The FL market is about as bad, if not worse, than AZ. Meanwhile she continues to rent out the house she owns but wonders what will happen with the 10K note when she tries to sell it. I told her the scumbag (we found out he had lots of properties where he had done the same thing) probably is nowhere to be found so it won't be a problem.

[RimToRimHiker]

As my lawyer advised, I'm definitely going to do a lot of research before signing a lease. Sounds like the makings of a new business venture. Where they now have oodles of companies that do background checks on tenants, now there needs to be companies checking out landlords.

[AZChick]

Now we can understand people who choose to buy and bail....seems renting can be just as risky as buying another house....atleast no one can kick you out of your new 80K home....with a payment of $600 a month including taxes and insurance...it's worth a second a look...can you tell I've been doing some research

[RimToRimHiker]

Isn't the internet just a wonderful thing!!!! I saw a place up in Black Canyon City that was $129K on a 1/2 or 3/4 of an acre. Looked like a fairly decent place from the pictures. Around 1,600sf. It was a short sale. We're not sure if we want to go quite that far out especially with my mother living in AJ. Definitely lots around to check out. It's good for all of us.

[tryingtostay]

We always planned to move into a rental (single family home) eventually. I am very specific with the location and price range of a rental. We found one yesterday (thru a property mgmt co.) and we got approved for it. We will make it a slow move since we're not forced out of our current home yet. It will give us time to get rid of junk accumulated the last 4 STRESSFUL years. I didnt want to miss out on a rental within my preferred area and price range. Who knows if one will not be available by the time May/June arrives?? Is it premature to already find another place to live?

For those of you already moved out, at what point did you find your rental or place to live? Some lady from Chase left a message on my answering machine to call (at my earliest convenience)...but I'm gonna keep ignoring. I'm not interested in working anything out at this point.

Thanks for reading =)

Personally, I think the answer to this is move when it is the best time for your family. Obviously, if you can stick it out past the auction date and wait for a cash for keys offer, then I'd choose that option. (We went to a seminar at church, and the pastor said less than 10% of CA homes are being sold at the courthouse auction, so don't feel like you have to move out immediately after the auction necessarily! even if someone comes knocking on your door, they have to formally evict you if you won't volunteerily leave, which is a 30 day process...)

Because you are so specific on what is best for your family, I would suggest move when an opportunity presents itself. And it seems like the opportunity has come now. Make sure you call your home insurance and say you need renter's insurance. If you start moving stuff, one of the homes will be unoccupied, and you will be protected if you don't have everything moved out yet.

We will be 5 months behind in April, no NOD filed yet. We found a rental that is perfect for us, so we are moving during spring break and plan on being out of this house by May 1st. I'm wondering if we don't inform the mortgage company we are gone, if they will think we are still in the place and offer us cash for keys after the auction... (I can hope..) We plan on maintaining the front yard and can probably get a neighbor to park in my driveway....

[RimToRimHiker]

5 months and no NOD. Cool!!! I hope you are able to get cash for keys. Might want to continue receiving your mail at your house. That was one of the questions GMAC asked when they called me last week. Just a thought.

[MRC123]

We haven't made a payment since October 08 and we are still in our house. We just put down earnest money on a rental that is just perfect for us. The lady who ran our credit said we had great credit...go figure, I believe we only have 1 30 day late on there from our mortgage, but everything else is great. Our auction date is April 17th. I don't know if I would stay until my auction date, just too much stress.

[RimToRimHiker]

MRC: Who's your lender?

[MRC123]

Wells Fargo is my lender

[RimToRimHiker]

According the customer service people at GMAC, Wells Fargo is the investor on my loans. I see you are in AZ. Did you see the article in the AZ Republic yesterday about what some of the foreclosed are selling for? Some down in the $50's and $60's. It's insane. Did you rent through a prop mgmt co or directly from an owner? That's cool that you were able to get 6 months "free rent". Did you do try for a loan mod, DIL or Short Sale?

[MRC123]

Yes, I saw the article. But I am wondering if those banks that are selling those foreclosed homes files a claim to recoup some of thier loss if there was mortage insurance on those homes. As I see and how I think it works is like this... I foreclose on my home bank files a claim with the insurance company to recoup any loss, then sells the home for the extra cash. Is that how it works??

Yes, we rent through a property mgmt co. We tried through NACA, but nothing so far. We have 3 kids and can't wait until the last minute to move.

[RimToRimHiker]

That could be.

Our kids are grown and out of the house so we can be pretty flexible about when and where we move. We've started to box up stuff like books, dishes, etc., even though we know moving is still several months away. We hope to hold out until the very end. If the perfect house comes along we may rethink that. My emotions have run the gamut from being incredibly down when we first thought about walking away; to acceptance that it is really the best thing for us to do (thanks in part to this forum); to now looking forward to finding a new place to live that will help us get back on our feet financially.

Best of luck to you and your family.

[Enough Already]

Rim To Rim,

I've been through all of the emotions too. I still get cold feet. It's not and ideal situation, but if it's the best move for your family it's the right thing to do. We have 2 young children, and I'm looking forward to being able to take them our for Pizza, or a trip to Disney here and there. We're looking forward to better days!

[azuw67]

Amen to those better days. I never dreamed I could be so excited at the thought of having nothing and owing nothing. I guess that's many months away, but at least it's coming.

[eevee]

We plan on staying as long as possible, still hoping for that great plan coming our way,lol. So far no luck with CW. I have teens, two will be graduating next year, what to do!! Need to be stress free!

[ClueLess]

UPDATE:

hi everyone! thanx for all ur replies ive been out of commision from a sinus infection/flu since i wrote this post and didnt get a chance to check back till now.

so today, i hear this weird pre-recorded message from one of the lenders on my answering machine. the voice said that i was getting this message because foreclosure proceedings have already been started and i was being informed that a sale date have been recorded with the county today? our NOD was just filed on 2/18/09 and i checked the website and there's NO record of such (sale date).

i wonder if this was a tactic for them to use so i can pick up the phone. the caller did say if you would like more information "press 1" but i didnt want it to be a hoax and get transferred over to a live person LOL! i'll keep checking the website to see if anything new comes up, but this was the first time i realized that we might have to get out sooner than i thought?

anyone else experience this? getting the keys for our rental on April 1st...

[cdmosaic]

On the subject of rentals, I thought I would share my recent update. Like many of you I have been anxious about the prospect of renting after home ownership for so many years. Would we find a place we like, what about the pets, how would we address why we are moving, what about my trashed credit rating, blah, blah, blah. So about 6 weeks ago we began viewing rentals to see what there is to see. Now we have not gotten our NOD yet and would prefer not to move until mid-summer. We’ve seen about a dozen homes in this period and many of them were not impressive and left me feeling discouraged.

This past weekend we did see a house we like, it is big enough, walking distance to BART (rapid transit for those of you not in the SF Bay Area – I commute to SF from the East Bay and would love to shave some time off that grind each day) within the price range, pets ok and landlord seems reasonable enough. It is available next month, which is sooner than we wanted, but I thought hey let’s just submit an application and see what happens. At first, I thought I would just give them all the info about our current circumstances with the application, but then I decided against it and figured they can ask. I provided the application, pay stubs, rental references from our past life and my partners credit score (which is not affected by the foreclosure) and our savings account balance (which thanks to no mortgage payments doesn’t look so bad). I expected to get questions about why we are moving as I clearly put on the application that we own our current home, but not one single question. Not even a request for the complete credit report. Just “we’d be happy to have you as tenants”. Simple as that. Now we have to decide if we want to move 2 months earlier than planned or perhaps negotiate with the landlord to hold the property for us. I’ve read some people have done that.

So to everyone stressing out like I did – take a deep breath it isn’t nearly as scary as I thought it would be.

[RimToRimHiker]

I lease commercial property which is definitely a different animal then residential but here's a thought. At our building, if we have a qualified prospect tell us they do not want to move-in for a month or two because there other lease is not up yet and they do not want to pay double rent, we give them a 1st Right of Refusal. We continue to market the suite. If we have someone else come along who is ready to move earlier, we go back to the 1st guy and give him a chance to step up to the plate and lease the space effective as of the date the other guy was willing to move-in. Not sure if this is done in residential but might be worth a shot.

[cdmosaic]

Interesting suggestion. Doesn't hurt to ask. Thanks.

[RimToRimHiker]

Hope it works out. We hope to stay until the end too but if we find the perfect place at a reasonable price, we'll forego the savings and move. I was very happy to read it was not as scary as you'd thought. We have some concerns but with so many houses around the Phx metro area for rent especially in the outer areas we hope we will have a positive experience when the time comes.

[Enough Already]

From everything I've read it may be a good idea to go through a real estate management co to protect yourself. It would be awful to move into a rental that is about to be foreclosed on.

[cdmosaic]

Yes, going thru a foreclosure as a renter would be a double wammy. In my searches only so many single family homes are rented by management companies. Frankly, we looked at a few which were awful, run down and asking plenty of money for. I was not impressed. Having said that I do worry about renting from just anyone. I did check out info on this house. It is a long term rental and they have owned it for more than 20 years so it does not appear they are victims of the current market. Still you never know what might happen.

[KT in CA]

Unfortunately, the property management companies don't have any way to guarantee that the house isn't in foreclosure either. When we were first looking we talked to a property manager who said there is just no way for them to know. He said he can usually get a feel from someone if they are really anxious to rent out their property, or they don't answer questions straightforward, or they seem hesitant. It seems they should be able to ask for proof of mortgage payment from the homeower, especially in this environment.

Luckily for us, we found a great home that we will be moving into in June. The people that are in it now are moving out at the end of April and then it will be ready mid-May, but we won't move until school is out. We only had to pay $500 deposit and then we pay everything else when we sign the lease. It is through a property management company, and the home has been with them for a long time so they have a long standing relationship with the owner and know there are no problems with it.

It's scary out there all the way around.

[Feelingtrapped]

I agree with the property management aspect of the rental search. From what I have found, they seem easier to deal with than an owner at times, especially when it comes to a repair. Most I have contacted want me to relocate NOW.

I have decide to stop looking until I am ready to move. (After the house has been officially auctioned!) Friends of ours moved out 4 months ago after they were told of an "official" auction date and after three auctions their house still has not been sold. They could have had 4 to 6 more "rent free" months and they are kicking themselves!

In my area, many, many foreclosed homes are being bought up by investment companies, stripped of all flooring and replaced, repainted and cleaned and then marketed as a rental. This scenario removes the "emotional owner" wanting back into the property at a random time or one who lets the house go into foreclosure without notifiing the tenant.

Dealing with an investment company that is renting may open up an opportunity to purchase your rental home (if you like it) some years down the line when the economy and your credit recoveres. They make a proifit and you get the home you have been living in at FMV. Now your a solid homeowner again, hopefully debt free and with a nice savings account.

Ask your prospective property management companies if the rental your looking at has an owner or is owned by an investment company. It might make a differnce down the line. IMHO

FT

[ClueLess]

I also went thru a property management company for my rental just so that I didnt have to go thru the legwork myself of searching for a home within my specific criteria (which is under $1500/mo and within a 2 mile radius from where we currently live). I would love to be "rent free" as long as i can, but we wont be able to jus up & leave when that time finally comes...it's been 6 months rent-free for us, but we plan to take our time on moving out & moving in. we're leaving all our old stuff behind & donating it.

I gotta admit that I became a little anxious about signing the lease with "rules" to follow. I became a homeowner 4 yrs ago and got used to the idea of being the "owner." I have 3 young kids and we let the scribbles on the walls and the spilled milk on the carpet slide....but NO MORE! (at the rental) But I'm excited that we are leaving our $2500/mo townhome/condo for a $1500/mo single family home.

*i was told also that there are NO guarantees that the owner will foreclose on the rental* however, if ur a homeowner...dont you have to pay a fee for working with a property mgmt co? why would they go thru all the trouble?