Hi everyone, I have been trying to sell my house before it gets foreclosed on. I am about 5 months late on mortgages.
The house is empty and free of tenants. In this town, that fact makes the house much more sellable.
However, the house needs a lot of minor repairs, and it's not selling for that reason. I have been thinking of giving up on selling it, and renting it again for the income. The lost rents have been bleeding me dry.
So say I rent it again. My understanding, if the bank then forecloses, it would inherit the headache of either being the new landlord to my tenants, or of evicting them. So maybe they'd be reluctant to foreclose. On the other hand, maybe the bank would figure that I am less interested in keeping the house, that it's not my primary home, and therefore pounce to foreclose.
So I worry about what the bank will do if it learns the place is rented. What do people think? In their great wisdom, are banks more likely, or less likely, to foreclose on a home that is rented out to tenants?
Thanks for the community and the forum. Very grateful for any thoughts.