Renting a property in foreclosure

eightracker

LoanSafe Member
Jun 22, 2010
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Wow, that was pretty intense good info T.E. and E.R.!!!!

I decided to go with a different tenant and they signed a one year lease tonight. After 12 months it will go month to month.

Now I need to get a POB for mail. I'm assuming I should not contact the main lender of any change of address as I don't want any red flags going up...correct?

Thank you!
Hi cmefly

Thanks for your gracious remark; it's good to hear our debate was informative.

I recommend you notify everyone who sends you mail of your new POB address.
Glad you gained some insight from our discussion, cmefly!

Yes, you don't want your mail going to what will now be a rental, but as Tom posted, you will have to advise those who send mail to you of a new address, whether it's where you will be living, or a post office box number.
I doubt the difference really matters, except for the inconvenience of having to go to pick up (and possibly sign for some) mail.
You can fill out a mail forwarding card, as a start.
 

cmefly

LoanSafe Member
Jan 9, 2010
78
1
8
Hi cmefly

Thanks for your gracious remark; it's good to hear our debate was informative.

I recommend you notify everyone who sends you mail of your new POB address.
Tom,
I plan on doing that, but would I send that info to the main lender? Don't want them to assume I vacated. How should I handle that? I have only received one letter via mail and one certified letter from them since the bankruptcy as previously stated. I was home to sign that letter so I think they were just trying to see if I was still in the home. Do I send them a letter just stating that my mail goes to the POB? I assume I should also do a forwarding address with the post office to my POB. Thanks!
 

cmefly

LoanSafe Member
Jan 9, 2010
78
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Thanks too ER! I didn't see your post and responded to Tom, but feel free to weigh in on my questions, although you answered most of them. Rental is only 1 mile from where my other physical address is.
 

TomEason

LoanSafe Guide
Jun 18, 2009
12,390
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SF Bay Area CA
cmefly

Yes, send a change of address to everyone, including your lender. FYI, you're allowed to have a PO box, no matter where you live.

I think you're over thinking this - much more than your lender will be. Lenders are overwhelmed and don't have the resoursces to devote to trying to figure stuff like this out. While it's apparent you enjoy worrying, I recommend you find something else to worry about.
 

cmefly

LoanSafe Member
Jan 9, 2010
78
1
8
Tom,
If you read thru my thread, I have been renting my home out since September 2013. My bankruptcy discharge was March 2013. I received three computer generated letters from Ocwen sated 10/24, 10/28 and 10/29. Offering Mortgage Assistance Resources. They assigned my account to a Relationship manager to work out a deal if I wanted to. I also received a computer generated letter 10/29 from a collection agency representing Ocwen. It states their client Ocwen, has referred it to them for foreclosure. It states I should contact Ocwen for foreclosure prevention. it does state if I filed bankruptcy then ignore.

My question is...I assume that he actual foreclosure has not started correct? I live in NYS and i think there is a judicial process that has to happen. I modified my loan in September 2012 and then filed chapter 7 in December 2012 and got mu discharge in March 2013.
I heard it can take up to 3 years to foreclose on someone in NYS. If you read back thru the thread...Ocwen is not even in first place...thay think they are but they are not. Should I do anything or just let it run its course? Thank you in advance!
 

eightracker

LoanSafe Member
Jun 22, 2010
142
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Ocwen is not even in first place...thay think they are but they are not.
No, but they might try to get you to think that they are, to "up" their perceived importance.

Anyone can read a chain of title report to see what the earliest recorded TD is, that hasn't been re-conveyed. Even Ocwen employees...
 

cmefly

LoanSafe Member
Jan 9, 2010
78
1
8
Well I thought I would give an update from my post 2 years ago. I have been renting to the same tenants and have cleared about $36K.
 

cmefly

LoanSafe Member
Jan 9, 2010
78
1
8
Well I thought I would give an update from my post 2 years ago. I have been renting to the same tenants and have cleared about $36K.
UPDATE - Judge signed a Order to Vacate the Dismissal and for Judgment of Foreclosure and Sale a few days ago. he had dismissed the lender's case back in May for not filing something on time, but now gave them the green light. Not sure how much longer I will have the house....does anyone know a time frame that is typical in upstate NY before the sale? My tenants have been on a month to month lease the last two years. My thought is either to get them out in a month or two and then occupy the property and attempt a C4K's with Ocwen or let them stay there and when eventually new owner takes over...they have to give them 90 days notice. They have been aware of the looming foreclosure. Any thoughts?
 

cmefly

LoanSafe Member
Jan 9, 2010
78
1
8
UPDATE - Judge signed a Order to Vacate the Dismissal and for Judgment of Foreclosure and Sale a few days ago. he had dismissed the lender's case back in May for not filing something on time, but now gave them the green light. Not sure how much longer I will have the house....does anyone know a time frame that is typical in upstate NY before the sale? My tenants have been on a month to month lease the last two years. My thought is either to get them out in a month or two and then occupy the property and attempt a C4K's with Ocwen or let them stay there and when eventually new owner takes over...they have to give them 90 days notice. They have been aware of the looming foreclosure. Any thoughts?
Update -----------------Auction Sale Scheduled for April 11, 2017-----------------Any advice as to how I should proceed with my tenants? They are on month to month. I can get them out before the sale or let them stay and have the bank give them 90 days or possibly more.
 

eightracker

LoanSafe Member
Jun 22, 2010
142
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Well I'm guessing that by the date you do lose the house, you will be ahead by about 61 grand...Not bad, eh eh!

You say they are aware of the foreclosure, so why cause them to have to move now? Let them stay and you collect rent at least for the month of March. AFA any security deposit, you could either return it to them, or tell them that your arrangement with the lender requires a 3 month period before they can be evicted, so you would be willing to keep the deposit in exchange for the 3 more months that they'll be able to stay there.

Another tact might be to pull a BK to stall things...
 

cmefly

LoanSafe Member
Jan 9, 2010
78
1
8
Well I'm guessing that by the date you do lose the house, you will be ahead by about 61 grand...Not bad, eh eh!

You say they are aware of the foreclosure, so why cause them to have to move now? Let them stay and you collect rent at least for the month of March. AFA any security deposit, you could either return it to them, or tell them that your arrangement with the lender requires a 3 month period before they can be evicted, so you would be willing to keep the deposit in exchange for the 3 more months that they'll be able to stay there.

Another tact might be to pull a BK to stall things...
Thanks for the reply "eightracker" I was beginning to think I entered a Walking Dead town since it's been awhile since anyone responded. Oh well I had a great run!!! Actually I met with my tenants today. They found another home and they will be moving in before the sale. I didn't collect a security deposit. They have been excellent tenants. I claimed the house in a Chapter 7 back in 2013 so I'm all set there. What I might do is go back into the home and negotiate a move out with the attorney working for the lender. It's going to be a pickle for the lender as they are claiming a lien of $200K with a value of $150K. In addition there is a mortgage in front of there's to the tune of about $40K. That was also discharged in my bankruptcy. BUT the owner of that $40K lien is in prison for the next 3 years. So my house could be sitting for quite awhile empty.
 

eightracker

LoanSafe Member
Jun 22, 2010
142
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Cmefly, why would you bother to "negotiate a move out with the attorney working for the lender"? What would be in that for you?
AFA loan to value, the liens appear to total $240K on a property worth $150K. The foreclosing second would need to pay off the first lien holder in any sale, or at least make the payments due on it. After any rehab work necessary, taxes, insurance, and marketing/closing costs, they would be negative about 100 grand.

Of course you could always be a nice guy and turn the 61 grand over to them, to lessen their losses...Bwahahaha!
 

cmefly

LoanSafe Member
Jan 9, 2010
78
1
8
Cmefly, why would you bother to "negotiate a move out with the attorney working for the lender"? What would be in that for you?
AFA loan to value, the liens appear to total $240K on a property worth $150K. The foreclosing second would need to pay off the first lien holder in any sale, or at least make the payments due on it. After any rehab work necessary, taxes, insurance, and marketing/closing costs, they would be negative about 100 grand.

Of course you could always be a nice guy and turn the 61 grand over to them, to lessen their losses...Bwahahaha!
Cash 4 Keys Brother! Lenders and attorneys for the lenders want a smooth transaction if they take over the house. They want you out...without the copper pipes, A/C, etc. In my area they would rather offer you some money to move out within 30 days and doing a walk through with their rep rather than go through the eviction process.
 

eightracker

LoanSafe Member
Jun 22, 2010
142
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So your tenants move out, you "move in", and get cash for keys...Not bad! But what will you do to stage it with furniture and other things to make it look like you are actually living there?
 

cmefly

LoanSafe Member
Jan 9, 2010
78
1
8
So your tenants move out, you "move in", and get cash for keys...Not bad! But what will you do to stage it with furniture and other things to make it look like you are actually living there?
Well, I handed the keys over to my property last week. I had my month-to-month tenants move out the first week of April after finding another home to rent. The week after the the lender purchased the property at auction for $204,000 (Value $150,000). I then contacted my lender Ocwen who in turn put me in touch with their vendor Altisource.

Altisouce offered me $4,500 to move out by April 30th and leave home in broom clean condition and debris free. I spent some time cleaning up the yard, filling some nail holes with spackle, etc. I contacted Altisource and arranged an April 28th C4K handoff. Represenative that came by was great. He said my house was the best house he had ever been in and was in perfect condition. I was handed three checks totaling $4,700, the extra due to moving out 2 more days earlier.

Thanks to everyone on the forum for their insight especially Tom Eason. His advice and posts showed me how to rent a house in foreclosure and after bankruptcy. I couldn't have asked for a better outcome. My credit scores are now in the 700's and was able to purchase another home a couple years ago.
 
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