Readers of The Bank Foreclosure Guide website are welcome to submit questions to be answered on the site. Victoria asks: “is it possible to rent a bank owned foreclosure property?”
Renting foreclosures is not typical. Generally, when a bank takes ownership of a home through foreclosure they are going to sell it to clear it from their books. There are some circumstances, however, when renting foreclosures has been allowed. This was more common during the foreclosure crisis than it is now.
Both Fannie Mae and Freddie Mac have had rental programs in the past to help with the negative impact of foreclosures in some neighborhoods. If an area has a lot of foreclosures, rental programs have been offered to prevent additional foreclosure sales. Renting foreclosures was deemed a better outcome than selling these homes. These programs have been offered to both owners and tenants who are currently occupying foreclosed properties.
Although programs have existed in the past, they are not common. It also is very unlikely than a individual who is not a former owner or current tenant would be able to rent the property. Two of the programs that have been available in the past are the Freddie Mac REO Rent Initiative Program and the Fannie Mae Deed-for-Lease Program. You can learn more about the Fannie Mae program at this link.
There are many sources available for renters to find homes for rent. Renting foreclosures is not a good strategy for a long term rental situation though. If you are looking for a rental property, check with your local real estate agent. You can also find homes for rent on sites such as Craigslist and Zillow. Do your research and rent from a landlord with a solid rental history. You’ll have a better experience.
Interested in submitting a question to be answered on The Bank Foreclosure Guide? You can submit your question here.