A relative of mine is renting a house from someone that is about to face foreclosure. What can I do?
What rights does my relative have as a renter in the sate of Florida in Palm Beach County?
And, I was thinking about having my relative or someone else do a lease option to save the credit of the homeowner and also getting a paying renter back in the picture of living in the home.
Any help would be greatly appreciated…
Mike
That is a dangerous thing to try since the renter has no control over whether or not the homeowner will even really pay the underlying mortgage. Plus, you don’t know how far deliquent the homeowner is - they could owe thousands before the default is cured and the loan is back in good standing.
If the renter really desires to stay in that particular house, the best thing to try is for the renter themselves to offer to purchase the house from the landlord using a short sale. The other option is for the renter to “assume” the mortgage - but again, depending on how far in default the landlord is, it may not make financial sense.
I agree, getting into a lease option with a homeowner in default is very risky. I would “squat” until the bank rep comes by with a “cash for keys” offer. Then find a new place to rent. The home is going to foreclosure and unless you can get a wholesale deal after bringing the loans current (or negotiate a wholesale short sale) you are wasting your time.