I have three prospective short sale and/or loan modification prospects in the pipeline. Two houses are vacant. One is rented.
The objective is to take title and begin loan mod/short sale process. If we’re not successful, we keep the rent. If we’re successful, we keep the rent, and make a small fee at resale.
We understand about the “rent law” and will pay the owner a flat fee as “total rent,” and the tenant’s know that the term of the rental agreement could be only a few months or could be a couple of years. So there’s no surprises about the default. The rents are set below market, because of the surrounding issues.
Anyone have advice/experience they’re willing to share about taking title Subject To on three defaulted, upside down, short sale prospects and renting them out?