Tenants are you renting a pre-foreclosure?

Property Management and Trying to Sell a Rented Home

 

Many of the houses we have listed for sale are in a pre-foreclosure situation right now. That’s ok, we do have experience with short sales.

 

But we also have many pre-foreclosure homes with tenants in place. No, we didn’t place the tenants, we don’t think that is right, they were already there & typically prior to knowing about any type of pre-foreclosure issue with the owner.

 

Ok, fine. So how can we sell these homes with a tenant in place?

 

In the best case scenario, the tenants would work WITH us. If we sell the house to someone else BEFORE it forecloses their lease will remain in effect. Great. They still have a place to live.

 

Here’s my ideas of a tenant working with us:

 

• Provide us with a working key (yes, getting a key has been a real problem)

 

• Allow us to hang a lockbox (we can hide it if that makes them more comfortable)

 

• Let agents show it during any normal hours once given the proper notice

 

• Leave for showings (most are done when they are at work anyway)

 

• Keep the house somewhat presentable (clean once in a while please)

 

Not too much to ask for, is it?

 

Well, here’s what is reality.

 

The companies handling the property management are:

 

• Not even giving us a key, they wanted every appointment scheduled through them & either the tenant would let the buyer/buyer’s agent in or we’d have to go pick up a key & meet them there.

 

• Give us a key but not allowing us to hang a lockbox. That means that the agent has to come to our office, pick up a key, do their showings then come back & drop the key off. Are you kidding me? Why would anyone do this in THIS market?

 

• Give us a key but not allowing anyone but ME, the listing agent, to show the house (let’s see, right now I have 42 listings, how could I possibly be available for EVERY SINGLE SHOWING?).

 

So, here’s my question to Tenants/Property Managers & even SELLERS.

 

How are we supposed to sell your home & save it from homeless/foreclosure if we can’t get anyone in to see your house?

 

Do you see how that can be a problem? No price will fix this issue. Or at least no price that the bank will agree to will.

 

So, either the seller will get frustrated & sign a deed in lieu (if the bank allows, etc) and the tenant will be HOMELESS within a few days. Yes, that is TRUE, once the banks own the house they don’t play games, they kick you out – just like that. I got a call from an angry tenant like that a couple of months ago, no warning – just “you have to get out, here’s $500 BYE BYE”.

 

Or we keep trying to sell the house & eventually we get an offer but it is very low because it has been on the market for a few months & everyone thinks something must be wrong with the house. #$&)!, we’re too late, the bank has foreclosed. Same scenario folks, tenant is HOMELESS, Seller has a FORECLOSURE, the house sits vacant and deteriorating for months, and no one is happy.

 

Wouldn’t it have been better to work with us, allow us to show the house properly, receive a proper offer, negotiate the short sale & have a successful closing? New buyer=HAPPY, tenant=HAPPY, seller=HAPPY.

 

Doesn’t everyone just love a happy ending?