Foreclosure RentingOne of the most effective methods of avoiding foreclosure, yet one that is rarely discussed, is renting out your home while moving to a cheaper rental house or apartment. Often referred to as "Foreclosure Renting", this foreclosure solution lets you keep your home in good standing by covering the ownership costs through rental income and reducing expenses by living in a less costly residence. Subsequently, when the economy and your income improves, you simply move back home when the tenant's lease expires or sooner depending on the terms of the rental agreement. A similar variation of foreclosure renting involves leasing a portion of your home-from a single room to an entire floor depending on the layout of your property and patience with strangers- combining the best of both worlds by increasing your income and covering ownership costs without actually leaving your house. While few people prefer roommates,it's a much better than losing your home in a foreclosure sale. Whatever lease arrangement you decide on, check our Sample Foreclosure Documents and Materials for everything you need including Sample Rental Agreements you can use to lease your home and to rent a new home or apartment. Advantages of Foreclosure RentingThe primary advantage of foreclosure renting to stop the foreclosure process is that you continue to own your home throughout the lease term and keep your property at the end of the day. As long as the tenant makes timely payments which you use to cover ownership costs, you'll not only move back into your home but can further use your status as landlord to make tax deductible improvements to your home that would otherwise not be deductible if you were not renting the property.Unfortunately, IRS regulations can be very confusing so its essential to consult with a financial or legal professional to determine the best course of action for you. As always, don't hire any professional without getting a referral from a source you trust. FindingTenants and a Cheaper Place to LiveNo matter which foreclosure option you select, there's more work to be done and finding suitable tenants to respect your home or roommates that aren't serial killers can be important!The best way to find the right people for your situation is using a realtor or reputable service that provides listings for housemates and tenants. Make sure you do some type of background check if possible and/or talk to a prior landlord or roommate to get an idea of who you're dealing with and how reputable (or disreputable!) they may be. There are several online services that provide comprehensive personal background information on prospective tenants which may be money well spent for the right service. Finding a cheaper place to live can also be challenging because you need to reduce costs without sacrificing personal safety and convenience. Moving to a dangerous neighborhood or one with traffic, noise or other annoying conditions is a good reason to hire a realtor who is familiar with the area and knows what you're looking for. By using a good realtor from a trusted source you'll save a lot of leg work and avoid headaches resulting from a bad choice.
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