looking to rent from private part. pros & cons

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AlixKhan11_IHB

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I am currently renting with IAC and we are thinking of moving. I am interested in a private party townhome or condo but am a bit hesitant to make the switch to a private land lord vs IAC due to the number of people that are upside down with their mortgages. Don't want to have to move again when the bank comes knocking.



What is your take on renting with IAC vs renting privately? How can I determine that the guy I am renting from is not upside on his mortgage? If you are a private owner then here is your opportunity to rent to responsible renter with with excellent credit :-)
 
i've been renting from private landlords for years. i personally find individuals much more responsive, and appreciative of a good renter, than big REITs.



you can ask them what their cashflow is and when they purchased. you can look them up on the OC tax site to make sure they've paid, and the OC clerk to see if they have leins.



but usually talking to them about it should reveal all. if they are evasive, pass on it.
 
[quote author="AlixKhan11" date=1210921491]I am currently renting with IAC and we are thinking of moving. I am interested in a private party townhome or condo but am a bit hesitant to make the switch to a private land lord vs IAC due to the number of people that are upside down with their mortgages. Don't want to have to move again when the bank comes knocking.



What is your take on renting with IAC vs renting privately? How can I determine that the guy I am renting from is not upside on his mortgage? If you are a private owner then here is your opportunity to rent to responsible renter with with excellent credit :-)</blockquote>


Upside - you get a nice house/condo for a good price



Downside - Private rentals usually ask for much larger deposits, and there is a very real chance that the property could get foreclosed on when you're living in it, kicking you out and losing your deposit...



I always do a thorough check on the properties title, all the outstanding loans, loans vs value, and I then run a comprehensive check on the owner names to find out if they own anything else, anywhere else, and the situation on those properties.
 
[quote author="Masterofdamoney" date=1210988061]



Downside - Private rentals usually ask for much larger deposits, and there is a very real chance that the property could get foreclosed on when you're living in it, kicking you out and losing your deposit...



I always do a thorough check on the properties title, all the outstanding loans, loans vs value, and I then run a comprehensive check on the owner names to find out if they own anything else, anywhere else, and the situation on those properties.</blockquote>


I've never had to do any of the aforementioned stuff, but it sounds very prudent and fiscally safe to do so. My question is how would someone go about checking on a properties title, checks on the owner, etc. that you mention?



I have no financial experience in any of this, but I could definitely see myself doing it, if I knew how to do it.





Dejnov.
 
[quote author="IrvineRealtor" date=1210926874]If you want title info to double-check, just say the word once you've ID'd the property.</blockquote>


Thanks :). When I posted, I wasn't sure if I was being financially prudent or being paranoid.



Now time to talk to the the Mrs and see if I can convince her of the merits
 
the title check is more complicated but checking if they've paid their property taxes is simple.



just type in the address here.

<a href="http://tax.ocgov.com/tcweb/search_page.asp">http://tax.ocgov.com/tcweb/search_page.asp</a>
 
You may also want to check in with a Realtor. Seriously, they probably know a lot of clients who are not in distress, who are trying sell, but the market is not moving much inventory. Their clients may lease it out instead. The realtors I know typically didn't like to do rentals and leases, since the effort is high and payback is low, but why not give one a call?
 
I have access to the title records, so it's very simple to check the property and owner situation. Once you've done that, it is simple to do a search on the owner and find out everything else they own. Then you just check out all those homes as well. Figure out what their situation is. If it's really stable, go for it. If not, don't take the risk.
 
I think someone posted above that you will lose your security deposit if your landlord is foreclosed on. Im about to move to a private rental and in doing research i found the following regarding security deposits on foreclosed homes, turns out you can collect it from the bank that forecloses the house:



<strong>My landlord has suffered foreclosure and I'm going to move. How do I get my

security deposit back from my landlord?</strong>



You don't. The person or company that owns your building must return your

security deposit to you. The law is quite clear on this point. On sale of the

building, whether an ordinary sale or a foreclosure sale, your security deposit

must either be transferred to the new owner or returned to you. And it's the

responsibility of the new owner to collect the security deposit from your

former landlord. If the lender didn't get the security deposit you paid, it's

not your problem. The lender still has to return it to you. If it's not

returned to you within three weeks after you move, you can sue the lender in

Small Claims Court, just as you would any landlord, to recover the money.



Here is the link <a href="http://www.patrick.net/housing/contrib/tenants.html">http://www.patrick.net/housing/contrib/tenants.html</a>
 
[quote author="qwerty" date=1228876111]I think someone posted above that you will lose your security deposit if your landlord is foreclosed on. Im about to move to a private rental and in doing research i found the following regarding security deposits on foreclosed homes, turns out you can collect it from the bank that forecloses the house:



<strong>My landlord has suffered foreclosure and I'm going to move. How do I get my

security deposit back from my landlord?</strong>



You don't. The person or company that owns your building must return your

security deposit to you. The law is quite clear on this point. On sale of the

building, whether an ordinary sale or a foreclosure sale, your security deposit

must either be transferred to the new owner or returned to you. And it's the

responsibility of the new owner to collect the security deposit from your

former landlord. If the lender didn't get the security deposit you paid, it's

not your problem. The lender still has to return it to you. If it's not

returned to you within three weeks after you move, you can sue the lender in

Small Claims Court, just as you would any landlord, to recover the money.



Here is the link <a href="http://www.patrick.net/housing/contrib/tenants.html">http://www.patrick.net/housing/contrib/tenants.html</a></blockquote>


I might be wary of a countersuit for collection of rents during your "free stay."



It might be better to let sleeping dogs lie.
 
IR2, where did qwerty say that they were not paying rent?



or are you suggesting that if your rental gets foreclosed, that you stop paying rent and wait for the sheriff to kick you out?
 
[quote author="freedomCM" date=1228878810]IR2, where did qwerty say that they were not paying rent?



or are you suggesting that if your rental gets foreclosed, that you stop paying rent and wait for the sheriff to kick you out?</blockquote>


That was my first thought. If you want your deposit back, stop paying rent.
 
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