A bank-owned property is the result of an individual or business defaulting on the mortgage payments and the bank takes possession of the property. Renting bank-owned property is generally done with commercial property. However, in a slow market, the bank may consider renting residential property as well. The downfall with renting bank-owned property is that you often must relocate after the property sells. Also, banks usually do not provide any updates or repairs to the property, so you'll have to handle maintenance issues on your own.
Write down the physical address of the property you want to rent. Identify the county where the house is located and visit that county's courthouse.
Provide the clerk in the department that handles land deeds with the address of the property. Request a copy of the current deed. This provides you with pertinent information regarding the property, such as the name of the bank.
Contact the bank listed as the lien holder on the deed. Request to speak to someone the foreclosure department. Explain to the representative that you want to rent a property that the bank currently owns.
Write down the information she provides, which includes the attorney's name or the listing real estate agent’s contact information. The bank hires professionals who deal with foreclosures to handle the sale or renting of the property.
Contact the professional handling the property and ask if he would consider renting the property to you. Request a list of the terms required to rent the property. Generally, an attorney is the one who handles the rental negotiations. He provides you with the terms and a rental or lease agreement. Lease terms are often shorter than the typical year, as the bank's primary goal is to sell the property.
Provide the required information for the rental agreement, such as your name and address. Expect to pay a security deposit.
Sign the rental agreement and pay the required deposit. Ask for a copy of all agreements and keep them in a safe place.
Expect a clause to be added to the agreement stating that you must vacate the property if it sells.
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