Should I Rent Out My Short Sale?

 Call Scott Gregory NOW at anytime at (850) 501-2574 / www.ScottGregoryHelps.com / http://www.greatpensacola.com/

Should I rent my Home While Doing a Short Sale?

Is it always better to have someone living at the home?

You would think so. Common real estate advice says it's always better to have a house occupied. But through our experience of short sales here in the Pensacola area, we can tell you it is actually better for it to be vacant.

What are some of the problems you can have when renting out your property or former home?

There are a number of problems that come up when we are dealing with rental property while trying to do a short sale. The first issue is "pride of ownership." Since the tenant does not own the property, he does not have the same connection or care that the homeowner would. There's a saying in real estate that goes once you rent your home out that "you never get the same house back." Also, homes do not show as well with tenants in them, and for some reason, Realtors shy away from showing homes with tenants inside in Pensacola, because the common fear is that dealing with the tenants will be a problem. The last issue is, in most situations, why would the tenant help? All that happens at the end of the day is that he is going to have to move out and find a new home. You're better off not having tenants.

Can you collect rent when you have already stopped paying the mortgage?

If you are collecting rent when you have stopped paying your mortgage… IT'S MORTGAGE FRAUD ... plain and simple. Every loan has the language in it that if you are not paying the mortgage and are collecting rent, that you are committing mortgage fraud. And, yes, some would say, "but thousands of people are doing it." Well ... all of them as well are committing mortgage fraud, and that does not justify the action. It is not legal and not recommended.

But what about for the people that have lost so much money and just want to collect a little rent?

We can understand the frustration of being upside down on a house. But at the end of the day, it is still mortgage fraud. It is better to be legally safe and not do this.

What should people be doing as an alternative to all these ideas?

If you know you want your home sold, we don't want you investing big money to make changes, because at the end of the day the property is being sold "as-is." What you can and should do is just clean it up as best as you can and just help the real estate agent as much as you can to get your place sold. The important thing to do is to find an agent that is experienced in short sales with a good track record. Your home will be sold quicker if it is clean and accessible so this problem can be put behind you.

Call Scott Gregory of The Gregory Team (850) 501- 2574

 The Gregory Team

The Gregory Team is a “mega agent” team at Keller Williams Realty Gulf Coast (Keller Williams Realty Pensacola) that specializes in residential sales and investment properties, and has extensive experience in getting homes sold in a changing market (from regular sales to distressed sales). When you buy or sell with The Gregory Team, you get a full team at your service. They can help you buy or sell property anywhere in America. Local market areas include Pensacola, Navarre, Navarre Beach, Pensacola Beach, Gulf Breeze, Milton, Pace, Fort Walton Beach, Mary Esther, Perdido Key, Cantonment and Destin. Sellers, buyers and referrals are always welcome. Call us at 850-501-2574 or email to gregoryteampensacola@gmail.com.

Scott Gregory