Dealing with a Short Sales doesn`t mean you can place the home “For Rent”.

Impossible to imagine,yet there are Realtors out there who believe they can place a home on the MLS for rent,while their client is about to be placed in Foreclosure. Such is the case that happened to us yesterday.

One of our agents showed a rental property last night, the potential tenant really liked it. We started writing a “Contract to enter into a Lease”,the rental is for 1 year. Before we send out any offer, we like to contact the other agent to find out if the property is available.

Thank God we did!

The Conversation is as follows:

The Conversation is as follows:

Me: We`re calling about your rental in Weston,Florida. Is it still available?

Realtor: Yes! My client needs the money, we`re also selling the property as a Short Sale.

Me:Short Sale? How long as the landlord not paid the mortgage?

Realtor: Oh, they haven`t paid in 4 months. That`s why he wants to rent the home.

Me: Rent the home? Does he plan on paying the mortgage anytime soon?

Realtor: No, why do you ask?

Me: Why did you place this home as a rental, you can`t legally do this,are you aware of what you`re doing?

Realtor: My client wants me to rent the home, we`re not doing anything wrong.

Me: Not doing anything wrong,except not disclosing on the MLS, there is a Short Sale.The tenant will be screwed.

It never ceases to amazes me how many Agents “Make up the rules” as they go by without checking to see the ramifications, yet in our area it`s a common occurrence.

If a landlord has failed to pay the mortgage it`s a sure sign that Foreclosure is around the corner,which means the home will be sold by the lender.

The lender will not allow the tenant to remain,the security deposit will vanish with the landlord who will lose their home, leaving the tenant “Holding the Bag”.

You can`t rent a home if you`re client is negligent paying a mortgage,this shouldn`t be considered a reward!