Many pre-foreclosure properties can be found in the classified ad section of newspapers, or by browsing online rental advertisements. Renting homes that are in pre-foreclosure, and not homes already foreclosed on by banks, is a better deal for renters, according to Rentalads.com.
Homes in pre-foreclosure are sometimes listed in the legal notice section of the newspaper. In addition to newspaper classifieds, pre-foreclosed homes can be found by checking notices of default at the county courthouse, if the court keeps such records, according to CreOnline. It is best to learn as much as possible about a property before approaching the homeowner with a rental proposal. A tactful letter explaining rental requirements, and willingness to enter a flexible rental arrangement may produce the best results, suggests Rentalads.com.
The main problem with renting foreclosed homes is that these properties are likely to be listed with real estate agents, who sell these properties on behalf of banks, and any rental agreement excludes the original homeowner, notes Rentalads.com. Renting a home controlled by banks often means tenants are left without someone to provide maintenance, and tenants can be served a notice of eviction regardless of the lease, according to Nolo. Therefore, it's safer to approach homeowners who are still in possession of ownership, but are facing the threat of foreclosure.