With the number of days on the market continuing to be lengthy in  many areas of the country, some sellers are faced with hard decisions.  We aren’t talking about people facing foreclosure here, instead we’re talking about NON-distress sales where the real estate market is just not moving.  The house is vacant (or may soon be perhaps because of a job transfer, for example).

A friend of mine said earlier today, “You can talk location location location all you want, but in the end PRICE is king.”  It’s absolutely true that everything will sell for the right price, but sometimes waiting five or ten years for that price to go up is not the answer.

One option that sellers can consider is becoming a landlord by leasing the home.  You can opt to allow a lease-purchase, but there are caveats that should be considered before that’s done (more on lease purchase options tomorrow).

Another possibility is to hop on Craigslist and put the property up for rent there.  BE CAREFUL of scammers if you do that, though.  It wouldn’t hurt to “google” your address every day or two to make sure someone else hasn’t also listed the house in order to take advantage of the gullible.

Perhaps the best option is to find a property management company that will take the pressure off of you.  In my own company we have at least two professionals that run this type of business.  They will come to your home to determine a fair rental price.  You’ll sign some paperwork to get the ball rolling and they do the rest.  They will do background checks on potential renters (check credit, call references), they know fair housing laws so shouldn’t be in violation of those, and they’ll collect any deposit money and rents on your behalf.  Yes you will pay a fee for their work (about 10 percent of the rent), but it would sure seem worth it to not have to hassle with doing it yourself.

If I was transferred and couldn’t sell my house, you can bet I’d find a reputable property management company to lease my home out.  Make sure you interview whoever you hire, find out what kind of insurance they have should a renter skip out or if they do damage, and ask for references (and CALL).

It could save your house and your credit score in the long run.

I’ve been terribly worried about one of my friends who just received notice of foreclosure.  What has troubled me is where does someone go after foreclosure?  Forced loss of a house has a terrible impact on your credit score and with most landlords now requiring a credit check, how can you find a place to rent?

Key is to find a landlord that only has one or two rental properties rather than a giant apartment complex.  The local paper, craigslist, and family or friends are the best options for where to search.  In addition, you can offer to put down a higher deposit  or prepay several months rent.  If this isn’t an option, find a rental BEFORE the foreclosure hits your credit score.

The challenge is if you’re being foreclosed upon, your credit score likely already has some negative hits from missed mortgage payments.  If you keep paying your other bills, however, it could be viewed positively by a landlord - especially if your mortgage payment was double (or much higher at least) than what the rent payment would be.

Don’t give up hope. It may take a few years, but things will look better.

An interesting phenomenon has taken place in certain parts of the country.  If you find an area with numerous foreclosures and vacant properties, there are squatters.  It’s not the fact that there are squatters that is so interesting, however.  It’s the fact that the banks are aware of them and in no hurry to evict them.  Ultimately, a home is better cared for if it is occupied: the lawn is mowed, if there are plumbing or electrical issues, they’d be fixed, and occupants should alleviate the threat of vandals and thieves stealing cabinets, etc.

What’s important to note, though, is that squatters have no rights whatsoever when a home is sold.  If a bonafide renter lives in the home when it is foreclosed, the new owner must respect and honor the terms of the lease.  If it’s a squatter, zilch.

Final caveat - if you do rent, be sure you’re entering into a rent or lease agreement with the real owner or spokesperson of the property.  Don’t let a scam thief take advantage of you.

I am getting worn out from paying living expenses - from what almost seems like an avalanche of expenses for my daughter’s baton classes, team, and queen duties to paying for the new dental crown - there’s little extra for Christmas this year!  I am so crossing my fingers that nothing happens to the house.  I want the dishwasher to continue working along with the refrigerator, stove, plumbing, heater… and everything in between!

That’s why I found myself nodding my head along with Steve over at Brip Blap who wrote Score One for Renting,

As we’ve closed on our home purchase and start moving out of our rental I’ve been reminded of one of the benefits of renting. Following Murphy’s Law almost to a T, our kitchen sink backed up severely on Thursday.  Drano and Liquid Plumber helped slightly, allowing a trickle to drain through, but for all intents and purposes the sink was useless.  We decided not to interrupt our landlord’s Thanksgiving, being the selfless tenants we are (ha), and waited until Friday.

His bill was nothing.  I like that price.

Photo by extremezine through Flickr Creative Commons.

Remember how the guy from Nigeria was kicked out yet he has millions of dollars holed away and needs your help - and your money - to rescue the funds?  You’ll be cut in on a sweet percentage of the loot if you’ll just wire $10,000 to a bank account.

The same scammers are now taking advantage of Craigs List and renting homes that are already owned and occupied by someone else.  The FBI issued this Housing Scam Alert,

The criminals search websites that list homes for sale. They take the information in those ads—lock, stock, and barrel—and post it, with their own e-mail address, in an ad on Craigslist (without Craigslist’s consent or knowledge) under the housing rentals category. To sweeten the pot, the houses are almost always listed with below-market rental rates.

An interested party will contact the “homeowner” via e-mail, who usually explains that he or she had to leave the U.S. quickly because of some missionary or contract work in Africa. Victims are usually instructed to send money overseas—enough to cover the first and last month’s rent—via a wire transfer service (because the crooks know it can’t be traced once it gets picked up on the other end).

Be careful what you rent, be careful how you advertise a house for sale!