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Ask Dave

Safe From Foreclosure

Andy doesn't want to step into trouble by moving into a rental house that is facing foreclosure. He needs Dave's advice to avoid it.

QUESTION: Andy just paid off a rental house he owns. They will have to sell their house and move into a rental house in order to save up for their dream home. How can he make sure that the house he’s moving into is safe from any foreclosures?

ANSWER: Find out as much as you can about the property owner and his financial stability; however much they want to disclose to you. Tell him that you are moving your family and you want some assurance for you and your family that they are in good financial condition and not at foreclosure risk. They may be open with you or not. If he says the house is paid for or worth a lot of money, you might be fine. If he says he learned about real estate from a midnight cable TV tape set but says it’s going really well, you’ll probably get foreclosed on.