From the BiggerPockets Blog

 BiggerPockets Blog »

Jump to Forum View All

Click a category below to view different forum categories.


General Info

BiggerPockets Q&A, Site Questions, & Announcements

1518 topics, 14426 posts — Last Post 04/20/14, 09:14PM

BiggerPockets Exclusive PRO Area

118 topics, 842 posts — Last Post 04/20/14, 04:40PM

New Member Introductions

10907 topics, 85833 posts — Last Post 04/20/14, 09:40PM

Real Estate Success Stories

396 topics, 6166 posts — Last Post 04/20/14, 09:40PM

General Real Estate

General Real Estate

Buying & Selling Real Estate

5954 topics, 46919 posts — Last Post 04/20/14, 09:44PM


645 topics, 5825 posts — Last Post 04/20/14, 07:48PM

Get Foreclosure Help - Help Stop Foreclosure Forum

316 topics, 2557 posts — Last Post 04/16/14, 03:58AM

Home Owner Association (HOA) Issues & Problems Forum

237 topics, 1609 posts — Last Post 04/17/14, 08:53AM

Do it Yourself

657 topics, 6296 posts — Last Post 04/20/14, 07:04PM

Reviews & Feedback

Real Estate Deal Analysis and Advice

3687 topics, 29552 posts — Last Post 04/20/14, 09:50PM

Real Estate Guru, Book & Course Reviews and Discussions

1135 topics, 11565 posts — Last Post 04/20/14, 08:31PM

Ask About A Real Estate Company

741 topics, 7327 posts — Last Post 04/20/14, 05:47PM

Real Estate Investing

Real Estate Strategies


5610 topics, 43775 posts — Last Post 04/20/14, 09:43PM

Rehabbing and House Flipping

3336 topics, 31022 posts — Last Post 04/20/14, 08:07PM

Real Estate Development & New Home Construction

553 topics, 4686 posts — Last Post 04/20/14, 12:11PM

Innovative Strategies

704 topics, 6030 posts — Last Post 04/20/14, 10:54AM

Tax Liens, Notes, Paper, & Cash Flows Discussion

866 topics, 6678 posts — Last Post 04/19/14, 06:06AM

Rent to Own a.k.a. Lease Purchase, Lease Options

695 topics, 4909 posts — Last Post 04/20/14, 05:32PM

1031 Exchanges

143 topics, 1054 posts — Last Post 04/18/14, 08:41AM

Foreclosure Investing

General Foreclosure & Pre-Foreclosure Forums

1688 topics, 11298 posts — Last Post 04/20/14, 01:58PM

HUD, VA, and Tax Sales

415 topics, 3097 posts — Last Post 04/19/14, 10:19PM


1214 topics, 10578 posts — Last Post 04/20/14, 12:34AM

Short Sales

1535 topics, 13121 posts — Last Post 04/20/14, 02:17PM

Landlord & Tenant Forums

Landlord & Rental Property Questions

7217 topics, 70840 posts — Last Post 04/20/14, 09:24PM

Mobile Homes & Mobile Home Park Investing

638 topics, 5142 posts — Last Post 04/20/14, 08:42PM

Investor Basics

Starting Out

7712 topics, 60529 posts — Last Post 04/20/14, 07:25PM

Investor Psychology

431 topics, 6107 posts — Last Post 04/20/14, 06:04AM

General Real Estate Investing

4720 topics, 37231 posts — Last Post 04/20/14, 09:50PM

Real Estate Investor Marketing

1732 topics, 14098 posts — Last Post 04/20/14, 05:20PM

Commercial Real Estate

Commercial Real Estate Investing Forum

1410 topics, 8994 posts — Last Post 04/19/14, 04:34PM

Multi-Family and Apartment Investing

1111 topics, 9255 posts — Last Post 04/20/14, 09:00PM

The Business of Real Estate

Real Estate Technology and the Internet

Real Estate Technology, Social Media & Blogging

641 topics, 4897 posts — Last Post 04/20/14, 08:43AM

Business Basics

Goals, Business Plans & Entities

831 topics, 7562 posts — Last Post 04/18/14, 04:25PM

Real Estate Finance & Legal

Financial, Tax, and Legal

Tax, Legal Issues, Contracts, Self-Directed IRA

2789 topics, 20033 posts — Last Post 04/20/14, 03:21PM

Property Insurance

309 topics, 2045 posts — Last Post 04/17/14, 07:41PM

Personal Finance Discussion

328 topics, 2732 posts — Last Post 04/19/14, 06:57PM

Loans, Mortgages, Credit Lines

Private & Conventional Lending Discussion

2839 topics, 19727 posts — Last Post 04/20/14, 09:48PM

Creative Real Estate Financing

1210 topics, 8772 posts — Last Post 04/20/14, 06:59AM

Crowdfunding Real Estate

35 topics, 463 posts — Last Post 04/19/14, 06:24PM

Real Estate Professionals

Real Estate Professionals

Real Estate Agents

1211 topics, 7999 posts — Last Post 04/20/14, 03:12PM

Bankers, Lenders, and Mortgage Brokers

441 topics, 1922 posts — Last Post 04/20/14, 07:09AM


270 topics, 1685 posts — Last Post 04/20/14, 02:48PM

Local Real Estate

Local Real Estate

Local Real Estate Networking & Recommendations

1994 topics, 11628 posts — Last Post 04/20/14, 07:37PM

Americans & International Real Estate

161 topics, 566 posts — Last Post 04/14/14, 11:19AM

Foreigners Buying in the USA

62 topics, 409 posts — Last Post 04/10/14, 06:27AM

Canadian Real Estate

65 topics, 430 posts — Last Post 04/20/14, 04:56PM


Real Estate Marketplace

Real Estate Marketplace

15027 topics, 53971 posts — Last Post 04/20/14, 09:38PM

Real Estate Events and Happenings

165 topics, 2539 posts — Last Post 04/20/14, 09:41PM


Off Topic


2905 topics, 32411 posts — Last Post 04/19/14, 08:03AM

Housing News & Real Estate Market

914 topics, 8351 posts — Last Post 04/17/14, 08:41AM

BiggerPockets Real Estate Investing Summit

97 topics, 1751 posts — Last Post 04/10/14, 02:27PM

BiggerPockets Resources

Forums » Short Sales » Renters want to buy house on short sale

Renters want to buy house on short sale

5 posts by 4 users


· Newport, Rhode Island

I just sent paperwork into the bank this week to get approved for a short sale on my house in Montana. I have had renters in the house for 2 years and they are very interested in buying the house. When should I notify the bank that I have renters that want to purchase the house- immediately or wait until the bank contacts me about the house? I'm just not clear what the best decision is here and I want it to go as smoothly as possible. There is no arm's length conflict as far as I am aware.

Thanks so much for any help!

Foreclosure Specialist · Miami, Florida

If you have been notified of foreclosure action by your lender, then you should submit the offer immediately. This is a very slow process and so acting fast helps.

If you have not received any notices from the lender (i.e. have not missed any payments) and the offer is equal to or greater than the loan balance, you do not need to contact your lender. You can sell the property directly. Use a title agency and they will make sure your lender gets paid off at the closing.

Simon Campbell,

· Newport, Rhode Island

THanks for your reply, Simon. We are currently underwater on the mortgage by about 30K and need to sell the property. We do have renters in the home, but the rent does not come close to covering the mortgage and we currently are losing about $850/month. We are not behind on the payments. Our renters are interested in purchasing the property and I have filed paperwork with my mortgage company to get approved for a short sale. THe renters have not made an offer. My question is when should I notify my mortgage company that I have an interested party to buy the house? Should they know right away, later in the process, never? I don't know when to let them know that the tenants want to purchase the house. Thanks!

SFR Investor · Phoenix, Arizona

Most lenders want the property listed on MLS with a realtor - when you get an offer, you start the process.

Unless you're trying for a "Pre-approved" short-sale, where the bank sets the price..

What is your lender telling you to do?

Real Estate Investor · Cincinnati, Ohio

Assuming your loan is HAFA-eligible, or otherwise eligible for getting pre-approval on a sales price, the most important thing will be to try to get the BPO to come in at a low enough number to entice/enable your renters to buy it. If it's a drive-by BPO, this may be impossible. It it's an interior BPO, then you will get notification and have some opportunity to intercede with the BPO agent with your list of low comps or other supporting information of the "negatives" with the house and neighborhood, to nicely encourage them to come in with a lower number.

Most times, the listing agent would play this role of trying to intercede with the BPO agent, and since you live out of the area it may be worth it to use a savvy local short sale agent. Plus, if the BPO comes in too high, the SS agent knows how to most effectively appeal the amount. You can call a large realty office and ask for their most experienced short sale agent. Your renter would put in an immediate bid to "pend" the property when it's listed. Your renter will need to be pre-approved by a lender as well, prior to them even submitting the offer.

E-Mail: [email protected]
Telephone: 502-321-6328

Sign up