Bank is Landlord

[Roger Heiser]

I am looking at a buy and hold house that already has a tenant. When my wife and I went to see it, the tenant was there . She told us that she had been there 3 years and that the bank owned the property. I did some research and sure enough the bank had foreclosed on the house several years ago but kept it until now as a rental.

Is it common that banks will hold forecloses as rentals?

[Rob K.]

I know a property manager who has contracts with banks to manager their foreclosures/rentals. He manages hundreds of them. He told me that the banks want to hold these houses and collect rent on them and sell them when values come up more.