leaving old owner on as tenant after foreclosure

[Leonard L.]

I have just started investing in foreclosures on courthouse steps. I have always heard it is best to kick out the old owner and start fresh. However, if you could The Property Report last week in WSJ they profiled hedge fund GI Partners which has committed $250m to buying at foreclosure auctions and renting to tenants. What caught my eye is that their business model calls for first trying to make deal with old owner to stay in property.

Anyone have experience to share?

[Kyle Meyers]

If they couldn't pay the mortgage, how will they pay the rent? Isn't your rent higher than the mortgage payment was?