Homeowners rent out rooms to stave off foreclosure

[Sara Mehrpouyan CDPE]

http://www.mercurynews.com/business/ci_14360027?nclick_check=1

Article courtesy of "CAR's Market Matters"

I have seen and heard of homeowners who are renting rooms for extra income. However, if the banks accept that for income- in the case of a loan modification- it will probably be a temporary fix. Let's say the tenant or tenants leave for some reason, what will the homeowner do if they cannot pay their mortgage again? I visited a homeowner who had 5 tenants living with him (one slept in the living room).

Also, if the home does end up foreclosing then the banks will have a tough time selling these properties because many cities have ordinances for tenants living in foreclosures.

[Brenda Lane-Oliver]

I remember my grandmother talking about the depression and how difficult it was to make ends meet. But, she rented rooms and was able to maintain her dream of home ownership. Things were not bad forever and eventually, her family was back to work and she was able to keep her home. So, I say more power to people who are able to come up with creative ways (not illegal) of keeping their homes instead of going into foreclosure. I want to list and sell homes but not for self-fulfilling reasons.

[Luis Gonzalez]

they are also violating city or state laws , that prohibits renting rooms , unless is a proerty legaly labelled ROOMING HOUSE w/ its proper licenses and inspections. I fam only the owner or 1 tenat is to live there , if there is a multy rents collected should be equal to the legal use of the property. But then again in hard desparate times anything goes, but you are right what happens when they move , that is the case those rents are not made up just to qualify for a MOD. that is another reason why 65% of all Mod after the first 7 months, stop paying the new MOD payment. Just keep in touch w/ that owner eventualy he will realize what you are sugesting is the best choice. Yes there is life after a Short Sale and sooner that they think. good luck