Renting a home- worried about foreclosures

[Trixie15]

My extended family is renting a 7 br home in Formosa Gardens next May. We're really excited about this vacation.

My brother recently brought up a point that with the economy the way it is, and so much going on with foreclosures, he is worried that we'll make this reservation and then something bad will happen and the home will no longer be available when we need it.

Does anyone else worry about this or is he being paranoid?

 

[spiceycat]

never heard of foreclosures - although sure that Orlando has their share.

have heard of the owner changing.

but check your contract - if the new owner does not accept your reservation aren't you entitle to a full refund.

 

[kksmom92]

I worry about that too along with other things... but you can just call me a worry wart.

 

[psharrock]

Try to remain positive. Yes there are a high number of forclosures in the Orlando area, however, as a percentage of the total villas in the area its really really small.

Formosa Gardens Estates has had about 4 forclosures in the past 18 months, but they have mostly been the smaller homes within the community.

Why don't you talk to the owner in an attempt to reduce your fears.

Enjoy your vacation in May

Paul

 

[snickerboo]

I'd look for a home where the availability calendar looks pretty full for most months. A popular villa is getting enough guests to pay the mortgage so it should be alright. I'd also find one where you can pay on your CC and where you don't have to pay too much of a deposit until your close to your dates. Our condo let us pay on CC and only wanted a small deposit to hold it, with the balance due 60 days before. That way, if the worst were to happen, your CC would probably be able to get your deposit back and you'd be able to rent somewhere else before your vacation. With so many vacation homes now, I wouldn't worry about being able to get another one.

 

[Freaky]

Good advice Snikerboo I totally agree - go for a home that has had a good amount of bookings and pay by credit card if possible (should be easy to find that).

 

[KayR]

Most of the foreclosures that I have seen in the area are where people have bought property to flip and make a profit -but they got caught in the downturn of the market. Its obviously not 100% are that, but it is the majority of them so far.

One thing to look out for if you are worried about foreclosures, is rental rates that are too cheap. If the owner isn't charging enough, they are not making enough to cover mortages, taxes, insurance and maintenance etc. From what I know, I would expect a 4 bed pool home to charge at least $800 per week to be able to keep the home to a good standard. That's just over $110 per night.

I have to disagree on the calendar. A fully booked calendar is not necessarily a good indicator of the financial health of the rental home. Some owners do not keep their calendars up to date - so that wouldn't help you assess the home. Additionally it is easy to fill your calendar if you charge a low rent. Another factor with calendars, is that booking is cyclical - a calendar may not show that the property books well.

-Kay

 

[JANNYANS]

I agree with KayR-watch out for homes that seem very cheap.Rental homes are not cheap to run and if an owner is not covering the costs then there could be trouble ahead.You could rent from an owner recommended to you or ask in here .

 

[bzlitme]

Also look for a home associated with a management company. If something goes wrong, they will place you in a similar home.

 

[kilee]

Not all homes w/ managements companies will place you in other homes w/o an entirely new rental fee. In the past all the homes we've rented had management companies. However, they were still direct rentals. Meaning we paid the owners direct. The management company was there to "check us in", give us they key's, and to take care of any problems that might arise w/ the property. I could not see a place that we did not pay the fee to making us another reservation w/o an entirely new rental fee.

That being said, I think that w/ the severe rise of foreclosures, it is something to keep as a thought. However, I wouldn't let it ruin your trip making plans.

 

[kksmom92]

You could always check on here and see if the home is listed. I just found it today.

http://www.realtytrac.com/home.asp

To bad there is a ton of listings and you can't search by typing in the address or development.

Edited to add that you can look at a map so that can narrow it down!