Can a bank be a landlord

Question

if a bank forecloses on a property are they allowed to keep the property in their portfolio and rent it out (be a landlord)

Answer 1

No, they do not have the proper business licenses to do so.

Answer 2

Banks are in the business of making money. For the residential property they will foreclose on a property because they are not realizing their profits from the investment they made in you, the buyer.  They need to recover the money lost (their damages) so ultimately, they sell them in "AS IS " condition.  The bank will make NO repairs.

  Although they could technically hold on to the property, it is not in their best interest to to so.  It would require them to repair the property, bring the property up  to code, carry property insurance and or flood insurance, perform routine maintenance, hire someone to handle emergency repairs, etc.They will not realize positive cash flow.

Commercial properties are completely different though.  I am not referring to the snall business but large comercial blocks, industrial centers, etc.

Answer 3

i would have thought they are if your mortgage is with a bank. Lets face it if a couple of payments are missed , they are quick enough to issue reposession notice.

Answer 4

They could but normally don't want to.

They need to move the property fast. having a tenant slows down the process.

Answer 5

They could, and sometimes do, if the property foreclosed is an obvious rental, such as a six family apartment building.  Their chances of a good sale are higher if the property is gainfully rented.  However, they won't HOLD it in their portfolio because of this.  It would be sold as soon as possible.

Answer 6

A property managment company would be hired by the bank if it's already rented out. The bank is in the banking business, not property managment.