Payroll Deduction
Had a conversation today with a seller in pre-foreclosure status. He asked if I would consider renting to him after he sold the property to me. He then asked if I could do a auto payroll deduction from his employer for the rent. I was speechless...and doubtful it is possible.
I believe this varies by employer, yet curious if anyone has pursued this idea?
Although I really don;t think anyone could ever convince me to let them stay after I bought, paying me straight from their employer (or at least a few years) would be worth considering.
Banks will do ACH which pulls money from a particular account, but to get the payroll "deduction" i think you'll actually have to do that through his employer. Have him get the name of the HR person or payroll person at his CO and a 2 minute phone call should do all of us some good.
Hey,
Don't even think about renting to a person that you are buying from, if they are in pre-foreclosure. Period.
The idea of automatic payroll deduction is cute, but how much good is it if he quits or gets fired.
I have rented and lease opt back to pre foreclosed homeowners before and has worked out great.
Many can afford a larger payment to produce cash flow; they are just unable to bring the mortgage current.
Getting someone out of pre-foreclosure and renting back to them in the same house is a bad idea. It adds legal exposure that you don't need. Moving them into another rental you have is better, but the cleanest way to handle this is to put them in touch with another investor. Also, ACH is a great way to collect rents.