Foreclosed homes aren’t just great deals for potential homebuyers — renters, too, can enjoy the savings.

More and more homeowners and investors are realizing they bit off more than they could chew with their current mortgage commitments. It’s among the many reasons foreclosures are up across the board.

When the payments become just too much to handle, these homeowners and investors have few options other than to sell, rent or simply walk away and lose their homes to foreclosure.

The latter option, foreclosure, is really the worst of the bunch.

But sometimes it happens so fast — in as little as one to three months in several states — that homeowners and investors are left spinning, wondering what just happened to them.

The good news is that these folks are starting to catch on and realize that these are ideal rental conditions. Why lose a home when you can find someone else to move in and pay all or most of the mortgage bill?

Indeed, homeowners would prefer to rent their homes rather than to lose them outright.

Of course, homes in foreclosure are not necessarily always on the market as rentals. In fact, homeowners and investors may not even know that renting is an option.

That’s where you come in.

Homeowners are generally very attached to their homes, but might be willing to entertain reasonable rental offers if it means salvaging their long term investments.

So how do you approach a homeowner in distress and propose a rent agreement?

Here are some basic pointers:

Learn about the property
Before contacting someone facing foreclosure, find out as much information as you can about the home. Research how much the home is worth, how much the homeowner still owes and the monthly mortgage amount. This information will give you a good starting point to know what to offer in terms of rent.

Expect non-traditional agreements
Any agreement you strike with a homeowner facing foreclosure will probably follow unconventional terms. For example, consider offering a six-month agreement or even a month-to-month. If you are willing to tolerate minor inconveniences in exchange for a lower rent cost, propose showing the house to potential buyers while you are renting. Homeowners in distress will probably slice several hundred dollars a month off the mortgage if it means you are flexible and help them cover some or all of their mortgage.

Tactfully propose a fair exchange
A simple way to approach a homeowner is with a hand-written letter that describes your needs as a renter. Offer to provide references upon request and explain that you are willing to entertain flexible terms. As a negotiator, it is to your benefit that the homeowner be aware that you know he/she is in foreclosure.

Where do you find homeowners facing foreclosure?

First, understand that homes that have been foreclosed are no longer in the hands of the homeowner. These are being resold by the original lenders and are probably already listed with agents. Therefore, the properties you should look at are classified as preforeclosures. This is an important point — make sure you fully understand the differences between homes in foreclosure and preforeclosure (facing foreclosure).

To check out a very comprehensive list of nationwide preforeclosures CLICK HERE. Start your nationwide foreclosure rental search now — it is free to search with a FREE 7-Day Trial.