More and more people are turning to renting homes as they wait to see what happens to the housing market in the wake of the recent recession. Looking to a foreclosure for rent may be an option that helps two families at once. While it takes a little more footwork than the average hunt for a home to rent, foreclosure homes for rent can offer substantial savings.

First, it’s important to understand the foreclosure process, which varies some from state to state. Unless you can afford to pay cash outright to buy a house, you will need to take out a loan, better known as a mortgage. This means that the bank gives you the money, but the property is essentially collateral against that loan. Foreclosure happens when a mortgage borrower defaults in repaying the loan and forfeits the property to the lender. This can happen for any number of reasons, including losing a job or unexpected medical costs. Even the government can foreclose on a home for unpaid taxes.

There are many steps along the path to foreclosure, and foreclosure houses for rent are easier to find earlier in the process. For reasons of liability and responsibility, banks do not act as a landlord and rent out foreclosed homes. While it can be maddening to know that a great house is just sitting empty, once ownership of a home reverts to the lender renters are generally out of luck.

Homes in pre-foreclosure are the best place to start looking for a rental. When a homeowner is facing foreclosure, they may not know all their options. If you can approach a distressed homeowner with cash in hand and a reasonable offer to rent their home, they may be willing to see the logic in this arrangement. You are offering to help them pay their mortgage, keep the house occupied and perhaps allow them an opportunity to avoid foreclosure.

Foreclosure renting takes a savvy person with both patience and flexibility. When renting a property heading to foreclosure, you may need to be willing to offer to make small repairs for the homeowner or allow real estate agents to show the property. It is likely that you will need to sign a non-standard lease, as the homeowner may not be able to specify an exact lease period.