Real Estate Investor Rents Out Foreclosed Home Before Obtaining Ownership; Last Minute Title Snag Forces New Tenant Out On The Street

In Springfield, Missouri, the Springfield News Leader reports:

• Jacqueline Patrick moved the last of her boxes and furniture into her new rental home Monday. On Friday, everything came back out again. This wasn't a case of renter's remorse or an eviction. Rather, it was a series of mistakes and miscommunications that resulted in Patrick paying rent to a man who didn't legally own the home she had just moved into.

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• Chris Gatley, the owner of 417 Rentals, said the closing on the property had been pushed back and he had forgotten to tell his leasing agent. [Jacqueline Patrick] rented the property without knowing 417 Rentals didn't own it. Gatley said he bought between 20 and 30 foreclosed homes in the past year and hasn't had any other problems with closing the properties.

• [Real estate broker John] Heitz said there was some problem with the foreclosure process, and the bank may have to go back through those legal proceedings. Gatley said he'll likely have to start the whole purchasing process over again.

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• Gatley said he had already put more than $10,000 in the property between his $5,000 down payment and the costs putting on a new roof and converting the garage into another bedroom. "I don't make a habit of fixing up homes I don't own, by any means," Gatley said. "I probably just had too many things going. It's my fault -- I'm taking full responsibility." He said if he doesn't get the home, he's probably just out the investment. Gatley is also out the more than $1,800 he paid back to Patrick for her deposit, rent and two sets of moving fees.

For the story, see Family kicked out of rental that landlord didn't legally own.