What Is Squatter’s Rent

by Lynnette Khalfani-Cox, The Money Coach on May 10, 2011

in Real Estate


Q: I’ve heard the term squatter’s rent used many times. Can you tell me what is the definition of squatter’s rent?

A: Squatter’s rent is the money someone saves up by not paying their mortgage. In many states, it is taking one year or more for someone who is behind on their house payment to be formally evicted or go through the process of foreclosure or a short sale. During that year or so, an individual or family that is not paying the mortgage may be strategically saving money for their next apartment, home or to payoff other bills. This saved cash is known as squatter’s rent. Squatter’s rent is a major consideration when someone is considering walking away form their home or doing a strategic default on their mortgage. Before you decide to walk away from your home, make a strategic default, or amass a pile of squatter’s rent, you should consider the impact that such impact could have on your credit score.

This Article Answered The Following Questions:

  • can i ask a squatter to pay rent ?
  • definition of a rental squatter
  • sqatters rent
  • what is a sqatters lease
  • What is a squatter apartment
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Lynnette Khalfani-Cox, The Money Coach

Personal Finance Expert and Co-Founder at Ask The Money Coach.com
Lynnette Khalfani-Cox, The Money Coach is a personal finance expert, speaker, and author of numerous books on personal finance. She appears frequently as an expert commentator on television, radio and in print.

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