With the housing market still recovering from the economic stint, many people are thinking twice before they sign mortgage papers and starting to lean towards a rental agreement. But since many of these renters aren’t your typical kid out of college, they might be taking a second look at the quality of the lease agreement for a single family home.
In 2009, the Protecting Tenants at Foreclosure Act was implemented to protect residential tenants from being promptly evicted following foreclosures. This law generally applies to all residential leases. Seeing as how it’s still few and far between to drive down the road without seeing foreclosure signs, this act ensures that all tenants receive a 90-day notice before the eviction.
For the lease to be legit, the tenant cannot be the mortgagor or the parent, spouse, or child of the mortgagor. Additionally, the lease must be the result of a secondary party, and rent must be in the neighborhood of fair market value for the property, except if rent is reduced due to a subsidy (federal, state or local.) An invalid agreement gives the owner the opportunity to waive the 90-day notice; otherwise the terms of the lease will be honored.
This post was written by Stephen Hachey. Follow Stephen on Google, Facebook, Twitter & Linkedin.
It’s not something anyone wants to think about, let alone try and figure out during a grieving period, but settling the estate of a loved one is something the bank will only let you ignore for so long. Given that the average American family has more than one child, specifically 2.5 children, deciding who gets to pay the remainder of the relative’s mortgage is not something that everyone would volunteer for at once. So, by default, who is responsible for paying off the mortgage?
Due to the economic crisis, lenders, creditors, and debt collectors are starting to get more aggressive. In general, when a person dies, that individual’s estate becomes responsible for any debts the individual owed. The individual’s executor or personal representative is responsible for paying those debts, but is not liable for the debts, just responsible for paying the debts out of the property of the estate.
Unlike many debts, a home mortgage is a “secured debt,” which means the lender has a right to foreclose on the real estate if the loan isn’t paid off. If the deceased person had a home mortgage, then the result depends on whether someone else co-signed the note and mortgage. For instance, if a married couple jointly owned a house and both signed a note and mortgage, then the surviving spouse would receive the house, and would be responsible for the mortgage payments.
This post was written by Stephen Hachey. Follow Stephen on Google, Facebook, Twitter & Linkedin.
Owning property, particularly residential property, is a big undertaking. There are many people who have a knack for providing the best lifestyle possible for local residents; however, there are some parts of the job that are easier than others. For instance, there are times when certain residents just don’t work out due to late or missed payments. More specifically, it’s difficult when new owners obtain property and have to evict former tenants.
The new owners will typically have a Writ of Possession built directly into the foreclosure proceedings, which means that the owner now has actual possession of the real property. Once these papers have been signed and certified, the current occupants are notified via mail. If the occupants still remain, the papers are delivered to the local sheriff’s office and depending on current volume, authorities will hand deliver the eviction notice. This can usually take up to a month depending on cooperating parties.
Generally within 3 days of the foreclosure sale the borrower specified on the loan would be sent a Notice to Quit. Within 90 days, all residents would be notified of the eviction. It is possible for tenants to remain on the property longer than 90 days if the following circumstances apply, the lease was renewed prior to the foreclosure, if the tenant is not the borrower, if the rent being paid is considered fair market value, or if the tenant continues to pay the rent specified in the lease.
This post was written by Stephen Hachey. Follow Stephen on Google, Facebook, Twitter & Linkedin.
Anybody who attempted to apply for a loan prior to 2010 knows how vague and difficult it used to be to apply for a loan. With hidden fees and surprise increases that could come months later, it was difficult to make comparisons between different mortgages. But as of January 1st, 2010, this ability to make comparisons became easier thanks to the Good Faith Estimate.
The Department of Housing and Urban Development now requires all lenders and brokers to supply applicants with a standardized form within three business days of the lender or broker receiving the application. What does this do? Not only does it hold the lenders and brokers more accountable for the loan offers and costs, but it aids the borrower in understanding what they are really getting in to.
With the reduction of vague wording, borrowers are now able to clearly read the main features of the loan including the amount, term, initial interest rate and total monthly payment. All of the questions that borrowers of yesteryear use to wonder are now in simple terms. Are you worried that your interest rate or your loan balance may rise even if you are making payments on time? Is it possible for your monthly payment to rise? Borrowers today no longer have to worry with the Good Faith Estimate because all of these questions are answered on the first page.
And it gets better. You no longer receive an itemized list of charges that may have confused you before. Now you get one sum of the fees and you are now able to see which charges are coming from the lender and which are coming from third parties. Are you using a mortgage broker and concerned about how much he is getting paid? You no longer have to worry about this since the form also lays that out in black and white for you as well.
This post was written by Stephen Hachey. Follow Stephen on Google, Facebook, Twitter & Linkedin.
When you begin taking on a lot of rental properties, it can become overwhelming. You may want to turn to a property management company to help you handle the properties, but because these properties are large assets, you can’t just trust anybody with them. So how do you find a great company to trust?
First ask for referrals. Chances are, you know somebody who is happy with their property management company. Next, interview them. Just because somebody else is happy with the company doesn’t mean the company fits all of your needs. You also don’t want to base your choice on the price. Of course this is going to be a factor, but this choice should come after you’ve gotten all of your questions out of the way and you’ve have made sure there aren’t any hidden fees.
Begin by asking about the fees and ensure they all make sense to you. Nobody likes hidden fees. Next, ask the following questions:
How many units do they currently manage and what type of property are they? You don’t want to hire a company for an entire apartment complex if they usually deal with single family homes.
How long have they been in business? Never consider hiring anybody who has been in business less than a year.
What percentage of fees do they collect and how do they handle taxes? Do they keep the late fee or do you receive this?
What is the cost of the eviction process from start to finish?
How do they advertise your vacancies? What is the average length of time properties stay vacant? Who pays for advertising?
Is there a cost to the landlord for new leases signed? What are the lease options?
How are tenant calls handled? Do they have emergency hours on the weekend? How does the company handle repairs and maintenance?
After you have reviewed these elements of each company, make sure to thoroughly read the entire contract. Never sign a contract without asking any questions you feel you are important.
This post was written by Stephen Hachey. Follow Stephen on Google, Facebook, Twitter & Linkedin.
With the current state of the housing market seeing a very slow increase, and more people renting than ever, it may seem like the right time to invest in rental property. But most people would be mistaken to think that just because it seems to be the right timing, it is. In fact, when you decide to invest in real estate, you shouldn’t ask yourself “when” but “who”. Who are you? Are you capable of owning and maintaining real estate? Do you have the time? Do you have the energy? Do you have the patience?
Many believe that owning rental property is as easy as purchasing a home and soon profiting from a renter. This isn’t always true. Before you purchase your rental property, here are a few things to consider.
Is your debt under control? Putting yourself into further debt and expecting the property to bring you another form of income is not always the best answer. Depending on the market in your area, the property may be sitting with a for rent sign outside for awhile. Can you afford to keep the property and pay the mortgage while it is vacant?
If you answered yes, the next question to ask is if you are able to pay for maintenance and upkeep. If something breaks, you are responsible for fixing it. These problems can get rather costly. You may be responsible for buying new appliances should one break or fixing the roof if it caves in. Unless the renter causes the damage, it is all on your shoulders to fix.
But what if the damage is caused by the tenant and they don’t pay it? You may find yourself paying legal fees. Can you afford these? There may be legal fees for anything from going to court for eviction to hiring a lawyer to sue for property damage.
There are a range of surprise costs that come into play as a landlord so before you choose to invest in rental property, it is best to access your budget and ask yourself how much extra money you would be willing to spend.
This post was written by Stephen Hachey. Follow Stephen on Google, Facebook, Twitter & Linkedin.
When you are renting a property and your landlord becomes delinquent with HOA fees in Florida, you might be worried that the HOA will foreclose on the property you are living in. This is a real and frightening possibility. However, it does not mean that you are entitled to stop paying your rent. As long as you signed a lease agreement, you must abide by the lease and make your monthly rental payments to the property owner. Even if the HOA initiates foreclosure against the property owner, you are still bound by the contract you signed and you must pay rent.
The property owner, even when delinquent in HOA fees, is still the legal owner of the property you are renting. Therefore, you must continue to make rental payments, otherwise you can be evicted from the home. You will be legally protected. If you have a lease, you will be allowed to finish out the duration of your lease in the property. Your rental payments will be made to the HOA once the foreclosure is finalized, but not before then. If you are living in a unit or a home with only a month to month lease, you are legally able to stay in the home for 90 days after a foreclosure.
Tenants’ rights during a foreclosure are protected under the Protecting Tenants at Foreclosure Act. You will not be thrown out of the property when foreclosure occurs, as long as you continue to make rent payments. Remember to make your rental payments to the property owner, even if he or she is delinquent in HOA fees. That person is still the property owner until a foreclosure is finalized. Stephen K. Hachey, a Florida real estate attorney, can help you navigate this seemingly complicated process and make sure that you are represented properly. Contact our offices at 813-549-0096.
This article is for general informational purposes only and does not establish an attorney-client relationship. Please contact a licensed attorney in your state of residence. For more information on our services, please visit our website at www.floridarealestatelawyer.org/
This post was written by Stephen Hachey. Follow Stephen on Google, Facebook, Twitter & Linkedin.
With the federal government encouraging loan modification for borrowers who might be upside down on their mortgages or defaulting towards foreclosure, many lenders are caught wondering whether they should foreclose, modify or both. Before the lawsuit settlement between 49 states and the five largest mortgage lenders, banks would routinely pursue foreclosure while at the same time considering loan modifications for their borrowers. This was confusing to people. Consumers who thought they were in the process of a loan modification found they were receiving foreclosure notices, and others who were fighting a foreclosure had no idea that a modification of their loan might be on the table.
In Florida, the rules are different depending on whether a foreclosure has already been filed. If a homeowner is struggling, but a foreclosure has not been filed yet, the bank can offer a loan modification within 120 days of delinquency. If a foreclosure has already been filed, the lender has five days after the official foreclosure filing to invite the homeowner to apply for a loan modification.
While the rules put in place by the mortgage settlement are meant to make the process of foreclosure and loan modifications clearer for consumers as well as lenders, there are particulars and timelines that must be followed. Consider consulting a Florida foreclosure attorney before taking any action. Stephen K. Hatchey, a Florida foreclosure attorney, can guide you piece of mind. To receive a free consultation, contact our offices at 813-549-0096.
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In Florida, landlords need to follow two different paths to eviction, depending on whether the termination of the lease is due to a nonpayment of rent or some other lease violation. When a landlord decides to evict for nonpayment of rent, a 3-day notice is required to the tenants before eviction proceedings can begin. When a tenant is being evicted for a reason other than the nonpayment of rent, a landlord is required to provide a 7-day notice before beginning eviction.
After the notice is served, a landlord can proceed with the lease termination, which often results in an eviction. Once a tenant is served a 7-day-notice, some landlords will allow the tenants to rectify the situation before continuing with the eviction. For example, if a tenant is violating the lease by being excessively loud, the landlord may give him a chance to live quietly and not disrupt his neighbors. If the lease termination proceeds however, the tenant will have 30 days to vacate.
Landlord and tenant law in Florida can often be complicated. Before proceeding with an eviction, review the lease that is in place to make sure the eviction can be enforced, especially if it is for a reason other than the nonpayment of rent. Consider talking to Stephen K. Hatchey, an attorney who is experienced in residential property management law. Contact him at 813-549-0096.
This post was written by Stephen Hachey. Follow Stephen on Google, Facebook, Twitter & Linkedin.
