Category Archives: Foreclosure

Landlord Must Disclose Notice of Default to Prospective Tenants

Summary of new law from the California Association of Realtors:

Starting January 1, 2013, every landlord who offers for rent a residential property containing one-to-four units must disclose in writing to any prospective tenant the receipt of a notice of default that has not been rescinded.

This disclosure must be made before executing a lease agreement. If a landlord violates this law, the tenant can elect to void the lease and recover one month’s rent or twice the amount of actual damages, whichever is greater, plus all prepaid rent. If the lease is not voided and the foreclosure sale has not occurred, the tenant may deduct one month’s rent from future amounts owed.

The written disclosure notice as provided by statute must be in English, Spanish, Chinese, Tagalog, Vietnamese, and Korean.

A property manager will not be held liable for failing to provide the written disclosure notice unless the landlord has given the property manager written instructions to deliver the written disclosure to the tenant. This law will expire on January 1, 2018. Senate Bill 1191.

Start building your memories,
as you turn your house into a home. 

As you might guess, this document is a compilation of information from our own efforts as REALTORS, as well as input from other REALTORS in our Coldwell Banker office.  I hope it has been of value to you.  Don’t hesitate to email us with any suggestions that will make this document better for you and your fellow homeowners!
Be sure to follow us on Facebook at www.Facebook.com/ElkGroveRealEstate.  For information about properties available for sale and for more information for buyers and sellers, please visit our website at www.ElkGroveRealEstate.com and don’t hesitate to give us a call or drop us an email with your questions.

WANT TO USE THIS ARTICLE IN YOUR E-ZINE OR WEB SITE? You can, as long as you include this complete blurb with it: Jack & Tracey Edwards, your real estate advocates, specialize in helping buyers and sellers in Elk Grove, CA,  and the greater Sacramento area.   Get information about available homes online at:  www.ElkGroveRealEstate.comOur mobile clients can find us at Mobile.ElkGroveRealEstate.com

 

How Long Do I Have To Wait To Buy A Home After Short Sale, Foreclosure or Bankruptcy?

Almost every agent has been asked the question:  How Long Do I Have To Wait To Buy A Home After Short Sale, Foreclosure or Bankruptcy?

The answer is…”It Depends”.

That’s because it varies with the type of loan you are trying to obtain, the factors leading up to the short sale, foreclosure or bankruptcy, and what has happened since the big event.  And, if that is not complicated enough as it is, the rules change all the time as lenders review and update their criteria, so talk with your favorite lender or one of my favorite lenders noted below.

Currently, you can expect the following time tables for obtaining an FHA loan:

Chapter 7 Bankruptcy 

  • At least 2 years from discharge date.

Foreclosure. 

  • At least 3 years from completion date.

Short Sale 

  • There are no time restrictions if the borrower was current at the time of the short sale and all mortgage  and installment payments were made within month due for the previous 12 month period prior to application date, and the proceeds from the short sale serve as payment in full.
  • 3 years from completion date if in default at time of short sale. Keep this in mind if your lender is telling you to stop paying so that you may qualify to get a loan modification.  You probably won’t get the loan modification after all the hassle and now you will have to wait 3 years to qualify to buy a house.

I always suggest that you should talk with your lender at least a year or so before you are thinking about buying so that you have time to work on re-establishing your credit as well as working on improving your credit score so that you will qualify for the loan.  Additionally, you should start saving for the down payment and closing costs.  Plan on saving up about $5,000 plus a minimum of 3.5% of the purchase price of the home you want to buy.  That should be enough to get you into an FHA loan.

If you don’t already have a preferred lender, I suggest that you talk to at least two lenders to get a feel for which one you are comfortable working with.  Here are three suggestions to consider:

Frank Monaco at Guaranteed Rate Affinity. 916-478-9586 Frank.Monaco@Grarate.com
Laura Churchill at Guaranteed Rate.  916-549-6776  laura.churchill@@Grarate.com
Steve Germoles at Comstock Mortgage.  916-977-1232  sgermoles@comstockmortgage.com
Chris Opfer at EstaRMortgage.  916-709-3257 Chris.Opfer@EstaRM.info

Here are some things that you should know and consider:

1.  In bankruptcy, the timelines start from “discharge” date NOT filing date.  Short Sale and Foreclosure timelines start from the completion date.

2.  Buyers should start the process of re-establishing credit and make sure their credit lines after the bankruptcy are current and any credit lines do not exceed 50% of the available credit being used.  You may want to talk with  Blue Water Credit for help with re-establishing your credit.

3.  Buyers should also consider practicing being homebuyers.  Work with your REALTOR and your lender and estimate what your monthly expenses will be with the purchase of a home.  Next, place the difference between your current rent payment and the anticipated monthly cost of your home payment, taxes and insurance into a saving account.  Do this  for the year that you are already saving up for your down payment.  If you pass this test, then you are truly ready to buy your next home.

Start building your memories,
as you turn your house into a home. 

As you might guess, this document is a compilation of information from our own efforts as REALTORS, as well as input from other REALTORS in our Coldwell Banker office.  I hope it has been of value to you.  Don’t hesitate to email us with any suggestions that will make this document better for you and your fellow home owners!

Be sure to follow us on Facebook at  www.Facebook.com/ElkGroveRealEstate.  For information about properties available for sale and for more information for buyers and sellers, please visit our website at www.ElkGroveRealEstate.com and don’t hesitate to give us a call or drop us an email with your questions.

Make sure to share this article with your friends on Facebook by clicking on the word “Share” at the top of the article.