Queercents

Imagine you’re a renter. You’ve been paying your rent faithfully every month. Then you come home from work one day to find an eviction notice on your door. Your landlord has defaulted on the property, a bank is the new landlord, and they’re forcing you to get out. What do you do?

For the past two years, the headlines have been dominated about housing foreclosures. One of the aspects of the foreclosure crisis that has received very little attention, however, is the role that rental properties have played in the housing slump. Many landlords have seen their properties go into foreclosure, and as a result, many tenants have found themselves in very dire straights. In Minneapolis alone, 65% of foreclosures have been on rental properties. Nationwide, it is estimated that 40% of people to lose their homes to foreclosure are renters. And according to a report by the Center for Responsible Lending, the number of rental properties going into foreclosure is expected to rise.

Fortunately, renters have very specific rights when it comes to the foreclosure process, thanks to a bill passed in April.

Protecting Tenants at Foreclosure Act of 2009
According to the Protesting Tenants at Foreclosure Act of 2009, banks or owners who obtain a property through the foreclosure process do not have the right to evict a tenant if a lease is still in effect. The exception is if the new owner wants to live in the property. In this case, tenants have to be served 90 days notice – which is much longer than the typical eviction process. In summary:

• Leases would survive a foreclosure — meaning the tenant could stay at least until the end of the lease.  The lease survives and ends as it would had there been no foreclosure.
• Month-to-month tenants would be entitled to 90 days’ notice before having to move out
• Any state legislation that is more generous to tenants will not be preempted by the federal law
• These protections apply to Section 8 tenants, too

Relocation Assistance
If Fannie Mae or Freddie Mac owns the mortgage on a foreclosed property, renters should consider themselves lucky. Both agencies have vowed to assist renters with the relocation process by providing money to help renters pay security deposits and first months’ rent on a new place to live. The only way that a tenant would know the details of their landlords’ mortgage is to wait for Fannie Mae or Freddie Mac to contact them. That can be a bit unsettling, because you may not have an exact time frame for that knock on the door. One real estate appraiser I talked to said that their office is so backlogged with foreclosed properties that it can often take 9-12 months before Fannie Mae takes action on a foreclosed property. However, the standard is that Fannie Mae will contact the tenant within 30 days of the property going into foreclosure.

To find out if you are eligible for rental or relocation assistance from Fannie Me, click here. Although Fannie Mae will allow you to sign a new month-to-month lease in order to keep people on the property, you should be aware that the property will be on the market, and that you would have to be willing to allow real estate agents to show the home.

If you’re living in a rental property that has undergone foreclosure, here’s wishing you the best as you and your family relocate.

Additional Resources:
NOLO
Legal Assistance Resource Center

As the most robust season of the year for most real estate markets comes to an end, those whose properties have not yet sold face challenging decisions. Many eager buyers who came out of the woodwork in springtime and then finalized their purchases over the summer are now gone from the landscape, and less buyers means greater competition for sellers whose listings are languishing.

Here are half a dozen helpful tips for home sellers who want to attract a buyer and close a deal before colder weather sets in, real estate markets slow down, and most of those who are shopping for a new home go into hibernation until next year arrives.

1. Evaluate Realtor Performance
First of all, evaluate your listing agent’s performance in an objective manner. Are they doing enough to advertise the property, and have they held any Open Houses to encourage visits from potential buyers?

If you live in a LGBT enclave, does your real estate agent understand the local LGBT market and have strong connections to those who live and work in the neighborhood? Sometimes hiring a broker who is also an active and supportive member of the LGBT community can be an advantage if you are a LGBT homeowner. Read the rest of this entry »

With housing prices and interest rates plummeting faster than interest in watching more Michael Jackson coverage, the savvy investor/home buyer sees a thrilling opportunity that at first glance, may seem just out of reach. As a financial advisor, I work closely with mortgage brokers who are facing a daunting challenge of helping their clients find that pesky 3.5% minimum down payment in order to qualify for an FHA loan. While some exceptional circumstances allow for 100% financing, the days of placing nothing down on our home loans are all but history. It may now be time for us to capitalize on a market strategy for locating the path to the keys to our new home.

Now, the search for a down payment acts as a major caveat clouding the vision of both the homebuyer and the mortgage broker. I have discovered a strategy that assists both to their goal. We know it may be a good time to buy, but our problem is no longer the price or interest rate, it happens to be the ability to come up with the seed money required to get that price or interest rate. And time is of the essence with the new offer of a tax credit for first-time home-buyers!

Enter the Single-K.

With most mutual fund companies offering a product that allows an individual, couple (married or domestic partnership) and their immediate family to start a plan that is essentially an equivalent to a larger company’s 401(k), the Single-K works for those who own a business and it carries a number of distinct benefits. First, the Single-K has a very handsome contribution limit should your business be profitable. But contributions are not the point of this piece. The access to a down payment is. And what if you don’t own a business? Read the rest of this entry »

The clock is ticking toward the expiration date on the special $8,000 new home buyer credit currently offered as part of the government’s emergency economic stimulus legislation. Unless the provision is amended or renewed, buyers only have until the end of November to completely finalize their purchases.

First timers are urged to do whatever they can to streamline the real estate shopping experience, and working with a gay-friendly Realtor and lender can often save valuable time for LGBT buyers.

A gay or lesbian couple may need to seek legal and financial advice in order to help them better understand their rights as owners, for example, since many of the benefits related to real estate ownership are only available to those couples who are legally married.

An experienced Realtor accustomed to working with LGBT clients will either know the answers immediately or be able to quickly refer the buyers to a reputable real estate attorney who is well-versed in complex LGBT legal issues.

For a loan processor unfamiliar with financing for LGBT partnerships confusion may also arise, and that usually translates into frustrating delays. So work with a mortgage lender experienced in making loans to the LGBT community. Read the rest of this entry »

During an exceptionally slow real estate market – many sellers worry that their vacant listings may suffer from physical deterioration, a loss of curb appeal, or even vandalism. Here are six tips for helping to care for property without getting stressed out about potential problems. Follow them so that vacation condo at the beach or the vacant house with the sale sign in the yard does not cause any added angst.

1. Invest in Curb Appeal
The first thing to do with a vacant listing – and it is a good idea even for listings that are occupied – is to put the lock box out of view. Seeing a lock box hanging from a front door knob is a telltale sign that nobody is home. Keep the yard trimmed and manicured and put a fresh coat of paint on the front door. Make sure the entranceway is lighted at night, and that windows facing the street on ground level are covered with sheer curtains or blinds that let in light but protect from prying eyes.

2. Notify Neighbors and Local Police Patrols
Just as you might while vacationing, enlist the help of neighbors or local police to keep a watchful eye on the house. A neighbor may be willing to park an extra car in front of your property from time to time, to create the illusion that it is occupied. Have someone trustworthy enter the home once a week to give it a once-over and check for any signs of trouble or needed repairs. Read the rest of this entry »

Most people shopping for a home this year are keenly aware that a special $8,000 new home buyer credit is being offered as part of the government’s emergency economic stimulus legislation. But the clock is ticking toward the expiration date and unless the provision is amended or renewed to extend the deadline, buyers only have until the end of November to finalize their purchases. First timers are urged to do whatever they can to streamline the real estate shopping experience, and working with a gay-friendly Realtor and lender can often save valuable time for LGBT new home buyers.

A gay or lesbian couple may need to seek legal and financial advice in order to help them better understand their rights as owners, for example, since many of the benefits related to real estate ownership are only available to those couples who are legally married according to state and federal statutes. An experienced Realtor accustomed to working with LGBT clients will either know the answers immediately or be able to quickly refer the buyers to a reputable real estate attorney who is well-versed in complex LGBT legal issues.

Similarly, those who want to buy together gay may encounter complications along the way when trying to secure mortgage financing. They may need guidance regarding whose credit report or income to submit on the loan application, or they may need reassurance that, for example, the mortgage documents and deed are crafted in such a way that they reflect equitable sharing of assets and liabilities. For a loan processor unfamiliar with mortgage financing for LGBT partnerships this may create confusion, and when mortgage applications encounter people who are confused that usually translates into frustrating delays. Read the rest of this entry »

“Location, location, location” can sometimes be a little too much like the expression “water, water, everywhere – but not a drop to drink” for those real estate shoppers who want to ensure that they own a home in a gay-friendly neighborhood. There are tons of houses on the market right now, and buying opportunities are fantastic. In fact, the inventory of bargain priced homes for sale is larger and more diversified than it has been in decades.

But the question in the mind of most GLBT buyers is whether or not the location of the property is also adequately and appropriately diversified. Before making the biggest and most important purchase and investment of a lifetime, it helps to know whether or not the money is going into a neighborhood that will not only support the value of the real estate but also the values and lifestyle of the homeowner.

Before buying any property, anywhere, it is always advisable to get to know the area ahead of time, with firsthand experience and personal observation. Spend as much time as possible walking the streets near the house or condo and meeting people, because once the home is purchased those strangers will likely be the welcoming committee, the fellow condo association voters, and your new next door neighbors. Read the rest of this entry »

Burn baby burn. That’s our goal! Jeanine and I want to pay off our mortgage in the next ten years. If I had my druthers, it would be sooner. Why? Living in a home that’s paid for will alter our life. Here are five reasons why:

1. I gain peace of mind. There is something to be said about owning our most significant asset outright. Until this happens, this asset is technically a liability.

2. I no longer have to worry about job loss. Our biggest monthly expense is our mortgage. If Jeanine or I lost our job, we’d have to dip into our savings to cover this cost. If this expense was eliminated then our ability to survive without income increases dramatically. This is a true freedom.

3. It reduces my cost of living. There are two paths to wealth. Increase income or reduce your expenses. Do both and you’re set. Read the rest of this entry »

In March 2009, there were reports of lenders getting back into the jumbo loan business (this time for their own investment portfolios and not for bond traders on Wall Street):

Bank of America, the country’s largest mortgage lender, is rolling out a large program to finance jumbo loans between roughly $730,000 and $1.5 million, with fixed 30-year rates starting in the upper 5 percent range.

According to Inside Mortgage Finance, the jumbo sector showed signs of life in the second quarter of 2009 with Bank of America and Citigroup leading the way. Home-Account (the mortgage-finding service with a little twist) noted on its blog last week, “Welcome back jumbo. Too bad most of us can’t qualify.” They explained there’s a catch if you need one of these loans today (which is still most of coastal California):

Want a jumbo loan? Then be ready to make a 30-40 percent down payment on your new house.  This immediately eliminates refinancing most of the older jumbo loans in California, for example, where more than half of the mortgages were already of jumbo size. If your jumbo mortgage is underwater don’t expect to be able to refinance — or even to apply for a mortgage modification, since the Obama plan, for example, doesn’t even cover jumbos. Read the rest of this entry »

It’s summer in New York and it’s that time of year when there are tons of moving vans, empty boxes and perfectly fine furniture taking up space on city streets. There’s always a lot of advice on how to find an apartment in the Big Apple, but little advice on how to leave that apartment. One of the biggest questions that comes up is about the security deposit: how do I get it back?

Well, the answer varies from state to state, but there are some simple steps everyone should take to make sure that money gets back out of the hands of greedy landlords. For a list of how long your landlord has to get you back your money, see this list. Be sure to note that in places like Los Angeles, landlords are required to pay you interest for the time they have held onto your deposit. New Yorkers, your first stop should be at the Web site of The Met Council. They’ve saved me -for free – countless times.

In the meantime, the first thing you should do is memorialize all conversations you have with your landlord about the return of your security deposit. That means sending him/her a letter, stating what you discussed and making sure he/she signs for the letter upon its delivery. The only way to do that is to send all correspondence via Certified mail. Read the rest of this entry »