Tenants Beware- Are You About to Rent a Foreclosed Home? Did You Think to Check?

Nobody seems to do any kind of checks on the Landlord- and they should. If you are looking to rent a home, you already now that the Landlord will want a recent credit report and references. Have you thought about making sure that your prospective landlord actually owns the property? and that he/she has the right to rent the property?

Even if the property is listed in the MLS, it does not necessarily mean that the listing agent has performed due diligence to make sure that the person that shows them the property and purports themselves to be the owner  is in fact the said owner of the property, or has the legal right to rent it.

Recently, on the news was the case of  a rental scam artist, who took advantage of the flood of neglected, empty houses on the real estate market caused by the huge increase in recession-driven foreclosures, and was able to show the property as his own, obtain a security deposit and first months rent, and NEVER delivered the property as promised. He couldn't. He did not own it.  Those would-be tenants lost their money.

How does this happen? Homes owned by banks and other financial institutions may take months, or even years to sell, leaving them unchecked for the duration and sitting targets for the scammers. Don't think that it will not happen in your area. Others have thought the same thing. Don't fall victim to traps.

In another case, an individual lived in, and paid rent on a house for over a year before finding out that he was unwitting and unwilling participant in  a rental scam and that the "landlord" didn't actually  own the house.

and don't forget

... no matter how nice the property appears, and how well kept is seems to be, is it possible that the home is considered a distressed property?  A distressed property  means that the home is under some stage of the foreclosure process. Would you want to rent a home that was in imminent danger of being foreclosed?

Don't be fooled or scammed. Do your homework and hire an experienced agent  who knows to check these things, and  just as important-  knows how. - and I just happen to know someone.:)

Contact  me today and I will help you find your next home.

If you are out of our service area, we offer a FREE referral service to a top agent in your neighborhood, or anywhere in the country. Click here for more info

Buying, Selling or Renting a Home in Fairfield County?  We'd love to represent you.

If you are in the area, or would like to be, feel free to email us here or visit our main  site at

www.CThomesAndRealEstate.com

If you have a question about buying, renting or selling Real Estate in  Fairfield County, and are in need of representation, I invite you to contact me. I know the market like the back of my hand, know marketing inside and out, am a skilled negotiator- and I'd love to be on your side :) - Judy

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Bad Credit Report from Prospective Tenants? Landlords Take Note

Here is the first in our new real estate law series "Tip of the Week" that you can look forward to every Wednesday. The Tip of the Week is brought to you by OnlyClosings.com

Did you know… If a landlord denies an application or requires a co-signer based on information obtained from a consumer credit report, the landlord must follow the rules of The Fair Credit Reporting Act (FCRA) and provide an “adverse action notice.”

This notice must include:
- the name, address and telephone number of the CRA that supplied the consumer report, including a toll-free telephone number for CRAs that maintain files nationwide;
- a statement that the CRA that supplied the report did not make the decision to take the adverse action and cannot give the specific reasons for it; and
- a notice of the individual's right to dispute the accuracy or completeness of any information the CRA furnished, and the consumer's right to a free report from the CRA upon request within 60 days.

To read the article by the Federal Trade Commission “Using Consumer Reports:  What Landlords Need to Know.” click here.

The weekly Tip-of-the-Week* is supplied by Only Closings --

a law firm devoted to real estate closings.

      - Our closing staff is made up of seasoned, experienced real estate attorneys.
      - Close where it is most convenient for the client (home, office, job or bank)
      - Very competitive closing fee and no hidden fees!
      - No fee consultations.
      - Personalized, responsive service from all of our attorneys and paralegals

To learn more about Only Closings and how they can help you quickly close a property transaction, call them at 203-563-9677 or visit them online at www.OnlyClosings.com

*The content within the "Tip-of-the-Week" is strictly for informational purposes and not intended to be interpreted and/or used as legal advice. Only Closings and OnlyClosings.com is a service provided by Tamara L. Peterson Attorney at Law LLC.

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Communication is Key when Selling a Tenant Occupied Property

For Landlords: Selling your home when a tenant is occupying the premises.

In the last several years, many homeowners who were unsuccessful in selling their home at their desired asking price, opted to rent their home.  This was a new arena for many.    Being a landlord is not for the weak at heart.  There is a good amount of work involved but in many instances it can be a profitable venture and also there can be some substantial tax advantages when the property is eventually sold.  The property can be depreciated, but be careful there are certain holding periods and one should always speak to their accountant to make sure the timing is correct to reap the tax advantages.

When the time comes that the property owner lists the home on the real estate market, there must be good communication between the Homeowner and the Tenant regarding the Tenant vacating the premises.  If the Buyer of the property is looking for an investment property, having a property with a rock solid rental history is key.  However, if the Buyer is purchasing the home as his or her’s primary residence, the property must be vacated before the closing.  This is when the situation gets tricky.  The Seller wants to maximize on the rental income and does not want the property vacated until the Buyer has his/her mortgage commitment but that usually occurs days before the actually closing.  The Seller/Landlord must give notice as required by the lease and if there is no lease than a minimum of 30 days.    The last thing anyone wants to get involved with is an eviction proceeding.    Communication is key between the Seller and the Tenant.

Attorney Felicia B. Watson

FeliciaWatson@sbcglobal.net

Tenants: Don't Sign That Lease!

...unless you are satisfied with the condition of the home or apartment.

I represented a landlord who was renting his furnished apartment. We received a call from prospective tenants who  were in a big hurry to find something. So much so, that they furnished their credit report prior to seeing the apartment, brought bank checks for the security and first months rent, and asked for the lease to be prepared in case they liked the home.

When we all met at the apartment, they were very happy, signed the lease, and delivered the checks to my client. They even breathed a sigh of relief that the apartment was as nice as they thought it would be, based upon the pictures that they saw on the internet.  Later that day, they even commented about how they liked the decor.

A  few days later, the tenant called, and said they were not happy with the condition of the apartment. Mind you , the lease was signed, and money exchanged hands. They "formally" accepted the apartment when they signed the lease, and paid monies to the Landlord.

What I must say to you is that no matter how much of a hurry you are in to move into an apartment, if it does not meet your standards, say so. The time to do that is PRIOR to signing the lease. Take your time, check out the apartment thoroughly, and make sure that you are happy.You are signing a contract.

These tenants were absolutely lovely- very nice people, but unfortunately, out of luck as far as any refunds or changes to the lease- (unless the Landlord is willing to do anything for them, and he is not bound to do so.) and I feel badly about it. This all could have been averted by looking over the apartment in a more thorough manner, and noting anything that they wanted done prior to occupancy as an addendum to the lease. In their case, since they wanted to move right away, the addendum could have been written whereas whatever they felt was necessary to be done could be completed within a certain time period.

You should always contact an attorney if you have any legal questions.

Bottom Line: Don't sign the lease if you are not 100 percent satisfied.

Landlords- Click Here to get your home or apartment rented!

Tenants: Click Here  and I'll help you find a great rent!

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Forbes.com Says That the Worst City to Rent in the Country is in CT!

If the worst city to rent a home in the entire country is right in your backyard, does that mean that you should make every effort to buy instead? ...What about if the worst TWO cities in the country  to rent a home are geographically connected to where you live?

When you get right down to it, the decision to rent vs. buy is a financial one, that comes with weighing in the pro's and con's of  both for your own financial situation and  the  economy. 

Just a few weeks ago, Forbes.com  published an article about the best and worst cities in the country for renters.  Marcus & Millichap, a real estate investment firm based in Encino, California, collaborated with Forbes on this piece, and rated the 44 biggest cities in the U.S. They based their  article on four criteria: First quarter average rent, and how much it changed year-over-year;  vacancy rates,  (higher vacancy rates mean lower rent prices), and the  cost of renting versus buying.

In short, New Haven, CT was the WORST city in the country for renters, with New York City coming in second. The fact that Fairfield County, Connecticut connects those regions should tell you something.  If you look at their findings, you would probably agree that our area, although not in their survey, is limited  for rental opportunities. Add the high inventory of homes for sale coupled with low interest rates, and at this point, it is very reasonable to surmise that it is cheaper to buy rather than rent in our area of  Southwestern Connecticut.

That being said, general geographical statements as to the real estate market may not be true in all cases- it is going to be somewhat different for everyone based upon their particular needs. I have found  an outstanding rent vs. buy  calculator,  courtesy of The New York Times which I would like to share with you.

Whether it's better for you to buy or rent, contact me, and  I would be honored to work with you. I work with Landlords and Tenants, as well as Sellers and Buyers.  You can be assured of the best representation and service- and that's my personal guarantee.

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