Renting a Home After Short Sale or Foreclosure

With all of the short sales and foreclosures taking place borrowers are wondering how to rent with bad credit. Prospective Tenants have their credit pulled as part of the application process. Prior to the real estate anomaly, a low credit score would result in being declined, however, with the over whelming number of people losing their homes in short sales and foreclosures, owners and property managers find themselves making concessions.

In a post How to Rent a Home if You Have Bed Credit, Tamara Holmes reported, “According to a recent survey by Rent.com, 81 percent of property managers have seen a decline in the credit worthiness or credit score of prospective renters, and due to the shift, 43 three percent of landlords reduced their credit policy standards in order to fill vacancies.”

I realize many of the people who have lost their homes are good people who just hit hard times. If a prospective tenant just has a blip on their credit report associated to a distressed sale situation and no derogatory or criminal issues, I go to bat for them with our owners. What prospective tenants need to understand is, owners are the ones that approve or decline. I have to say, most of the people who I have rented to that have come from a distressed sale have turned out to be some of my best tenants.

Prospective tenants should have a letter prepared explaining their situation and expect to pay first and last month’s rent, along with a security deposit, along with having, references you can provide.

We do our very best to help folks coming out of mortgage misery. You can search for rental properties at Rent With Karen

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5 things to Know About Investor Financing for Real Estate

Feature post by Tim Horr, Thomas Louis Mortgage

As a mortgage broker I come across people who eager to invest in properties and take advantage of the current real estate values. With mortgage interest rates currently at a 40 year low and home prices so reasonable. It makes sense to invest in real estate because it really is a great time to buy Brevard County investment properties.  It’s a no brainer if you plan to pay cash, but if you want to leverage and obtain financing there are parameters to follow. Here are the top 5 things you need to know before you move forward on financing an investment property.

  1. You will need a relatively high credit score 680 at a minimum. Investor financing is the most credit scrutinized of any loan.
  2. The optimum purchase is with 25% down. You can get in with just 20% down but  I highly recommend  25% down. Once you see the numbers you will agree.
  3. You will have to qualify with your current monthly debt and the new mortgage. The new mortgage debt will include principle, interest, taxes, insurance and any homeowners association fees.
  4. Avoid trying to secure financing for condominiums in Florida. Hopefully this trend will end in a few years. But currently condo’s are real hard to secure financing.
  5. Use a local mortgage professional like myself to help you with your financing. And most importantly , once you own the investment property I highly recommend you hire Karen Gunn Bardot and her team to manage your investment property.

I have been a licensed Mortgage Originator since 1997 and have helped many investors who were new to investing and those who are pros. I can say confidently, now is the time  to invest in real estate, the real estate opportunities are ideal to  expand and diversify your portfolio. . . and Brevard County is excellent choice.

Tim Horr  | Thomas Louis Mortgage | 321-698-0417 | tim.horr@gmail.com | TimHorr.com