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Behind on your Mortgage?

I sat with an older couple last month who sadly informed me that they were losing their home.  They were both recently divorced and tried to make it on  one income, but after time it caught up with them.  As I sat with them, I asked many questions trying to help them get caught up with the payments.  We called the mortgage company together, but they were too far behind to catch up.

After a lengthy discussion, we all agreed that the best outcome was for them to allow me to take over the payments and keep them in their home.  They could not afford to move and start over and they didn’t mind paying rent.

I often ask myself, “If someone is behind on payments, why don’t they just put the house up for sale?”  When I asked them this, they answered, “We don’t want to move.”  I assured them that as long as they were able to meet the rental payments, I would keep them in their home.  Because I did not have to buy the house at auction, I was able to keep the rent low enough for them to afford.

This couple was in their late 70’s and they did not want the pain and inconvenience of moving out and starting over.  I explained to them that if I had not sat with them that day, the bank would have taken over and they would have been forced to move or worst, an investor like myself would have bought the home at an auction and likely would have had to charge more for rent.

This particular financial agreement is just one of many that I have entered into in order to help others stay in their home.  Not always is it a happy ending, but in this case it was.

If you know someone who is behind on mortgage payments, please have them contact me.  It must be a win win for both parties and many times it’s a great way to keep someone from losing their home that they love.

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What to Look for When Renting

As a successful landlord for nearly 20 years, I can promise you that not all rental properties are created equal.  In fact, I am probably more picky about who rents my property than I should be, but it yields me a longer tenant who I absolutely enjoy renting to.  Here are a few questions that you need to ask when renting and important things to look for.

Q. How long have you been a landlord and how quickly do you fix a problem when your tenants have one?  

When something happens to one of my properties, it’s important to fix it immediately.  After all, it’s my property.  I also believe that when a landlord fixes a problem quickly, the tenant takes better care of the place.

Q.  Do you offer discounts on rent when it’s paid early or if I maintain the lawn?

This is a great question because there should always be an incentive on paying early.  As far as the lawn is concerned, it’s a win win here!  You want to live in a well maintained home and I don’t want to cut the grass.  It’s a great question to ask!

Q.  Can I have pets? 

This is one of the most common questions and as much as I wish I could have pets, my insurance does not allow it.  You should still ask!

Q. Is the deposit refundable? Know the terms of your security deposit – where it’s held, if you get interest on it, and if any portion of it is non-refundable. Go through a pre-move-in inspection with your landlord, take photos, and sign off on the conditions of the unit.

Here are a few other things you need to consider before signing on the dotted line.

– If the property is shared with other families, ask if you can contact the others to find out about noise factors or any other questions you may have.

-Find out if your landlord is caught up on all mortgage payments.  There is nothing worst than you signing a lease and finding out the property is going into foreclosure and you have a new landlord stepping in.

-Ask about parking, amount of cars allowed and general maintenance issues.

-Ask about hurricane season.  Who is responsible for boarding up and things like that.  As an owner of over 50 properties, that is a lot to keep up with.  It’s helpful if my tenants help pick up outdoor furniture and help board up.  We both have an interest in having something to come back to.

-Ask your landlord how often the locks have been changed.

These helpful tips are just a start.  A good rule of thumb is to be honest and open about yourself and ask lots of questions to get to know your landlord.  If you have additional questions, feel free to email me!

Thanks,

Nick Brocato