Here in the Pleasanton Real Estate market a lot of people are in a very sticky predicament. They have lost their home to foreclosure, short-sale, bankruptcy, or a combination of those scenarios. They are now faced with a dilemma of not only trying to find a home to rent, but trying to do that with a very messed up credit. Some of the problems on the credit report could range from late payments, to collections, to unpaid credit cards,unpaid mortages and more.
Typically when a person completes an application to rent a home they pay a ’screening fee’ and authorize the landlord or a property management company to run a credit check. Some management companies also check for previous rental history (eviction) and criminal background as well. But, just because someone has less than stellar credit does not mean they will not be accepted as a renter. It really depends on the circumstances.
If a credit report shows that a person has a long history of consistently being late in paying all of their bills, are over extended on their credit lines, has multiple unpaid accounts or collections, and barely makes enough income to cover their rent, they will probably not be an acceptable rental candidate. On the other hand if the credit report shows a strong consistent payment history on most of their debts, unpaid or late items can be attributed to an isolated time frame during which a foreclosure or job loss occurred, the person can show verification of income, and they can show their income to be 2 to 3 times the amount of their rent, then they are in a better position to be considered an acceptable candidate.
Keep in mind it is up to the discretion of the landlord or property manager to make the final decision, but most of the time landlords or managers are willing to work with prospective tenants on these issues. It is always best to be open and honest about these potential credit issues before the rental application is submitted. Explaining the situation to the landlord/manager and having the discussion up front can help the prospective tenant determine their options before they get too far along in the application process.
In some cases the landlord or manager could require additional security deposits, but the deposits are limited to the amounts allowable by law (in California that amount is 2 times the monthly rent).
Its been just over a week since I last updated on the short sale saga. As of my last post, January 28th was the target date for the ‘valuations’ phase to be completed. Well that date has come and gone with no movement at all. The only good news is that an appraiser contacted me at the end of last week to schedule an appointment for the appraisal. We scheduled for today at 10am. This morning at 8:15 the appraiser called and the appointment was rescheduled for tomorrow. According to the appraiser, the bank has a deadline of 7am on Thursday to receive the appraisal, so I am hoping it gets completed tomorrow. This is needed to complete the ‘valuations’ phase of the process (you know, the process that was supposed to be completed by the 28th!?)
In the meantime, my sellers have been getting bombarded with letters from other agents advertising their services to list the home. Along with the letter comes a printout from ForeclosureRadar.com showing the Projected Sale Date on the property of less than a week away. Of course my clients freaked out a little; the bank has never notified of a sale date. I contacted Foreclosure Radar and was advised they pick up the information based on the Notice of Default (NOD) date. Their system automatically enters the Projected Sale Date based on the time allowed by California Law which is approximately 120 days from the NOD date. Other real estate companies cruise these sites looking for potential foreclosures in the hopes of swooping in a picking up a short sale before the foreclosure process is complete.
I verified with the bank that we indeed had no sale date issued. The negotiator assured me that the valuation phase will only take 7-10 business days then will be moved on to the negotiator (again, what happened to January 28th??). Once this file goes to the negotiator the process moves relatively quick. So they say……………
So you’ve decided to enter the wonderful world of Pleasanton Real Estate and buy a home! Your agent writes a purchase contract for you which includes a box checked that says “Buyer shall pay for owner’s title insurance policy specified in paragraph 12E.” What exactly does this mean?
Title insurers, unlike home & auto insurance companies, operate under the theory of risk elimination. Title companies spend a high percentage of their operating income collecting, storing, maintaining and analyzing official records for information that affect title to real property. This is needed to identify the rights that others may have in your property, such as recorded liens, legal actions, disputed interests, rights of way or other encumbrances on your title. Before closing the purchase transaction, the title company will proceed to clear those encumbrances which you do not wish to assume.
Most other insurance companies (medical, casualty) base their rates and anticipated losses on studies and the premiums are pooled on the assumption that a certain number of claims will be made. Premiums are paid to insure against an unpredictable future event, and premiums are collected on a regular renewal basis. Title insurance premiums are paid to identify and eliminate potential risks and claims beforethey happen. Title insurance involves a one-time premium paid when you close a real estate transaction.
The title company will conduct a thorough search and evaluation of public records to insure that no claims ever arise. However, human error can occur and legal interpretations make 100% risk elimination impossible. If a claim does arise, a professional will be assigned to handle the claim according the the title insurance policy.
A library of title records are maintained in facilities knows as title ‘plants’. These plants house records that can date back to over a hundred years. Each day recorded documents that affect real property and property owners are posted to the title plants. When a title search on a particular property is requested, the information is organized for quick and accurate retrieval. In California, records in most large counties have been converted to computer-based title plant systems which provide retrieval from remote locations. This allows faster delivery of the title search results to the customer. This investment in skilled personnel and advanced data processing represents a major part of the title insurance premium dollar.
That is where most of your dollar goes and that is the source of your protection and pease of mind as a homeowner.
I’m about to catch you up to the current day on my short sale story.
I noticed this morning on the online tracking system that the negotiators name had been changed from “Generic Negotiator” to an actual persons name, complete with an email address! Naturally I fired off an email with many questions. I am sure I will not get a response, if I do I will be very surprised! So I then called the short sale department. I was advised that the first negotiator (Generic) had completed their Valuations review and sent it to a second negotiator (the one named on the system) for review. Apparently the file can go to up to three negotiators for Valuations review. The good news (I think) is that the Valuations task has a system completion date of January 28th. Now, that only means they are supposed to have the task completed by then, doesn’t mean they will, but its a target date – which I like 
Today, it feels like we’re getting closer to success!
Stay tuned for the latest and greatest as the saga continues………………
Its January 12th and I’ve been checking the online site daily for new tasks and none have been issued. I call the bank to get an update and am advised that all tasks are complete on my part but the (elusive & unamed) negotiator has an outstanding task that was due to be completed on January 9th. This rep emails the negotiator while I am on the phone to request the task be completed so we can move on with the process. The rep advises the task should be completed in the next day or so. The rep also advises that with this online system the short-sale process takes no more than 45 days to close provided all parties submit their required tasks ON TIME. So I guess that means we are already delayed 3 days since the negotiator is late with their assigned task.
January 15th -The negotiator should have completed their assigned task by now so I call for an update. Oh huge surprise, the task is still incomplete. The rep today tells me an email has already been sent, to the negotiator so we just have to wait. The negotiator will get to it as soon as they can…………(heavy sigh).
Facebook
LinkedIn
Twitter