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Lots of people rent out their houses, and I suspect few, or none, send notices to the people who're servicing their mortgages. Nor do I think they care, so long as the monthly check comes in. ...
Mortgagees do care - if you don't think so talk to my clients who did not advise their mortgagee that they'd vacated the premises and had rented it to a third party. They came in to see me when they received default notices based on that activity.
You want to get a real estate attorney involved on this one and probably a cpa also, basically you're turning your home into an income property as you'll no longer have it as your primary residence, therefore your homeowner's exemption will be gone, plus you'lll probably be looking at capitol gains on it..definitely need to ask a professional whose up on these items as well as getting a contract that protects you.
I have a suggestion dr mike. What everyone here is saying is true you need an attorney to write this up, if you or the tenent are not willing to pay for that, then lease it to them and revisit the sale in 12 months.
First, thanks for all these helpful replies. I really appreciate them.
I looked up my mortgage, and it does have a clause like this:
Quote:
If all or any part of the Property or any Interest in the Property is sold or transferred...without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument.
And, defining that:
Quote:
"Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser.
I know, I will show this to my attorney. But does this language include a rent-to-own? My non-professional reading of it would say that it probably does. I assume it's included under "the intent of which is the transfer of title...at a future date".
Meantime, I also assume that it's entirely okay for me to rent the house out normally, just not as a rent-to-own. Again, I'll check with the lawyer, but do you think I'm assuming correctly on this, too?
You want to get a real estate attorney involved on this one and probably a cpa also, basically you're turning your home into an income property as you'll no longer have it as your primary residence, therefore your homeowner's exemption will be gone, plus you'lll probably be looking at capitol gains on it..definitely need to ask a professional whose up on these items as well as getting a contract that protects you.
Thanks - I do know that I can rent it out for only up to two years before losing the capital gains exemption upon selling.
Here's my dilemma. Two or three agents call each week to show the house, so there is interest and I think that's a clear sign that it is priced well. But so far, no buyers, and the house has been on the market since last June.
On the one hand, spring buying season is starting, and I would prefer to sell if I can.
On the other hand, I have a few rental leads, two active and one initial. One tenant wants a year lease and may want to stay after that. One wants a three year lease.
Do I go with the rentals now to cover the mortgage? Do I hold out for a sale instead?
Maybe if I rent for several years, even though I lose the tax exemption upon a sale, the market picks up again and I sell at a higher price, more or less a wash with the tax loss?
On the other, other hand, as I said, I'd really prefer just to sell and move on. We already have another house and have moved away.
I would reconsider renting. We rented a house and a condo. We vetted the tenants but all three of the families stuck one you know where. One even left with three huge tiles missing on the roof. The next family had us over there every other day for nonexistent problems. The condo renters cost us $35,000 (about what the condo was worth). They were such a polite, quiet family but they were the renters from hell. They even poured cement in the drains!!
All three of them we treated like we would like to be treated - but it was to no avail. I'll never rent again.
Before posting at the tag end of a thread... look to see how old it is first.
In this case the last post was almost FOUR years ago.
hth
I sure wish CD would just lock old threads so that (however well meaning)
newbies can't bottom post their out of context questions or add 3 year late comments
Read the old threads? Absolutely.
But when the attempt is made to quote or post a quick reply... don't let it work.
Instead they can get a polite message advising the newbie about the age issue and suggesting
that they find a newer thread to bottom post onto (ha!) or point them to a "new post" button.
Have a sliding scale so the busier and longer threads can stay active longer...
but PLEASE shut them down the rest at some point.
less than 10 posts? close and lock after X weeks of inactivity
less than 30 posts? close and lock after Y weeks of inactivity
less than 50 posts? close and lock after Z weeks of inactivity
and so forth...
A realtor is a waste of your time in this case. Your best advice will come from a CPA or your accountant and your lawyer.
Your accountant should be able to advise you on profit potential, taxes considerations and how you can structure the effort to make it work from a business perspective.
Your lawyer can work out the contracts to implement the best business proposition for you based on working with your CPA or accountant.
Realtors are not qualified to write contracts nor interpret them.
Before posting at the tag end of a thread... look to see how old it is first.
In this case the last post was almost FOUR years ago.
hth
I sure wish CD would just lock old threads so that (however well meaning)
newbies can't bottom post their out of context questions or add 3 year late comments
Read the old threads? Absolutely.
But when the attempt is made to quote or post a quick reply... don't let it work.
Instead they can get a polite message advising the newbie about the age issue and suggesting
that they find a newer thread to bottom post onto (ha!) or point them to a "new post" button.
Have a sliding scale so the busier and longer threads can stay active longer...
but PLEASE shut them down the rest at some point.
less than 10 posts? close and lock after X weeks of inactivity
less than 30 posts? close and lock after Y weeks of inactivity
less than 50 posts? close and lock after Z weeks of inactivity
and so forth...
Is that really so hard?---
A lot of these old threads are relevant today. If a thread is locked, so then is any new information or discussion. If we all think the sum of knowledge and experience on matters stop at a certain date or time, I'm all for that. I think it works different though. Besides, it harms no one.
The question is whether tag end comments made long after the topic has been exhausted...
(and another 100 or 1000 threads on the same topic have begun) are relevant.
Are these relevant comments best presented in this manner?
If the new poster has something relevant to contribute (and some do)...
it does these people a disservice to not have that presented on it's own.
Lets make it easy for newbies to do that.
Quote:
If a thread is locked, so then is any new information or discussion.
No it isn't.
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