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I spoke with an attorney about it. He said it isn't law yet, that it passed the senate as an original and then Kerry added on the addendum. That means it has to go back to the House and once they ratify the addendum, it's in.
What it means, according to the attorney I spoke to, is that it goes retro for any fanny/freddie loans and then is applied to regular bank forclosures from the date the law goes into effect. He is thinking there will be lawsuits that will clarify things for everyone.
What the law basically states is that a genuine lease (not a month to month or verbal) has to stay in effect until the end of the lease *unless* the person purchasing the property is also going to live there.
At that point there is a 90 day notice for the tenant to vacate. The lease can not be modified to lengthen the stay, so forget those ideas olecapt. It would be fraud. But, I wouldn't be surprised if people start doing longer leases from the get go. This has to do with banks taking properties back and the kick of date is when the bank actually gets the property back which can sometimes be longer than 10 days from court order or sale at the steps. This is why investors need to be very careful.
He also states there is NO FREE RIDE for the tenant. In otherwords, just as they legally have to do now, which is PAY THEIR RENT, during the short sale or foreclosure process, they will have to pay their rent to the bank....which will probably be going through management companies.
Management companies that are presently holding security, according to this attorney, will have to return the security to the tenant *unless* there is an order from the court or similar authority telling them to do otherwise.
Should be interesting. I suspect we're going to see a lot of cash for keys to tenants in the future.
I spoke with an attorney about it. He said it isn't law yet, that it passed the senate as an original and then Kerry added on the addendum. That means it has to go back to the House and once they ratify the addendum, it's in.
What it means, according to the attorney I spoke to, is that it goes retro for any fanny/freddie loans and then is applied to regular bank forclosures from the date the law goes into effect. He is thinking there will be lawsuits that will clarify things for everyone.
What the law basically states is that a genuine lease (not a month to month or verbal) has to stay in effect until the end of the lease *unless* the person purchasing the property is also going to live there.
At that point there is a 90 day notice for the tenant to vacate. The lease can not be modified to lengthen the stay, so forget those ideas olecapt. It would be fraud. But, I wouldn't be surprised if people start doing longer leases from the get go. This has to do with banks taking properties back and the kick of date is when the bank actually gets the property back which can sometimes be longer than 10 days from court order or sale at the steps. This is why investors need to be very careful.
He also states there is NO FREE RIDE for the tenant. In otherwords, just as they legally have to do now, which is PAY THEIR RENT, during the short sale or foreclosure process, they will have to pay their rent to the bank....which will probably be going through management companies.
Management companies that are presently holding security, according to this attorney, will have to return the security to the tenant *unless* there is an order from the court or similar authority telling them to do otherwise.
Should be interesting. I suspect we're going to see a lot of cash for keys to tenants in the future.
Not quite...your attorney pays less attention than I do...From good ole Thomas...
And the lease certainly can be modified. Just got to do it before the fit hits the shan. I see nothing that prevents the LL and Tenant from negotiating a new lease right around the time the LL stops making his payments. Maybe a signing bonus to the LL followed by 75% rent and a five year lease. Having read the law sounds quite feasible.
Looks to me like the 90 days is in period. I don't understand all the technical languge though so maybe just on some mortgages.
Interestingly enough in this afternooon mail is a note from the Brokerage guy with big headlines waring everybody who is doing REO listings to go read a blog page on the new law. Warns that the local courts don't know what they are doing yet and to be very careful.
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