Renting a property that is being sold. What happens next?

Tu Casa

By Nathalia N. Cruz-Edmonds

The market to buy a home is “sizzling” hot but for some reason you cannot do it at this time therefore you are renting.  You have lived inside your home for about a year and a couple of months and you love it.  Out of the blue, the owner asks to enter the property to do an inspection the next day.  The owner and other people enter your home, they tour the home and they leave.  A couple of weeks later you get the notification that someone new owns your home.  Now what?

In the state of Maryland, each county deals with a resale of an investment property differently.  But if you are living in Baltimore City, the owner of the home has to provide you with a “Baltimore City Exemption of Tenant’s Right of First Refusal”.  This form must be sent to you via certified mail within forty-eight (48) of the home going on the market.  Why do REALTORS have to do this?  Because in the government believes the Renter must be given a fair chance at buying where they currently live.  It gives a fair advantage to everyone, specially those who are currently living inside the property.  This form also provides the name, address and phone number of the Baltimore City Department of Housing and Community Development which can help you by providing you with information on how to buy that or other homes.

If you haven't’ received this form and you know the property you live at has been sold, please contact the Maryland Real Estate Commission.  They are located at 500 North Calvert Street 3rd Floor in Baltimore.  You can also call them at (410) 230-6230.  You may also visit their website at http://www.dllr.state.md.us/license/mrec/.

What happens if the Listing Agent did send the form and you decided to not buy the property?  There are many scenarios.  The Good Scenario is when the new owner decides to keep you as a tenant with the same terms.  Meaning, same rental price and same lease dates.  Perfect!  Have a new lease signed with the new owner and get the address of where you can make your rental payments.  Read your lease agreement well and ask questions if you do not understand.  If you paid a Security Deposit, you DO NOT need to pay a new one.  The Security Deposit must have been given to the new owner as part of the sale.

The Bad Scenario is when the new owners decide to let you complete the lease but provide you with a sixty (60) day notice to vacate sixty (60) days before your lease expires.  There is no law that protects you against this.  This is every landlord’s/owner’s right to do when the lease is about to end.  The Ugly Scenario is when the Landlord/Owner decides to file a “Wrongful Entry & Detainer”.  Unlike the “Tenant Holding Over” which is done after a tenant stays inside the property after the scheduled move out date, the Wrongful Entry & Detainer the new owner does NOT want any residents inside the property.  The Wrongful Entry & Detainer as well as the Tenant Holding Over work just like an eviction for failure to pay rent.

The Landlord or Owner must go to the District Court and fill out the proper documentation and pay a fee.  The Clerk’s Office then accepts the request, which is a lawsuit, and schedules a date.  A copy is sent to the house in question stating which date the case is.  The court might send the court date in the mail or the Sheriff might tape it to the door.  Once the court date arrives, if you do not show up because (1) you forgot or (2) you never got the notice, that will be in your disadvantage.  Some procedures provide you with a four day appeal but a judge still has to approve it.  Once the judge approves the judgement to have the request from the Landlord or Owner to remove you from their property the case will be transfer to the Sheriff’s office.  To get a date as to when the Sheriff will knock on your door and ask you to leave the premise can take up to an additional four (4) to six (6) weeks.  When the Sheriff knocks on your door, he will ask you to take your most valuable possessions and immediately leave the premises.  The new Landlord or Owner will then change the locks to the house.  If you  have furniture and clothes inside, in Baltimore City you will lose everything once the Sheriff ask you to leave the home.  In other counties the Landlord or Owner will bring people to remove your items for you and place them in the curb.  After twenty-four (24) hours have passed the Landlord or Owner can place any items in the curb inside the trash can.  Please seek legal advice if any of these two forms have been given to you.

Nathalia N. Cruz-Edmonds is a REALTOR with Berkshire Hathaway HomeService PenFed Realty.  To schedule a meeting call at (410) 350-5848, or at her office (410) 464-5500 or via email at nathalia.edmonds@penfedrealty.com.  To learn about available properties or read her blog please visit http://nathaliaedmonds.penfedrealty.com.  She is also the owner of Clearview Real Estate Management LLC a third party real estate management company in Maryland for more information visit http://clearviewREM.com.

I found the house of my dreams, when can I move in?

I found the house of my dreams, when can I move in?

By Nathalia N. Edmonds

You got your mortgage pre-approval letter and know how much you can spend to buy your new home!  If you qualify, you attended the First Time Homeowner seminar.  You hired an agent and you know what type of home you are going to buy.  Now what?

Is there a limit of how many homes you can see?  No.  Should you see 100 houses versus 10 or 3?  You see as how many houses you want to see.  I tell my clients that the house you want to make yours is the house that made your heart fluttered when you entered.  Or like my mother, she heard bells and felt an overwhelming sense of peace.  A great way to take control of which houses to see is when your agent sends you daily automated emails which will alert you when a new home becomes available!  Those emails are up-to-date and with correct information.  Looking at properties in Zillow, Trulia or Redfin do not have accurate information.  In Maryland, agents pay the Metropolitan Regional Information Systems or MRIS to see all the accurate information of properties that are actively available, under contract, sold even those properties that are withdrawn.  Trust is a very important aspect of your relationship with your Agent.  Remember, if you feel your current agent is not a good fit, you may cancel your business relationship and hire someone else!  Make sure to read your agreement first.  In the state of Maryland it is mandatory to place a contract expiration date as well as instructions on how to cancel your contract with the agent and broker.

Now, you found your home but not just your new home, you found YOUR DREAM HOME!  With your approval, your agent will write an offer on your behalf.  A contract will be about 47 pages long.  It could be less or it could be more.  In this contract you will let the seller know how much you are willing to pay for their home.  How much deposit you will pay, where you will deposit that money, how you will pay for the home, if you are doing any inspections, what you want to keep from the house, acknowledge the settlement date, amongst other things.  Other things will be acknowledgement of age of the property and possibility of lead, and all kinds of disclosures depending on county and type of home you are buying, especially if the neighborhood has a Home Owner Association.  In your offer, you will have dates of when you are due to do the inspections, when to apply for your mortgage loan, when you are going to settlement!  With the offer you will need to submit your mortgage pre-approval letter and your earnest money deposit.

What is the earnest money deposit?  The EMD or escrow money, how some agents call it, is a “good faith payment” it shows the seller that you are serious about buying their home, soo serious you are willing to put money down.  This amount it is usually 1% of the sales price or 10% if you are buying the home in cash.  So if you are offering $100,000 to buy their home, you need to prove a check or money order in the amount of $1,000.00.  This EMD will only be deposited ONCE your offer is accepted by the seller.  This money will be applied towards what you need to pay to get your home, meaning, you will now have to pay $99,000 plus closing costs.

Once the seller receives the offer, he or she will evaluate the offer or several offers and make a decision.  Do not be alarmed if your agent calls you back with a new offer from the seller.  Your agent will have your best interest and inform you of what are the best choices.  But remember, you are the only person who will make the decision.  Agents are advisors and messengers.  A good agent will email you the instructions you gave them over the phone for both your records.

Immediately after your offer was accepted by the seller you MUST contact your loan officer and start your application process.  If you already got “pre-approved” why do you need to apply?  Well, the loan officer creates your file and starts getting you formally approved and get the house appraised.  They make sure you didn’t go nuts and buy a boat or got into more debt.  The underwriter also schedules the appraisal to make sure the home is good collateral for the loan.  This process could easily take about 30 to 40 days.  It is important that YOU are as responsible to close early.  If you delay giving your loan officer all the documents he/she asks, you will delay the process.  Once the appraiser returns their findings and the home is good collateral, you will get approved or denied for the loan.  BUT BE AWARE, the underwriter will check your credit the day before or the day of the settlement and approve the loan!  Buy furniture AFTER settlement NOT before!

Simultaneously, your agent will schedule all the inspections.  You should ALWAYS do a structural and mechanical inspection.  This inspection MUST be done by a Licensed Home Inspector.  You can go to https://goo.gl/x0Ic5h and search if that person is licensed!  Inspections could run you about $250 up to $500.  You can also do Lead, Mold, Termite, Radon, Chimney and others.  The buyer will ALWAYS be responsible to pay for the inspections!  And don’t forget to go to the inspections!!

Around that same time, you would have to pick a Title company to help you investigate if the property has any issues with the past ownerships or any debts due to unpaid taxes, water bills or any other liens or debts against the property.

After all these things are done, you should expect to close between 45 days or 60 days and this is only if you are asking for money!  If you are paying your future home in cash, closing will happen in about 45 days.  At settlement, you must make sure you bring the check you need to pay, if any.  If you are a first time homeowner you could get $5,000 towards closing cost and you could have ask the seller for 3% closing cost help, which in some cases, you don’t need to bring anything.  Bring your ID!  Your loan officer will have given the title company their bank information to wire the money to which the title company will pay the seller’s mortgage and give him or her the difference in a check.  The sellers will bring the keys to your future home.  After signing the new title, the receipt or HUD1, you get your keys and the seller gets their check and you go home to your new home!

If you would like to learn more about the process in buying your future home, please contact me or your preferred agent!  

Nathalia N. Cruz-Edmonds is a REALTOR with Berkshire Hathaway HomeService PenFed Realty.  To schedule a meeting call (410) 350-5848, at her office (410) 464-5500 or via email at nathaliaedmonds@gmail.com.  She is also the owner of Clearview Real Estate Management LLC a third party real estate management company in Maryland.

 

Getting ready to buy

Getting Ready to Buy

By:  Nathalia N. Cruz-Edmonds

With Daylight Savings starting on March 8 and the first day of Spring being on March 20th, thoughts of a new beginning start to really take shape.  Thoughts of moving is probably the first one specially because it is easier to move in warm weather than cold and it is easier to change school districts once the school year is over.  But, are you financially ready to complete this desire?

In the United States, having large amounts of cash stacked under the mattress only works in the movies like Scarface.  The reality is that cash needs to be in the bank not only because it is secured from being stolen(*) but because the Government demands it for tax purposes.  If your income is predominantly cash, you must start by opening a checking account and a savings account.  If you have an ITIN number, you are still able to open a bank account.  Usually to open a checking account, you need a government issued ID, and proof of residency whether is a copy of your lease agreement or a bill for cable, phone or utility.  Call your bank for more details.

Another big obstacle that you might be facing is lack of credit.  By definition credit is an arrangement for deferred payment of a loan or purchase.  This loan needs to be paid back, usually in monthly installments, until the balance is paid in full and sometimes you need to pay interest.  In the United States, credit is the second most important item in your financial health.  The easiest way to get credit is with a Secured Credit Card.  This credit card borrows money from an initial deposit you make when opening the account.  You can open this particular credit card with just $300.00, all banks have individual restrictions, therefore, you must call them directly to learn more about their product.  The purpose of this card is for you to use it no more than 15% of your available balance every month.  Meaning, if your available balance is $300.00 you cannot exceed $45.00 in purchases every month and then paid this used balance in full on the day your payment is due.  After a year the bank will return your initial deposit and the secure credit will convert into a regular credit.  The bank will be able to increase your credit and it will be easier to access more credit such as a mortgage!

Other ways of obtaining credit is by buying furniture, opening a credit card a major store like BestBuy, WalMart, Target, Macy’s or buy a car.  Please, do not go crazy.  Too much open credit will lower your credit score and if you do not pay your debts on time as agreed in the contract it will harm your financial credibility for SEVEN YEARS!  This means that once you start making late payments, have too many credits cards with high balances you will not be able to buy a home for SEVEN YEARS even if you paid your until your balances in full.

Finally, the first most important item of your financial health is a savings account!  You will need up to two months rent in order to move to a new place or minimum of $5,000.00 deposit if you are buying a home.  These amounts do not include the cost of moving from one home to the other.  When opening an checking account, make sure you are able to open a savings account.  Every time you get paid you should apply the 80/20 rule.  Ten (10) percent to save, Ten (10) percent to give to charity and Eighty (80) percent to pay your expenses  Having savings will also help you in a time of need such as losing a job due to weather, your car breaking down, or God forbid, paying a medical bill for yourself or a loved one.

Financial freedom is the ultimate goal which can be achieved by buying your home but in order to buy your home you must must have good financial health by having savings and good credit.  There is no better time than now to start!

Coming Soon!  PS International Team of Berkshire Hathaway Homesale Service will be representing the owners of newly remodelled houses in Essex (11 Helena Ave, Essex MD 21221) and in Dundalk.  Information will be soon available on www.pitinastucky.com.  If this is your first time buying a home, you must register to attend the First Time Homeowner Seminar at Southeast CDC on Eastern Avenue.  Visit http://goo.gl/28veRx to learn the next available date and register to attend the seminar.

Nathalia Cruz-Edmonds is a REALTOR with PS International Team of Berkshire Hathaway Homesale Realty and she is also the owner of Clearview Real Estate Management LLC.  To speak to her you can email her at nathaliaedmonds@gmail.com or call her directly at (410) 350-5848 or the office (410) 583-0400.  Visit her website at www.clearviewrem.com.

(*)To learn more about how banks in United States guarantee to secure your money please visit https://www.fdic.gov/deposit/deposits/

Going all the way! Million Dollar Style

So, one of my best qualities and also my worst is being ABRASIVE.

 

Men don't like it.  People that don't pay their rent on time don't like it.

 

But it has gotten me a job, fabulous connections that are now friends and a husband.

 

Therefore I am not changing.

 

I love watching Bravo's Million Dollar Listing New York, specially because of Luis D. Ortiz from Douglas Elliman.  He is Puerto Rican, very handsome and a real estate agent.  It's like me but the female version.  I love his passion, dedication and pursuit of the American Dream.

 

So that got me thinking, I wonder if the Maryland Hispanic Business Conference has someone to be the keynote speaker.  And wouldn't it be FABULOUS to have Luis D. Ortiz to be that person?

 

Another fantastic quality of mine is research.  I went to the Douglas Elliman website and BAM!  With my abrasiveness, I emailed.

 

With in minutes I got a CALL from a lady that works with him.  Stating "Luis wanted me to call you and let you know of his speaking fees."  Mind you, I was on the other phone speaking to a client of mine.  So, I put my other client on hold and I speak to Luis' representative.  I let her know I am a board member for the Maryland Hispanic Chamber of Commerce and we are involved with the annual Maryland Hispanic Business Conference that is scheduled for Tuesday September 2nd in Bethesda Maryland.  She said she will email me her contact information in the event the board decides they would like Luis to be our keynote speaker.

 

I felt like I was back at a Menudo concert in Bellas Artes, San Juan Puerto Rico. 

Screaming my lungs out.  Jumping uncontrollably.  Counting my blessings.

 

There you have it.  Don't just dream it. Plan it.  Execute it.  Live it!!

 

There is NOTHING TO FEAR, for you and I have Jesus Christ to strenghtens us!!!!!

 

I will soon reveal what EODG means!!