What should I include in the contract before renting my Montana home?
If you have been contemplating the idea of renting your Montana real estate then it is a good idea to include some basic rules for real estate rentals in the lease. The following are useful tips and ideas on things to consider before allowing renters into the home.
1. Pet Policy. A pet is only as good as the owner. Make sure all vaccinations and tags are up to date, obtain copies of veterinarian reports and meet the pet in person before making a final decision. Pets can cause a great deal of destruction to a home so think twice before allowing pets.
2. Responsibilities. Clearly define who is responsible for maintenance, repairs and other common situations like yard work or changing air filters. Think twice before making tenants responsible; a small bill can quickly become much larger if they fail to perform routine maintenance.
3. Restrictions. Provide a copy of the homeowners association or deed restrictions for the community in advance. It is also a good idea to clearly include any specific restrictions placed on the use of the home or land; for instance, storing broken vehicles or "no pets" policy.
4. Terms. Specify due dates, grace periods, late charges and other relevant details in writing.
5. Verify. Check with state and local laws to make sure the lease is in accordance with requirements; for example, many areas place stipulations on grace periods or late charges.
6. Keep Copies. A lease isn't valid until it is signed by both parties. Keep a copy in your records for future reference.
7. The Fair Housing Act. Understand the Fair Housing Act and how it applies to your real estate rentals. For more information visit www.hud.gov/local.
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What is double dipping and how do I prevent it?
When buying Montana new homes or pre-existing Montana homes for sale, there is a high likelihood you will use a mortgage to purchase the property. Learn how to save thousands of dollars by spotting double-dipping with these quick tips:
1. Read the Real Estate Contracts and Paper Work. Yes, we all know there are a lot of forms to fill in but they are there for your protection. Take time to carefully review everything before signing.
2. Right to Know. The Consumer Law Center encourages home buyers to demand to know how much the broker is making from the lender in addition to the fees you are paying them. Over the past few years many brokers have "double dipped" to make fat profits from lenders and borrowers. Get it in writing and don't pay twice.
3. Read RESPA. RESPA or the Real Estate Settlement Procedures Act requires lenders to provide information on closing costs and escrow accounts as well as business relationships that exist between the lender and closing or title services. Understanding relationships provides better tools for negotiations of many junk fees and shopping for better rates. Don't be bullied into going with a specific provider simply to line their pockets.
To learn more or obtain help when dealing with mortgage brokers that double-dip, contact the National Consumer Law Center at www.consumerlaw.org.
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Real Estate Foreclosure Tips or Tricks?
As the numbers of real estate foreclosures escalate so do the rate of tips, tricks and outright frauds pretending to provide valuable knowledge - for a fee. Learn how to spot foreclosure fraud and obtain valid information on buying real estate foreclosures with these quick tips:
1. Pay to Play. Many websites, newsletters and so called experts promise you the "inside scoop" for finding the best foreclosure sales or pre-foreclosure listings for a hefty fee. The fact is free foreclosure listings are available through most county Clerk of the Court offices.
2. Special Systems. Entire armies of so-called Guru's are popping up everywhere to teach special systems on how to obtain financing to purchase foreclosure listings. The fact is a real estate foreclosure home typically requires a mortgage and is subject to many of the same financial programs that other homes sell for. Short sales are possible only with bank approval and special mortgage incentive programs typically require specialized guidelines including owner occupant, down payment requirements and other stipulations.
3. Repairs & Renovations. Yes, it really is possible to purchase Montana real estate for pennies on the dollar via a foreclosure sale - but the sale price alone rarely tells the full story. Many foreclosed homes require extensive renovation, payment of back taxes and liens, repairs and other costly investments. In some cases, the homes may not even have a valid Certificate of Occupancy; changes in building codes, insurance and other issues may make it most cost effective to bulldoze the home than bring it back to code in order to qualify for the COO. Unless the land alone is valuable, be sure you aren't assuming a huge liability. Always ask for full documentation on the total cost of repairing and renovating the home, back taxes and other financial costs in addition to the selling price.
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Is Montana real estate dropping in price yet?
While most of the nation seems full of bad news when it comes to real estate, Montana new homes and pre-existing Montana home sales might be the exception to the rule. According to research, Montana real estate sales continued to appreciate in value through 2007. In fact, according to the Office of Federal Housing Enterprise Oversight (OFHEO), Montana real estate came in 4th out of all 50 states in the nation. So, what does this mean for potential home buyers and sellers? Keep reading for a few quick trends to keep in mind when listing Montana homes for sale.
1. Separate the Data. While prices may have continued to increase, the number of homes on the market has also continued to increase. Sales are slower so expect it to take longer to sell a home.
2. Price Right - Not High. Don't over price a home with the expectation that buyers will negotiate; they may simply keep walking. Price right to attract interest and then negotiate by using other important factors such as down payment, terms or other strategies.
4. Taxes & Insurance. Price appreciation means little relief for increased taxes and insurance. If you believe prices have gone down then it is possible to request a variance or hearing to determine if your property is entitled to a reassessment but don't count on it. The majority of variance requests are denied especially when property continues to appreciate in value.
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What Happens if Your Mortgage Company Defaults?
By now everyone is familiar with consumers defaulting on their mortgage but many Montana new home owners are beginning to wonder what happens if a mortgage company goes bankrupt. Potential buyers are afraid of doing business with brokers or banks they don't know out of anxiety things could go wrong. Here is the simplified version of what happens and steps to take to protect yourself.
1. Don't Worry. It isn't a lot different than when a mortgage loan is sold. The mortgage itself is an asset that will be transferred to whatever bank or agency becomes responsible for servicing the finances of the bankrupt bank or mortgage underwriter.
2. Keep the Documents. In the event of a mortgage or bank default, you will receive information about the transition as well as instructions on where to send payments, account information and other pertinent documentation. A few weeks later you will receive similar information from the new company confirming the same information. Always verify this information by logging into your current account to avoid becoming the victim of identity theft or other fraud.
3. Make Copies. Although rare, there are instances where payments get lost in the shuffle so it is a good idea to keep copies of all payments, account history and transactions before, during and after the transition.
4. Changes. Once the transition is complete, be sure to update your insurance, tax information and bank details with the new mailing address, account numbers or other changes.
5. Details. The details of your loan should remain exactly the same as prior to the transition; due dates, PITI amounts and other basics are part of the original contract do not change however, bounced check charges or financial charges related specifically to doing business with the new provider might. Be sure to understand the details and plan according.
6. No Free Ride. Sorry, for those of you hoping to own a home free and clear the easy way - it simply doesn't work that way.
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How tdo IHandle Consumer Complaints Related to Real Estate?
Mention consumer complaints and most people think of financial concerns, communications problems or even faulty repairs but as houses go high tech, the number of products placed into service has given rise to increased levels of consumer complaints related to Montana real estate.
Montana new homes and pre-existing Montana homes for sale are all subject to potential problems. A few common examples include:
- Warranty agreements for appliances, roofing, siding and even plumbing.
- Recalls and manufacturing defects including circuit breakers, pipes and other products.
- Service and repair disputes ranging from carpet cleaning to major renovations.
1. Document. Record the dates, keep receipts and fully document all information related to the problem including who you have spoke with and when. Photographs can be helpful as well.
2. Submit. Put the complaint into writing and allow adequate time for the company to respond. Don't just complain - be sure to mention what you expect in return. For example, a replacement or repair by a specific date.
3. Follow-Up. After allowing at least ten business days (or more during holidays), follow-up via phone or email on the resolution of the issue.
4. Escalate. If the problem has not been resolved then it may be time to escalate the complaint to those higher up the corporate ladder. Try these resources to locate the appropriate consumer complaint departments for almost any company located in the United States:
SOCAP or the Society of Consumer Affairs Professionals : This professional organization is committed to address the concerns of consumers and promote customer satisfaction. SOCAP retains a large listing of contact information for member organizations and corporations. For more information visit www.socap.org .
Library Research Resources: Although these might require a little trip to the local library it might be well worth the time and effort. The following provide information on services, product manufacturing, professional organizations and other pertinent information designed to find the correct contact capable of handling any consumer complaint.
- The Standard & Poor's Register of Corporations, Directors and Executives
- Trade Names Directory
- Standard Directory of Advertisers
- Dunn & Bradstreet Directory
- The Thomas Register of American Manufacturers
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What should I know before using free real estate forms?
When it comes to purchasing free real estate forms there are a few questions every consumer should keep in mind. Learn how to protect yourself and avoid costly mistakes when buying or selling Montana real estate and using free real estate forms.
1. Is the form up to date?
2. Is the form specific to the laws of Montana?
3. Is the form in a recognized format?
4. Does the form represent the needs of the buyer and seller?
5. Does the form comply with proper real estate contractual obligations, rights and laws?
Free real estate forms can be a great bargain especially for routine task and general formalities; just be sure to understand the benefits and limitations. Search for reputable vendors and state specific forms.
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