[Effective Demand]

[quote=CA renter]Sounds like you’re going to be okay, Doublewide. Nice!

I agree with Effective Demand. That is a GREAT strategy.
—————

Effective Demand,

Would you mind posting a copy of your agreement here (with identifying material left off, of course), so that other renters could copy your idea? I think this is a very wise move on your part.[/quote]

Since the form was from the LL from a pay site I won’t post it here but I added the following clauses:

“Home will not be placed for sale or shown to prepare for sale during the rental term.”

“Any Notice of Default filed on the subject property gives the lessee an option to cancel the lease with 30 days notice at no penalty to the lessee.”

“If a Notice of Trustee sale on the subject property is filed no rent will be owed or accrue until the lessor returns the security deposit to the lessee.”

“The lessee, at their option, may cancel the lease with 30 day notice and paying a penalty equal to one months rent”

I am obviously not a lawyer, this is not legal advice, your mileage mary vary, etc.

They key in any negotiation with clauses like these is to explain why you would like them not just spring them out of the blue. If you are dealing with an owner just “trying to wait it out” over trying to pull a fast one they will get over any reservations they might have. Having impeccable credit and references helps a lot in getting the “fine points” through. If you have bad credit and the LL is taking a risk renting to you anyways it would be much harder to win any deal points.

What I did was present each clause and why I wanted it in the lease similiar to below. Clause #1, I don’t want to be a part of a home sale situation if you would like to sell during the lease we will have to work out an alternate arrangement. Clause #2, I generally don’t want to be part of a foreclosure situation but if there is true hardship I am not looking for an easy out. Clause #3, Protect my security deposit in case of a foreclosure situation. Clause #4, California law limits the damage in which the lessee has to pay by requiring the owner to re-rent the property at market rent and the lessee is on the hook for the difference and missed rent. I just want to put a box around the damage in case life events may cause me to move.

I also offered a longer term. I got all the above included in the lease. Clause #1 the first go and Clause #1-4 in the second along with a longer term.

The key is for me to be in the driver seat. If my LL needs to sell I won’t stand in their way but it will happen on my terms, not theirs. If they want to rent skim, I have the choice of leaving. If they are going to let the property go to trustee sale, I won’t have to go to court for my security deposit (well I COULD, but I’d take the free rent and call it even).

Also for any rental units I’d check the liens on the property if it is privately owned. If the place is underwater you will want to think about living somewhere else. Anyone with foreclosureradar type access can get you that, any agent can do the same. It isn’t perfect, it isn’t a chain of title, but it will give you the basic idea of what is going on with the property.

Edit: Just in case I wasn’t perfectly clear this is for investor or owner occupied properties only. Not corporate owned situations. I highly doubt they would modify their contract and so you just have to be comfortable with the terms as they stand in the contract.

[Effective Demand]

[quote=CA renter]Sounds like you’re going to be okay, Doublewide. Nice!

I agree with Effective Demand. That is a GREAT strategy.
—————

Effective Demand,

Would you mind posting a copy of your agreement here (with identifying material left off, of course), so that other renters could copy your idea? I think this is a very wise move on your part.[/quote]

Since the form was from the LL from a pay site I won’t post it here but I added the following clauses:

“Home will not be placed for sale or shown to prepare for sale during the rental term.”

“Any Notice of Default filed on the subject property gives the lessee an option to cancel the lease with 30 days notice at no penalty to the lessee.”

“If a Notice of Trustee sale on the subject property is filed no rent will be owed or accrue until the lessor returns the security deposit to the lessee.”

“The lessee, at their option, may cancel the lease with 30 day notice and paying a penalty equal to one months rent”

I am obviously not a lawyer, this is not legal advice, your mileage mary vary, etc.

They key in any negotiation with clauses like these is to explain why you would like them not just spring them out of the blue. If you are dealing with an owner just “trying to wait it out” over trying to pull a fast one they will get over any reservations they might have. Having impeccable credit and references helps a lot in getting the “fine points” through. If you have bad credit and the LL is taking a risk renting to you anyways it would be much harder to win any deal points.

What I did was present each clause and why I wanted it in the lease similiar to below. Clause #1, I don’t want to be a part of a home sale situation if you would like to sell during the lease we will have to work out an alternate arrangement. Clause #2, I generally don’t want to be part of a foreclosure situation but if there is true hardship I am not looking for an easy out. Clause #3, Protect my security deposit in case of a foreclosure situation. Clause #4, California law limits the damage in which the lessee has to pay by requiring the owner to re-rent the property at market rent and the lessee is on the hook for the difference and missed rent. I just want to put a box around the damage in case life events may cause me to move.

I also offered a longer term. I got all the above included in the lease. Clause #1 the first go and Clause #1-4 in the second along with a longer term.

The key is for me to be in the driver seat. If my LL needs to sell I won’t stand in their way but it will happen on my terms, not theirs. If they want to rent skim, I have the choice of leaving. If they are going to let the property go to trustee sale, I won’t have to go to court for my security deposit (well I COULD, but I’d take the free rent and call it even).

Also for any rental units I’d check the liens on the property if it is privately owned. If the place is underwater you will want to think about living somewhere else. Anyone with foreclosureradar type access can get you that, any agent can do the same. It isn’t perfect, it isn’t a chain of title, but it will give you the basic idea of what is going on with the property.

Edit: Just in case I wasn’t perfectly clear this is for investor or owner occupied properties only. Not corporate owned situations. I highly doubt they would modify their contract and so you just have to be comfortable with the terms as they stand in the contract.

[Effective Demand]

[quote=CA renter]Sounds like you’re going to be okay, Doublewide. Nice!

I agree with Effective Demand. That is a GREAT strategy.
—————

Effective Demand,

Would you mind posting a copy of your agreement here (with identifying material left off, of course), so that other renters could copy your idea? I think this is a very wise move on your part.[/quote]

Since the form was from the LL from a pay site I won’t post it here but I added the following clauses:

“Home will not be placed for sale or shown to prepare for sale during the rental term.”

“Any Notice of Default filed on the subject property gives the lessee an option to cancel the lease with 30 days notice at no penalty to the lessee.”

“If a Notice of Trustee sale on the subject property is filed no rent will be owed or accrue until the lessor returns the security deposit to the lessee.”

“The lessee, at their option, may cancel the lease with 30 day notice and paying a penalty equal to one months rent”

I am obviously not a lawyer, this is not legal advice, your mileage mary vary, etc.

They key in any negotiation with clauses like these is to explain why you would like them not just spring them out of the blue. If you are dealing with an owner just “trying to wait it out” over trying to pull a fast one they will get over any reservations they might have. Having impeccable credit and references helps a lot in getting the “fine points” through. If you have bad credit and the LL is taking a risk renting to you anyways it would be much harder to win any deal points.

What I did was present each clause and why I wanted it in the lease similiar to below. Clause #1, I don’t want to be a part of a home sale situation if you would like to sell during the lease we will have to work out an alternate arrangement. Clause #2, I generally don’t want to be part of a foreclosure situation but if there is true hardship I am not looking for an easy out. Clause #3, Protect my security deposit in case of a foreclosure situation. Clause #4, California law limits the damage in which the lessee has to pay by requiring the owner to re-rent the property at market rent and the lessee is on the hook for the difference and missed rent. I just want to put a box around the damage in case life events may cause me to move.

I also offered a longer term. I got all the above included in the lease. Clause #1 the first go and Clause #1-4 in the second along with a longer term.

The key is for me to be in the driver seat. If my LL needs to sell I won’t stand in their way but it will happen on my terms, not theirs. If they want to rent skim, I have the choice of leaving. If they are going to let the property go to trustee sale, I won’t have to go to court for my security deposit (well I COULD, but I’d take the free rent and call it even).

Also for any rental units I’d check the liens on the property if it is privately owned. If the place is underwater you will want to think about living somewhere else. Anyone with foreclosureradar type access can get you that, any agent can do the same. It isn’t perfect, it isn’t a chain of title, but it will give you the basic idea of what is going on with the property.

Edit: Just in case I wasn’t perfectly clear this is for investor or owner occupied properties only. Not corporate owned situations. I highly doubt they would modify their contract and so you just have to be comfortable with the terms as they stand in the contract.

[Effective Demand]

[quote=CA renter]Sounds like you’re going to be okay, Doublewide. Nice!

I agree with Effective Demand. That is a GREAT strategy.
—————

Effective Demand,

Would you mind posting a copy of your agreement here (with identifying material left off, of course), so that other renters could copy your idea? I think this is a very wise move on your part.[/quote]

Since the form was from the LL from a pay site I won’t post it here but I added the following clauses:

“Home will not be placed for sale or shown to prepare for sale during the rental term.”

“Any Notice of Default filed on the subject property gives the lessee an option to cancel the lease with 30 days notice at no penalty to the lessee.”

“If a Notice of Trustee sale on the subject property is filed no rent will be owed or accrue until the lessor returns the security deposit to the lessee.”

“The lessee, at their option, may cancel the lease with 30 day notice and paying a penalty equal to one months rent”

I am obviously not a lawyer, this is not legal advice, your mileage mary vary, etc.

They key in any negotiation with clauses like these is to explain why you would like them not just spring them out of the blue. If you are dealing with an owner just “trying to wait it out” over trying to pull a fast one they will get over any reservations they might have. Having impeccable credit and references helps a lot in getting the “fine points” through. If you have bad credit and the LL is taking a risk renting to you anyways it would be much harder to win any deal points.

What I did was present each clause and why I wanted it in the lease similiar to below. Clause #1, I don’t want to be a part of a home sale situation if you would like to sell during the lease we will have to work out an alternate arrangement. Clause #2, I generally don’t want to be part of a foreclosure situation but if there is true hardship I am not looking for an easy out. Clause #3, Protect my security deposit in case of a foreclosure situation. Clause #4, California law limits the damage in which the lessee has to pay by requiring the owner to re-rent the property at market rent and the lessee is on the hook for the difference and missed rent. I just want to put a box around the damage in case life events may cause me to move.

I also offered a longer term. I got all the above included in the lease. Clause #1 the first go and Clause #1-4 in the second along with a longer term.

The key is for me to be in the driver seat. If my LL needs to sell I won’t stand in their way but it will happen on my terms, not theirs. If they want to rent skim, I have the choice of leaving. If they are going to let the property go to trustee sale, I won’t have to go to court for my security deposit (well I COULD, but I’d take the free rent and call it even).

Also for any rental units I’d check the liens on the property if it is privately owned. If the place is underwater you will want to think about living somewhere else. Anyone with foreclosureradar type access can get you that, any agent can do the same. It isn’t perfect, it isn’t a chain of title, but it will give you the basic idea of what is going on with the property.

Edit: Just in case I wasn’t perfectly clear this is for investor or owner occupied properties only. Not corporate owned situations. I highly doubt they would modify their contract and so you just have to be comfortable with the terms as they stand in the contract.

[Effective Demand]

[quote=CA renter]Sounds like you’re going to be okay, Doublewide. Nice!

I agree with Effective Demand. That is a GREAT strategy.
—————

Effective Demand,

Would you mind posting a copy of your agreement here (with identifying material left off, of course), so that other renters could copy your idea? I think this is a very wise move on your part.[/quote]

Since the form was from the LL from a pay site I won’t post it here but I added the following clauses:

“Home will not be placed for sale or shown to prepare for sale during the rental term.”

“Any Notice of Default filed on the subject property gives the lessee an option to cancel the lease with 30 days notice at no penalty to the lessee.”

“If a Notice of Trustee sale on the subject property is filed no rent will be owed or accrue until the lessor returns the security deposit to the lessee.”

“The lessee, at their option, may cancel the lease with 30 day notice and paying a penalty equal to one months rent”

I am obviously not a lawyer, this is not legal advice, your mileage mary vary, etc.

They key in any negotiation with clauses like these is to explain why you would like them not just spring them out of the blue. If you are dealing with an owner just “trying to wait it out” over trying to pull a fast one they will get over any reservations they might have. Having impeccable credit and references helps a lot in getting the “fine points” through. If you have bad credit and the LL is taking a risk renting to you anyways it would be much harder to win any deal points.

What I did was present each clause and why I wanted it in the lease similiar to below. Clause #1, I don’t want to be a part of a home sale situation if you would like to sell during the lease we will have to work out an alternate arrangement. Clause #2, I generally don’t want to be part of a foreclosure situation but if there is true hardship I am not looking for an easy out. Clause #3, Protect my security deposit in case of a foreclosure situation. Clause #4, California law limits the damage in which the lessee has to pay by requiring the owner to re-rent the property at market rent and the lessee is on the hook for the difference and missed rent. I just want to put a box around the damage in case life events may cause me to move.

I also offered a longer term. I got all the above included in the lease. Clause #1 the first go and Clause #1-4 in the second along with a longer term.

The key is for me to be in the driver seat. If my LL needs to sell I won’t stand in their way but it will happen on my terms, not theirs. If they want to rent skim, I have the choice of leaving. If they are going to let the property go to trustee sale, I won’t have to go to court for my security deposit (well I COULD, but I’d take the free rent and call it even).

Also for any rental units I’d check the liens on the property if it is privately owned. If the place is underwater you will want to think about living somewhere else. Anyone with foreclosureradar type access can get you that, any agent can do the same. It isn’t perfect, it isn’t a chain of title, but it will give you the basic idea of what is going on with the property.

Edit: Just in case I wasn’t perfectly clear this is for investor or owner occupied properties only. Not corporate owned situations. I highly doubt they would modify their contract and so you just have to be comfortable with the terms as they stand in the contract.

[Effective Demand]

Note, that change was implemented back in 2008. Also note DU can (and does from my observation) exceed that maximum. Also FHA is still extremely loose and there are discussions on the mortgage broker boards of exceeding 50%+ back end DTI.

I saw a discussion this week regarding Wells restricting DTI from 50% to 45% and Chase was coming out with another restriction (I believe it was min FICO related) which I can’t remember right now. But as long as Uncle Sugar allows the loose underwriting and foisting the risk off on the taxpayer it won’t matter much.

[Effective Demand]

Note, that change was implemented back in 2008. Also note DU can (and does from my observation) exceed that maximum. Also FHA is still extremely loose and there are discussions on the mortgage broker boards of exceeding 50%+ back end DTI.

I saw a discussion this week regarding Wells restricting DTI from 50% to 45% and Chase was coming out with another restriction (I believe it was min FICO related) which I can’t remember right now. But as long as Uncle Sugar allows the loose underwriting and foisting the risk off on the taxpayer it won’t matter much.

[Effective Demand]

Note, that change was implemented back in 2008. Also note DU can (and does from my observation) exceed that maximum. Also FHA is still extremely loose and there are discussions on the mortgage broker boards of exceeding 50%+ back end DTI.

I saw a discussion this week regarding Wells restricting DTI from 50% to 45% and Chase was coming out with another restriction (I believe it was min FICO related) which I can’t remember right now. But as long as Uncle Sugar allows the loose underwriting and foisting the risk off on the taxpayer it won’t matter much.

[Effective Demand]

Note, that change was implemented back in 2008. Also note DU can (and does from my observation) exceed that maximum. Also FHA is still extremely loose and there are discussions on the mortgage broker boards of exceeding 50%+ back end DTI.

I saw a discussion this week regarding Wells restricting DTI from 50% to 45% and Chase was coming out with another restriction (I believe it was min FICO related) which I can’t remember right now. But as long as Uncle Sugar allows the loose underwriting and foisting the risk off on the taxpayer it won’t matter much.

[Effective Demand]

Note, that change was implemented back in 2008. Also note DU can (and does from my observation) exceed that maximum. Also FHA is still extremely loose and there are discussions on the mortgage broker boards of exceeding 50%+ back end DTI.

I saw a discussion this week regarding Wells restricting DTI from 50% to 45% and Chase was coming out with another restriction (I believe it was min FICO related) which I can’t remember right now. But as long as Uncle Sugar allows the loose underwriting and foisting the risk off on the taxpayer it won’t matter much.

[Effective Demand]

I have become much more sophisticated in my lease negotiations. I have added a stipulation that the home cannot be placed on the market while we are living there. But then my LL stopped paying to try for a loan mod (and got it).

I then added in that a NOD invalidates the lease at my option and a NTS means we don’t have to pay rent (with no rent accruing) until we get our security deposit back.

I don’t want a LL who won’t agree to those terms as they will have a hidden agenda. And we present a upside to them because we have very high FICOs and references.

I now have the ultimate flexibility with my lease, I negotiated all the above over a long term but with a 1 month kickout clause (I pay the equivalent of 1 mo rent to break the lease). I feel that for my particular situation it is ideal. I can make bids at my leisure and know the cost to me if get one accepted.

When you get the homeowner who is trying to wait out the market they are very optimistic/unrealistic so negotiating many of the above terms are a non-issue. This puts you instead of them in the driver seat if the situation changes or they have an epiphany.

[Effective Demand]

I have become much more sophisticated in my lease negotiations. I have added a stipulation that the home cannot be placed on the market while we are living there. But then my LL stopped paying to try for a loan mod (and got it).

I then added in that a NOD invalidates the lease at my option and a NTS means we don’t have to pay rent (with no rent accruing) until we get our security deposit back.

I don’t want a LL who won’t agree to those terms as they will have a hidden agenda. And we present a upside to them because we have very high FICOs and references.

I now have the ultimate flexibility with my lease, I negotiated all the above over a long term but with a 1 month kickout clause (I pay the equivalent of 1 mo rent to break the lease). I feel that for my particular situation it is ideal. I can make bids at my leisure and know the cost to me if get one accepted.

When you get the homeowner who is trying to wait out the market they are very optimistic/unrealistic so negotiating many of the above terms are a non-issue. This puts you instead of them in the driver seat if the situation changes or they have an epiphany.

[Effective Demand]

I have become much more sophisticated in my lease negotiations. I have added a stipulation that the home cannot be placed on the market while we are living there. But then my LL stopped paying to try for a loan mod (and got it).

I then added in that a NOD invalidates the lease at my option and a NTS means we don’t have to pay rent (with no rent accruing) until we get our security deposit back.

I don’t want a LL who won’t agree to those terms as they will have a hidden agenda. And we present a upside to them because we have very high FICOs and references.

I now have the ultimate flexibility with my lease, I negotiated all the above over a long term but with a 1 month kickout clause (I pay the equivalent of 1 mo rent to break the lease). I feel that for my particular situation it is ideal. I can make bids at my leisure and know the cost to me if get one accepted.

When you get the homeowner who is trying to wait out the market they are very optimistic/unrealistic so negotiating many of the above terms are a non-issue. This puts you instead of them in the driver seat if the situation changes or they have an epiphany.

[Effective Demand]

I have become much more sophisticated in my lease negotiations. I have added a stipulation that the home cannot be placed on the market while we are living there. But then my LL stopped paying to try for a loan mod (and got it).

I then added in that a NOD invalidates the lease at my option and a NTS means we don’t have to pay rent (with no rent accruing) until we get our security deposit back.

I don’t want a LL who won’t agree to those terms as they will have a hidden agenda. And we present a upside to them because we have very high FICOs and references.

I now have the ultimate flexibility with my lease, I negotiated all the above over a long term but with a 1 month kickout clause (I pay the equivalent of 1 mo rent to break the lease). I feel that for my particular situation it is ideal. I can make bids at my leisure and know the cost to me if get one accepted.

When you get the homeowner who is trying to wait out the market they are very optimistic/unrealistic so negotiating many of the above terms are a non-issue. This puts you instead of them in the driver seat if the situation changes or they have an epiphany.

[Effective Demand]

I have become much more sophisticated in my lease negotiations. I have added a stipulation that the home cannot be placed on the market while we are living there. But then my LL stopped paying to try for a loan mod (and got it).

I then added in that a NOD invalidates the lease at my option and a NTS means we don’t have to pay rent (with no rent accruing) until we get our security deposit back.

I don’t want a LL who won’t agree to those terms as they will have a hidden agenda. And we present a upside to them because we have very high FICOs and references.

I now have the ultimate flexibility with my lease, I negotiated all the above over a long term but with a 1 month kickout clause (I pay the equivalent of 1 mo rent to break the lease). I feel that for my particular situation it is ideal. I can make bids at my leisure and know the cost to me if get one accepted.

When you get the homeowner who is trying to wait out the market they are very optimistic/unrealistic so negotiating many of the above terms are a non-issue. This puts you instead of them in the driver seat if the situation changes or they have an epiphany.

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