First, you should know where the lender is at in the foreclosure process. In Jacksonville Florida, the time to foreclose on a property is pretty lengthy. It’s taking anywhere from 6 months, and as ling as 2 years or more. Sometimes knowing what’s going on with the bank can be difficult to find out, but there are certain legal documents that are filed with the Duval County Clerk of the Courts that provide legal notice during the process. You can visit the website at any time to search for the foreclosure actions. You can enter the last name, and first name of the property owner, and even filter by records within the last 2 years, and see what action has been taken.

The documents that can be found (in order) during the foreclosure process are:

Lis Pendens: This is the first official document that is filed by the foreclosure attorney. It can be filed as soon as the borrower (owner) is 90 days behind on their mortgage payments. Some lenders are taking a little longer to file this notice. This is a notice to “warm” the borrower that a Law Suit is Pending.

Notice of Action: This legal document follows the Lis Pendens and is notice to the owner that a Foreclosure has been filed against the property.

Final Judgement: This means that the foreclosure is almost complete. The judge has agreed that the foreclosure motion has been approved, and that the property can be sold to the highest bidder at the courthouse steps.

Notice of Sale: The final step in the foreclosure process is when the property is auctioned off at the courthouse. A legal notice is delivered to the property and to the owner , usually giving them a 30 -45 day notice of when the sale will occur.

By knowing the steps in the foreclosure process, you can keep a watch on the property to see what (if any) action has been taken, and what dates are being designated on the paperwork for deadlines, etc.

If you’re renting a house from Caywood Realty that is in foreclosure, or facing foreclosure, then your property manager will keep you fully informed of any action that is being taken against the property. We want you to have as much notice as possible of when you’ll need to move. The last thing that we want is for you to be surprised, so we do communicate with you and give you the tools that you need to stay informed.

1. How far along is the foreclosure process? Depending on the stage of the foreclosure, it could be anywhere from 30 days way from the foreclosure sale, up to as long as 12 – 24 months. If the property is being managed by a broker, then they should keep you informed of what’s going on. You can also do your own research. Read this article about renting a house that’s in foreclosure for more information and resources on how to research this yourself. All of the properties that Caywood Realty has available for rent are published with the current stage of the foreclosure.

2. Is the house currently for sale? Most houses that are facing foreclosure are also listed For Sale with a Realtor. This means that you’ll need to agree to show the property to potential buyers on a regular basis. Once a buyer has made an offer to purchase the property that is acceptable to the owner, the property will then be in the short sale process. The short sale process takes about 3 to 4 months to complete. If (and that’s a big if) the seller’s lender agrees to accept the offer on the property, then they usually allow 30 days for closing. The Realtor should keep you updated during this process so that you can start making plans to move.

3. Is the property currently under short sale review? If there is a signed offer on the property, and it’s being reviewed by the bank, then it may be a short time before you’re asked to move. It’s not always the case, though. If the offer to purchase isn’t high enough to meet the needs of the lender, then it will be declined and the property will go back on the market for sale. Each time a new offer is received, the short sale process will start over. Normally you’ll be able to stay in the home until the offer is accepted by the seller’s lender and the closing date is set (normally 30 days after approval has been made).

If we have a property that is facing foreclosure, and it’s available for rent, we will only offer that property on a month to month rental agreement. Under no circumstances are we able or willing to sign a once year lease agreement. These types of homes should be considered temporary housing, with the understanding that the property is facing foreclosure. The minimum amount of time required by Florida law on a month to month rental agreement is 15 days (with the notice being delivered by the 15th of the month). As a courtesy, we do keep you more informed during the process so that you have time to prepare for a move.

What follows is a list of common things you will find around the house that a tenant might have some affect on and a range of life expectancy. For vinyl and wall-to-wall carpets you should get a pretty good idea of the life expectancy when you buy it, but for other times you may not.

A rule of thumb to follow, whenever there is a question about who should pay for damage, is that the landlord should pay. In this article, however, I will attempt to remove some of the question and possibly enable you to get a better idea of when you should deduct money from the security or cleaning deposits.

The first step in determining wear and tear is good record keeping. You need records, as complete as possible, of when you purchased items and/or when you installed them If you don’t have a starting point, you certainly will have no way of knowing with any accuracy how long they should be expected to last.

If the fixtures or appliance were in place when you bought the property, try to find out form the seller their history. Many times the previous owner will have all the warranty and product information, including manuals.

The other vitally important thing to have is the tenant move-in checklist, signed by the tenant. Without that, the tenant can claim, often successfully, that whatever the damage was, it was there when he or she moved in.

In addition to that, some damage is the fault of the landlord for not checking the property regularly. As you well know, you cannot expect a tenant to take care of a property the way the owner does. Tenants just don’t notice things that can do major damage to a building.

Fro example, few tenants would think anything about earth to wood contact. They will shove dirt up against the side of a house and not even notice when the wood on the side of the house starts to rot. That is the fault of the landlords. A tenant will probably not notice a bad roof until it leaks, despite the fact that it shows all the signs of being on its last legs.

There is simply no way you could collect damages from a tenant for dry rot due to earth-to-wood contact: you should have seen it. Once you have noticed that a tenant is piling dirt against a building, though, it is up to you to tell him not to do it anymore. Once you do, and you have left a paper trail proving that you have, then the tenant would have some responsibility. Even so, it is up to the landlord to take care of his investments.

When a tenant moves in, make it clear to him or her that you want to be notified of damage and that you don’t want to let things go.

HOW TENANTS DAMAGE THINGS

Dishwashers: They use the dial to run them through their cycle. This will strip the timing mechanism. Dishwashers should be allowed to run through their cycles fully, not set to rinse again or dry again. Since a dishwasher should last between five and twelve years, if the control knob breaks before that, it is above and beyond ordinary wear and tear.

Water heaters: do not wrap them in an insulating blanket, no matter what the environmentalists claim. Doing so voids their warranties and the Underwriter’s Laboratory certification. The insulating blanket makes them too hot and can overheat the working. If a tenant wraps a water heater, thinking they are saving energy, and the water heater goes out, that is beyond ordinary ear and tear. Tenants will sometimes drain an electric water heater without turning the electricity off. That will burn out the elements.

Water heaters last form eight to twelve years. Burnt out wiring or elements are beyond ordinary wear and tear.

Ranges: gas ranges will last indefinitely. About the only thing a tenant can do to damage one is break a knob, and it happens. But accidents happen, and it is probably ordinary ear and tear.

Electric ranges, on the other hand, do not last as long, about 15-20 years. Tenants will remove elements to clean and not put them back in properly, shorting out either the element or the entire wiring on the stove.

Furnaces: It is important to change the furnace filter once a month. Leave a dirty filter in and risk ruining the fan motor. If necessary, get the tenant a supply of filters either the instructions to change it the first of every month, whether he thinks it needs it or not.

Storm doors: tenants remove the wind spring and the door flies open, breaking the glass, springing the hinges, or whatever. With no mistreatment, storm doors will last until they are too ugly to leave up. If a tenant breaks one, it is above and beyond ordinary wear and tear.

Driveways: Concrete is damaged by something known as “point loading”. This happens when a heavy vehicle is parked on the same spot for a long period of time or over and over. Eventually that weakens the concrete in that spot and it cracks. The cracks radiate out form the spot of the point load. If your tenant has a heavy vehicle, ask that he park it in different places on the driveway. Point load damage could be considered above and beyond ordinary wear and tear.

Cabinets: most tenants will not pick p a screwdriver and tighten a screw that is coming loose. Many tenants don’t even know what a screw driver is. Then, when the door comes loose from one hinge, they will let it hang from the other one. Cabinets should last for 20 to 30 years. If they are damaged from tenant neglect such as that, it is above and beyond ordinary wear and tear. It doesn’t cost a tenant anything to tighten a screw. At the same time, though, a periodic inspection would probably have discovered a loose cabinet door.

Floors, hardwood, tile, vinyl: You know what the life expectancy is when you buy the flooring and it varies by quality. If you buy cheap vinyl, and a tenant’s high heel pokes a hole in it, you got what you paid for. But if a tenant drags something sharp across the floor and scratches or cuts the flooring that is above and beyond ordinary wear and tear.

Doors (hinged): tenants have been compared to teenagers; if something doesn’t work the first time, force it. Things get caught indoors, such as broom handles on the hinge side of the door, and then the door gets sprung. Screw holes are stripped and hinges get bent. Doors last indefinitely, if used properly. Damage to them is above and beyond ordinary wear and tear.

You can’t be there all the time to watch to see that a tenant doesn’t do anything stupid or destructive. Previous landlords can often give you some insight on how well a tenant took care of a property. Some tenants are simply unconscious; they don’t mean to do any harm, they just have no way to connect what they have done with the damage. One of the mysteries of life.

Deciding whether damage is beyond ordinary wear and tear often boils down to a landlord basic, deciding if something was used in a way it wasn’t designed for. If it wasn’t , it is damage which should be paid by the tenant.

Is there an application fee?
The application fee is $35 per adult, and applies to anyone 18 years of age and older. Everyone 18 years and older must fill out an application, be approved and must be on the lease. Once I receive your initial application, I will contact you to arrange for payment of application fees. We accept payment by Cash, Check, Credit Card, and PayPal.

How do I apply for a house?
You may either bring in your application to our office or submit your application online. It is very important to apply for the  home you are interested in right away so that I can remove it from the market.

How long does it take to be approved?
This process usually takes 24 to 48 hours; however, it can take longer due to landlord and employment checks. Please be sure to provide proof of current pay stubs, other income and/or bank statements along with the application.

You will be contacted upon approval or denial. If approved, we will schedule a time for you to come in and sign paperwork and pay your security deposit.

What are the deposits and fees?
Listed below are fees that may apply. Once approved, we will write up an agreement and finalize the lease agreement for your new home.

Although hiring a property management company has many advantages, using one can be expensive. And, even apart from the cost, relying on a property management company is not for everyone. Consider the following factors to determine if hiring a property management company would be a good decision for your business. You should consider hiring a property management company if:

You have lots of properties or rental units.

The more rental properties you own and the more units they contain, the more you’re likely to benefit from a management company.

You don’t live near your rental property.

If your rental property is located far from where you live, hiring a property management company can be invaluable in dealing with the many issues that you will not be able to handle from afar.

You’re not interested in hands-on management.

Many landlords look forward to the challenge of finding good tenants and the rewards of maintaining a safe and attractive property on their own. But if you view rental property ownership strictly as an investment and want little or nothing to do with the day-to-day management of your properties, consider hiring help to manage your property.

Your time is limited.

Even if you enjoy hands-on management, you may not have much time to devote to your business, especially if landlording isn’t your day job. And if you prefer to spend your time growing your business, including searching for new properties, arranging financing for renovations, or changing your business structure, then a management company may be a good way to spend your money.

You can afford the cost.

Hiring a property management company is an attractive option if you can afford the fees. When interviewing companies, expect to hear quotes ranging between 5% and 10% of what you collect in rent revenue. If it’s a down market and you’re able to manage things yourself (or with the help of a resident manager or other employees), you may want to keep doing so until the market turns around. You’re suddenly inundated with management tasks. If your business is growing, at some point you may find that you need a substrantial amount of help to manage everything properly. At that point, it might make sense to hire a management company.

You don’t want to be an employer.

If you hire a resident manager or other employees to help with your property, you become an employer. You’ll have to handle payroll and deal with a host of other legal requirements and considerations. But, because a property management company isn’t your employee (it’s an independent contractor), and neither are the people who work for the company, by using one you avoid the hassles of being an employer.

Your property is part of an affordable housing program.

If you participate in an affordable housing program, things can get complicated. Usually, in these programs the landlord receives financial assistance, which may be in the form of a grant, low-interest loan, or tax credits, in return for agreeing to rent at least part of the property to tenants earning below a certain income level. In order to continue receiving the assistance, the landlord must comply with a complicated set of rules. With so much at stake, it’s often worth hiring a property management company that has expertise and experience with the particular housing program in question.

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Kevin Perry

The most important part of this scenario is FULL DISCLOSURE. You do not want to rent a property to a tenant who is not aware that the property is in pre-foreclosure or foreclosure status.  That could cause problems for you and surely for the tenant.

What if I’m doing a short sale with my lender?