www.workersworldtoday.com
July 2022
15
No. 35
2022: Fire Your Landlord and Become a Homeowner BY CHEREEN JAMES
D
o you find yourself moving from apartment to apartment within one and two years, just to pack up and move again? Do you get annoyed with disruptive knocking, texting or calling every first day of the month for the rent? You need to fire your landlord today. How? By becoming a homeowner. When you are a homeowner, you are in charge of whether you stay for decades, pass on generational wealth, or earn profits in equity and rental income. Here are some key things to know before you fire your landlord. Know your financial situation Before you toss your keys to your landlord, you need to know your financial situation. This will help you make a decision about what type of property you can afford and where you may want to live. You should have money saved up for the down payment on a home, at least 3.5% of the desired price. If
credit before you can purchase a home.
you’ve saved enough cash to purchase a home without a mortgage, then you can close faster. Just be aware that you will need room in your budget for any additional fees, such as legal and title fees. If you need a mortgage, you may speak to several lenders about your options and interest rates before you commit to a mortgage. You may be able to purchase a home that brings enough rental income to help pay the mortgage, so that your wages stay in your pocket. Once it is clear that you can
purchase a home, you will receive a pre-approval from the mortgage lender. Fix your credit In order to be granted a pre-approval, you need a good source of income and good credit. Mortgage lenders will ask for documents showing your income, like taxes and pay stubs, and they will need your credit score. If you are in serious debt, you may consider a credit repair program or speak to a bankruptcy attorney about resolving your
What to Expect When Facing Judicial or Non-Judicial Home Foreclosure BY JANET HOWARD
R
ecent surveys show that a significant number of Americans are unprepared to handle an unexpected bill of $500. As many as 80% of Americans live paycheck to paycheck. A sudden job loss, illness or accident can create financial chaos. For anyone paying off a home mortgage, foreclosure and the impending loss of their home can quickly become a reality. State foreclosure laws vary, and a homeowner facing foreclosure should quickly become familiar with state and federal laws outlining procedures and requirements. Both the process and length of time involved will depend on the type of foreclosure allowed by state law and documents that were signed to finance the home purchase. Judicial vs. Non-Judicial Foreclo-
sure Just under half the states employ judicial foreclosure in which the foreclosing party must begin a lawsuit to regain the property. A complaint and summons are filed in court and then served on the homeowner. The remaining states use non-judicial foreclosure, a process that generally works more quickly and begins when the homeowner receives a notice of default from the loan servicer that foreclosure and sale of the home is imminent. Judicial foreclosures are more common
when a mortgage is involved. Non-judicial foreclosures are most common where ownership involves a deed of trust which includes a power of sale clause. Judicial foreclosures tend to take longer for several reasons. First, federal law requires homeowners to be 120 days in arrears before a foreclosure suit may be filed. Second, the court process is slow due to crowded dockets, required hearings and a limited number of available judges. Once a homeowner has been served with a complaint, he or she usually has 20-30 days to file an answer which either admits or denies the allegations, raises potential defenses and tells the court why foreclosure is improper. Filing an answer prevents the lender from obtaining a default judgment and automatically winning. continued on page 7
Decide what type of home to purchase Now that you’re pre-approved for a loan, you will be shown your loan amount, the home size that you may purchase, and the property taxes that you can afford to pay. If you’re purchasing with cash only, then the ultimate decision on the type of home is yours. There are condos, single family, multiple dwellings, and co-ops that you may choose from based on your loan amount and market value of the desired property. Co-ops are not considered to be real property but are shares in a cooperative stock. When you purchase co-op shares, you own the share; you must adhere to the
continued on page 4
INSIDE: Do You Need an Agent? The Answer Is Yes! ...............................2 Divorce and Foreclosure: What You Need to Know ......................3 What Kinds of Property Deeds Are There? ............................................5 Beware of Mortgage Scams ...................................................5 Avoid Surprises at the Closing Table .......................................6 Real Estate Careers for People Who Don’t Want to Buy or Sell Homes ..........................8
Call Equity Smart Realty at 888-670-6791 for a consultation.
