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Anyone with mortage experience......


stacykat
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I've had some questions stressing me out for some time now that I can't find the answers to anywhere. I am going to be purchasing a home, once my credit is fixed, hopefully in the next few months. I am currently renting and will have to break the lease when I buy the home. I would prefer my landlord not knowing about this until I am approved and have found my home. I was just wondering, when you apply for a loan, does the bank or loan company have to call your landlord to make sure you have been paying on time or are cancelled checks good enough? If they do have to call, do they have to state that their purpose of the call is because I have applied for a mortgage? I thought maybe someone here has experience with this or even knows of a website that is geared towards this. Any help would be great!

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I'm in the process of that right now!

I never know which way my landlord is gonna go - Jekyll or Hyde!

Anyway, on to your question. My loan officer accepted my cancelled rent checks for the last 2 years. I'm going VA, but the checks were acceptable on a conventional loan I had some years back as well.

I don't believe they have to verify anything with your landlord.

Although I'm not in a real small town, people in the real estate, rental and credit business seem to know each other.

I'm playing my cards close to avoid any problems.

Good news for me is that I pulled out my month-to-month rental agreement and found the landlord forgot to enter the number of days notice required to terminate our rental.

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Do we have the same landlord? It's so funny because my nickname for her is Jekyll Hyde! Too funny! That is exactly why I'm afraid for her to find out about this until I know for sure. That's great that you lucked out on your lease with the notice to terminate being omitted. I should double check mine but I believe that since I'm on a year lease, my state (FL) law says it has to be 2 months. I think I can work with that though. The chances of her hearing about it through the grapevine are slim so I'm not too worried about that.

I do have another question though. If the bank knows I have to break my lease, wouldn't they want to see a lease termination agreement signed by my landlord before they approve me? Such a document will guarantee that she will not take me to court, therefore no leins can be placed on the home. Is this me just worrying too much or is this a legit concern?

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I can't imagine the bank would want to see a lease termination agreement. The lease is between you and the landlord. Even if he were to get a judgment, it would be after you funded and closed escrow.

Study up on renter's rights and don't let him push you around anymore than you'd let the CRAs and CAs push you around.

It sounds like the biggest hurdle you've got is getting the landlord to go along with YOUR plans.

If you make it easier for him to rent the place after your departure that might help mitigate some of the bad feelings.

What we are going to do is tell our landlord to put an ad in the paper and agree to allow prospective renters to see the house in the evening when I'm home. The house will be in "move in" condition so he can slide another suck.. errr, I mean renter in. My wife is partly disabled and I won't allow anyone to come in the house when I'm not home. It's the only way I can protect her since I work 65 miles aways.

HTH

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Thank you so much, you have really put my mind at ease! I definately will have the house in move-in condition when I leave, I've got a touch of O.C.D. when it comes to that kinda thing anyways lol. I will explain that to the landlord, and remind her of the poor condition it was in when I moved here, show her the pictures to refresh her memory if need be. The new tenant will be able to move in the next day. Allowing the landlord to show it, while I am home, is another good idea. I feel much better knowing this info, it will be great help to me when it comes time to apply for my loan. I wish you and your wife lots of happiness in your new home!

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I just wanted to confirm that all lenders will accept your rent checks, of course need to have them either canceled or the copies that some banks are giving on your statement work.

You don't need to inform the bank as to your lease agreement, when it expires etc. However, I would suggest that the landlord is satisfied when you leave, as if you don't take care of them, they can come back and sue you or put you in for collection for any money owed, so next time you refinance that could cause a problem

Charles

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I do have copies of all my cancelled rent checks for the past 2 1/2 years, so that should be fine then. I will be sure that I cover myself with a lease termination agreement so my landlord cannot take me to court. I am just now getting my credit squared away and have learned my lesson lol. Thanks so much for your confirmation!

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I totally agree with Smog and First. I might also add that when you decide to start looking, you set an appointment with your landlord. At that time, you tell them you are in a position to purchase a home and wish to do so. You are aware of the agreement and wish to reach a suitable agreement between you for an early release, if at all possible. As you said, the house would be ready for next day move-in, etc. You will be more than happy to show house during agreed hours. In fact, you will even pay for the ad. Do everything you can think of to relieve their negative attitude and show your definite concern for their investment. This way you'll know where you stand when you go shopping for your loan.

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The only thing I'm afraid of if I tell her once we start looking is that she may want a set date for us to be out. If that's the case, we will be rushed and may end up settling on a home that isn't what we were dreaming of. Maybe I can hold off until we find a home? It will be sometime before we are actually approved and then maybe a months wait for closing. This may come pretty close to the 2 months notice we have to give the landlord in order to terminate. She has last months rent so if we move out before the end of the month, she will be paid up until the end. Also, our lease states that the landlord will keep my deposit if we terminate it, it's a nice chunk of change but hopefully that will ease the sore feelings. She'll basically be making a nice profit because we moved out. Thank you everyone for all your help, as you can tell, I'm wet behind the ears when it comes to mortgage process. I've been stressing for a few months now over this but couldn't find help anywhere regarding my concerns until now. :D

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I can appreciate your apprehension on this matter. For that reason, you could respond with the fact you would assure them as much of the two month period you can based on the normal procedure of purchasing a home. At the most you would only lose a few days of the last months rent or whatever part of the month remains. You could also promise to close escrow to benefit them. In other words, do all you can to show your concern. If they are so nasty they don't respect your honesty and care, I don't know what else to tell you. I just know myself that I would work with my tenant in any way possible, including the breaking of a lease. In no way would I stop anyone from bettering themselves.

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Gosh, I wish you were my landlord! Most people in this world are kind-hearted like yourself, however, unfortunately my landlord is not one of those people lol. I have known her over 2 years and know that she will try to suck as much money out of us as she possibly could. She's mean and nasty and I wish I never got involved with her. On the bright side, in a few months, I will be done with her and more than likely ::crossing fingers:: will never see her again lol.

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Good Luck on whatever you decide. It is sad as to how society has gotten the way it is today.

In closing, I will just say that the main thing on your mind is to walk away smiling at the least amount of loss to you and yours.

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  • 2 weeks later...

I once took over the last 3 months on someone's lease. They were just about to close on a home purchase and didn't want to break their agreement with their landlord. The landlord was fine with me taking over.

I am now a landlord. I will do what I feel is right in working with a tenant. If they let me know what their plans are I have no problem amending our agreement, as long as they act responsibly. If a tenant just up and left because they felt like it, and basically said to hell with me, I would go after them. I would get a judgement against them. If they had real property my judgement would attach to the property and SOMEDAY I just MIGHT be able to collect. Renting out properties can be stressful business, it makes it much easier when someone is cooperative.

The advice given on this thread is really good. Hopefully your landlord will work with you and you can both move on painlessly.

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I know my landlord will come after me if I just up and leave. I won't do this unless I absolutely have to. She will be notified of my intent to terminate via certified mail and also via telephone. My concern is that she is not going to be cooperative. She is very umm....well she has a split personality it seems, and does not like to be bothered with anything. Her having to start over with a new tenant is going to upset her, she'll more than likely blow up at me and may not cooperate. I'm going to document everything just in case we do end up going to court. The only reason this would happen is if she doesn't cooperate, either not letting me out of the lease or wanting an absurd amount of money to break the lease. I'll just keep my fingers crossed that I'll catch her on a day when her nice side prevails lol. Thanks for your reply!

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If you have such concern in this matter, it might well be worth asking a lawyer for their advise on handling the matter - show them a copy of the contract and see if there mgiht be any thing you overlooked as being a problem later on.

I had an insitant landlord yesterday; update the CRA right quick when her tenants left! Only half a month and she was already skip tracing.

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