According to the Florida Association of Realtors, in a study (poll) done, in LOS ANGELES – May 6, 2011 – More than three-quarters (82 percent) of independent landlords say they would rent to someone who lost a home in foreclosure, assuming the applicant traditionally had good credit, according to a survey released today by The National Association of Independent Landlords.
“Landlords typically won’t rent to applicants with poor credit – and a foreclosure will absolutely slam someone’s scores. The exception is when they see people who have paid their bills their whole life but lost their job, can’t meet their mortgage and must hand their keys back to the bank,” says Tracey Benson, president of The National Association of Independent Landlords.
Despite recent credit problems, Benson says applicants with a foreclosure can prove good risks, chiefly because they did once own their own home. “These people are used to taking pride in where they live.”
Increasingly, mortgage defaults stem more from lost jobs rather than borrowers who had a toxic mortgage they could not afford. A thorough background check usually indicates whether financial woes are part of a recent spate of bad luck or a life-long trend.
The National Association of Independent Landlords polled 563 members from March 21 through March 25, 2011.
© 2011 Florida Realtors®
We want to thank the Florida Association of Realtors for continually bringing us this information.
The Feds recently adopted guidelines which will apply to Fannie Mae and Freddie Mac backed loans which are possible foreclosures. These changes may take effect as soon as the end of 2011.
The new guidelines will include the following:
Servicers may not apply the “dual track” tactic; that is to say a servicer may not both work with a borrower to avoid foreclosure while at the same time proceeding with a foreclosure.
Loan servicers must contact a borrower as soon as they enter the delinquent status with their loan and as long as both parties are showing “good faith” to resolve the issue a foreclosure may not be started.
Servicers must “formally” review each case before starting a foreclosure.
There will be rewards for fast loan modifications; the lender / servicer will receive $1600 for a loan modified in under four months, those that take longer will have reduced rewards.
If a foreclosure is already in process and the servicer works out a modification the servicer may still be eligible for a reward.
The entire modification process is being simplified with less forms and less red tape.
If you are a borrower / home owner and you are having trouble with your loan payments be sure to contact your lender, be proactive; you may be able to modify instead of allowing your home to go to a foreclosure sale.