Our Blog -- Investments, Mortgages and Advice

This morning I went to the local realtors meeting.  Three lawyers spoke about the changes in laws as a result of the economic downtown and foreclosure crisis.  Some tidbits:

First, if you buy a home using the tax credit program, you need to plan on living there for 3 years.  You can't live there for a few months and then rent it out. 

Second, if you are buying a property as a short-sale, you need to make sure that the trustee (mortgage company) knows that a short sale is going on.  Jeff Hare, a real estate attorney from San Jose, told a story of a recent short sale where the selling agent did not know that the trustee was planning on auctioning off the property. 

Third, if you plan to buy investment properties that are in foreclosure, there are some new laws protecting tenants.  Tenants can no longer be thrown out when a property goes into foreclosure.  Many have 90 days to vacate the property.  This could be a problem if the investor plans to renovate the property immediately and need to have clear access to it.