New York Lawyer Blog

Whether you are a leaseholder or a landlord it is important to have proper knowledge about the residential lease agreement. It is a contract between both the parties. While some are satisfied with a verbal agreement, it is advisable to opt for a formal written contract. It is better to go for a written agreement with proper clarification of the terms and conditions so that it becomes easier to tackle any sort of dispute in the future. To have a better idea about these agreements and to clarify any doubt property owners can consult a property solicitor.

Residential lease agreement gives certain rights to both the property owner and the leaseholder, which is based on a specific agreement. It should clearly state the rent amount to be paid, the mode and due date of payment, basis of payment, rule and regulations to follow and the penalties applicable on failure of payment within the agreed period of time. But before going for such an agreement it is important to find a suitable tenant. Check the background of the prospective tenant thoroughly. After that select the right residential agreement based on individual circumstances is necessary.

There are three main types of residential lease agreement in England and Wales. They are – regulated tenancies, assured shorthold tenancies and assured tenancies. It is also important for the landlords to be aware of their legal obligations to the leaseholders. There are certain procedures and laws that protect the tenants if they fail to pay rent on time. Property owners should consult their property solicitors to take right legal actions in such a situation.  According to the Government-authorised tenancy deposit scheme in England and Wales, property owners have to pay a maximum deposit rent amount up to the value of £100,000 per annum.

Along with these landlords are also responsible for the repair and maintenance work related to the property. They should make sure that the property is fit for habitation. It is also important to check the electrical connection and other utilities. Also discuss all circumstance under which the termination of the lease will take place.

You should always calculate your affordability before taking out a mortgage as your lender can foreclose the property if you cannot make your monthly home loan payments on time. However, lenders usually don’t want foreclosure as the process is difficult as well as expensive; but, at the same time, they may not hesitate to do so when it is the only option available to recover the loan amount, as much as they can.

Steps in a mortgage foreclosure

You should know that the foreclosure laws vary from one state to the other. So, if required, you can take help of an attorney to know about the foreclosure laws in your state. However, there are some basic steps in a mortgage foreclosure that are discussed below.

1. Demand letter: A mortgage lender may send a demand letter when your home loan payment is past due for 2 months. By sending this letter, the lender requests the borrower to pay the required amount and get current on the loan.

2. Notice of Default: If you don’t make the payments after receiving the demand letter, your lender can send you an official and legal Notice of Default, which implies that the foreclosure has started.

3. The payback period: After getting the Notice of Default, you have a definite time period within which you can pay back the required amount to cure the default and get current on the loan. During this time period, you can also sell the house and pay back the outstanding loan amount to the lender. You can also arrange for a short sale or go for a deed in lieu of foreclosure.

4. Filing a foreclosure: If you are not able to clear the debt within the stipulated period, then your lender can file either a judicial or a non-judicial foreclosure, depending on the mortgage deal and the foreclosure laws in your state.

5. Notice of foreclosure sale: Even after a foreclosure filing, you can pay back the default amount within 90 days. If you fail to do so, the lender will send you a Notice of Sale.

6. Public auction: After sending the Notice of Sale, the mortgage lender can arrange for a public auction within 30 days at which the highest bidder gets the property. The lender can also buy the property if no one bids enough to cover the outstanding debt amount.

At any time during the above process, you can pay back the default amount and the foreclosure costs in order to get current on your mortgage loan. And In Arizona you may be helping someone by an investor or home buyer purchasing a home in Arizona Preforeclosure. If you cannot afford the home any more, perhaps someone will purchase the home for you so you do not have to make the payments anymore.  However, you should do it at least 24 hours prior to the public auction in order to save your property from getting sold in a foreclosure auction