Start with the federal laws. Those will usually trump most state laws, unless the state laws are more in favor of protecting the tenants.  When you buy a foreclosed home that is occupied, make sure you understand how the occupants are protected under The Helping Families Save Their Homes Act of 2009. If the current tenants were not the owners who were foreclosed on (or family members of the owners), you’ll need to give them 90 days notice of eviction if they were renting month-to-month. However, if they signed a lease, then you will have to allow them to stay until the end of their lease. An exception to this is if you are planning to live there yourself, in which case, you just need to give the tenants 90 days notice of eviction.

Once you’ve figured out what to do about the current renters, it’s up to you to decide whether to sign a new lease with those same renters or find new renters. In either case, you will have certain responsibilities as a landlord, and those will vary by state. Here are some things to keep in mind if you’re planning to become a landlord in the state of Arizona:

• First of all, familiarize yourself with the Arizona Residential Landlord and Tenant Act (ARLTA). This document covers the legal rights and responsibilities of landlords and tenants in Arizona. It also contains information about steps to take when either party does not own up to his/her responsibilities or obligations in the rental relationship. You can get a free copy of the ARLTA on the Secretary of State’s website.

• If you’re faced with a circumstance in which you need to evict a tenant in Arizona, you’ll need to supply an eviction notice in writing.  The amount of time you must give the tenant to move out depends on the reason for eviction. The more serious the infraction, the less notice you have to give. If the tenant doesn’t pay the rent, you must give him/her five days notice and an opportunity to pay the amount due. If the violation is one that affects the health and safety of the tenant or those around him/her, then a five-day written notice is required. For less serious violations, such as unauthorized pets, you’ll have to give ten days notice. In cases of more serious breaches of contract, such as gang activity, firing a weapon or other gun on the property, physically harming other people, etc., you are allowed by law to terminate the rental agreement immediately (still with a written eviction notice). Read more about the process of evicting a tenant in Arizona to make sure you are in compliance with the landlord and tenant laws of that state.

• You should learn about any exceptions to the landlord/tenant rights and restrictions in Arizona. For example, tenants in the military or tenants who are victims of domestic violence are allowed to break their leases under certain situations, as long as they go through the proper legal channels. Learn more about the circumstances in which Arizona tenants who are members of the military and victims of domestic violence are allowed to break their leases.

• You, as the new property owner, are responsible for the maintenance and upkeep of the property. Be sure to respond within a suitable amount of time and address any legitimate issues appropriately. In fact, be proactive when you first take ownership and ask the tenants if everything is working properly. For more information about maintenance responsibilities and rights to inspect, read about the Landlord Right of Entry Laws in Arizona.

Of course, there is a lot more information out there to be learned. Make sure you are diligent about learning your rights and your tenants’ rights at the federal, state, and local levels. Renting out a property can be a great investment, but you have to know the property and laws before you really know what you’re getting yourself into as a landlord and an investor.

Learn more about Federal and Arizona Rental Laws:

National Low Income Housing Coalitions’ Renters in Foreclosure Toolkit

Local Tenant Rights, Laws, and Protections in Arizona from HUD.gov

Start with the federal laws. Those will usually trump most state laws, unless the state laws are more in favor of protecting the tenants.  When you buy a foreclosed home that is occupied, make sure you understand how the occupants are protected under The Helping Families Save Their Homes Act of 2009. If the current tenants were not the owners who were foreclosed on (or family members of the owners), you’ll need to give them 90 days notice of eviction if they were renting month-to-month.  However, if they signed a lease, then you will have to allow them to stay until the end of their lease. An exception to this is if you are planning to live there yourself, in which case, you just need to give the tenants 90 days notice of eviction.

Once you’ve figured out what to do about the current renters, it’s up to you to decide whether to sign a new lease with those same renters or find new renters. In either case, you will have certain responsibilities as a landlord, and those will vary by state. Here are some things to keep in mind if you’re planning to become a landlord in the state of Michigan:

• In Michigan, landlords must start the eviction process by filing a “Notice to Quit”, which will determine the number of days a landlord must give to a tenant to make them aware of eviction prior to filing a complaint and summons. The minimum length of a “Notice to Quit” is seven days for nonpayment of rent. The minimum length of a “ Notice to Quit” for termination of a lease is usually thirty days. The landlord can then file a complaint and deliver a summons to the tenant. After ten days, if the tenant has not vacated the premises, a “writ of restitution” is produced by the court sheriff, which will restore full possession to the landlord.

• If you’re a landlord and fail to notify your tenant with a notice of damages within thirty days after lease termination, you must immediately refund the full security deposit to the tenant, and no damages are due. If you feel that you have a disputed case to claim the security deposit or charges, you have forty-five days after termination of occupancy to file a suit against the tenant. Learn more about security deposit laws in Michigan.

• You, as the new property owner, are responsible for the maintenance and upkeep of the property. Be sure to respond within a suitable amount of time and address any legitimate issues appropriately. In fact, be proactive when you first take ownership and ask the tenants if everything is working properly. For more information about maintenance responsibilities and rights to inspect, read about the Landlord Right of Entry Laws in Michigan.

• In most cases, you can raise rent in Michigan as you choose, but there are some rules, such as you have to give the tenant, you guessed it, written notice. Here are some other rules surrounding raising rent in Michigan.

• An important Michigan state law to keep in mind when buying a foreclosure home in Michigan is one that gives borrowers whose homes are foreclosed on a statutory Right of Redemption. This means that the borrower who lost his or her home to a foreclosure has the legal right to buy back the home within one year if they pay off the full amount owed at the time of foreclosure, as well as any other liens, taxes, interest, and fees incurred by the lender to foreclose on the home.

Of course, there is a lot more information out there to be learned. Make sure you are diligent about learning your rights and your tenants’ rights at the federal, state, and local level. Renting out a property can be a great investment, but you have to know the property and laws before you really know what you’re getting yourself into as a landlord and an investor.

Links to More Information about Federal and Michigan Rental Laws:

Get more info about tenant and landlord laws in Michigan

Read about tenant rights, laws, and protections in Michigan on HUD.gov

Check out the National Low Income Housing Coalitions’ Renters in Foreclosure Toolkit

Fortunately, there are people who are focused on helping you through the process of buying bank-owned properties. These are agents who specialize in the ins and outs of REO properties.

When investing in REO properties, look for agents who will:

Explain to you how the foreclosure process works in your area in layman’s terms.

Different states have different laws regarding foreclosure sales. When dealing with REO homes, the best agents will know the basic laws and have contacts in real estate law who are readily available to answer any questions and address any nuances that may arise. Because the process is so different from a standard real estate transaction, not every real estate agent can get access to REO properties to sell them. Agents experienced with bank-owned properties can get their hands on lists of REO homes for sale (or that will soon be for sale) that other real estate agents can’t get.

Arm you with the tools you need to find the best REO properties to suit your needs.

Agents who specialize in bank-owned homes also have access to online REO listings, bidding platforms, and other real estate services to help you find the most listings and the best deals in REO homes. You can see photos and get other detailed information about REO homes for sale without having to drive to each and every property. There are also applications for handheld devices, as well as tools and processes that technology savvy agents will use to provide you with information on REO properties as quickly as possible.

Help you get as much information as possible about the condition of the REO home for sale.

An official inspection might seem like an obvious “must-do,” but quite often, banks will try to sell an REO home as-is and won’t allow an inspection.  A good agent will work to negotiate on this point, or at the very least, allow you to bring an inspector with you during a visit to the home before you sign any paperwork. An inspection is critical when purchasing a property that has been foreclosed on, because the previous homeowners (or renters) may not have had the money or the inclination to keep the home in good condition. If the home is occupied upon foreclosure by the previous homeowners, tenants, or squatters, an inspection may not be in the cards.

Provide information about the history of the REO property for sale, as well as the neighborhood in which the REO property is located.

When it comes to REO investments, the best agents will provide information about the percentage of other homes in the neighborhood that have been foreclosed on or are in pre-foreclosure; data about when homes have sold and for how much; the condition of homes in the area, etc. This may involve reaching out to neighbors and asking questions, and is especially important if you’re unable to obtain an inspection. A good agent will also find out if there are any outstanding taxes, HOA dues (when applicable), or other liens on the property.

Educate you on national and local laws regarding current occupants of the foreclosure property.

One of the challenges of purchasing an REO home is that there’s no guarantee the home will be vacant when you come into ownership of it. Renters who weren’t informed by the previous owner that the house was under foreclosure in time to find a new residence may still live there. Or, a homeless person may be using the property as a shelter, even if the electricity and water is shut off. Whatever the case may be, you’ll want to know your legal rights, as well as the current renters rights, in your area. Keep in mind that they may be different from state to state, and a good ‘agent will understand the laws related to the foreclosure sales process or have a relationship with someone who does.

Assist you during the process of submitting an offer on an REO home.

The paperwork and processes involved in making on offer on an REO property are very different than your standard real estate offer. There are rules and stipulations that can be confusing to most homebuyers and many agents, but that agents who specialize in REO homes know like the backs of their hands. Whether you bid on an REO property online or through some other means, it’s important to find an agent that can make sure you do everything by the book so that your offer is considered (and not thrown out because you unknowingly missed a step or left out some required information).

Of course, no one can eliminate the possibility of hiccups in a real estate deal completely, or in any deal for that matter, but an agent experienced in foreclosure properties will educate you on all the details of the process. That way, you know what to expect and can feel confident in your decision to invest in a particular REO property (or not).

Know more on:foreclosure listings

Buying or selling a home used to be pretty straightforward.  You got an agent to handle the sale for you, and they did everything in person or by phone, communicating with the other party through their agent, usually.

Today, on the other hand, sellers sell their homes without agents (FSBO), and buyers search for homes on the Internet rather than letting an agent take them around to the available homes in the area.  Some homes are foreclosed on and sold by the bank, while others are sold by the owner for less than what is owed (short sales).  REO homes is another term that has come into widespread use lately — REO means “real estate owned,” and referred to homes that have been foreclosed on and are now bank owned homes.

In today’s real estate market, the Internet is taking an increasingly more important role.  A great example of this is time limit bidding.  Basically, time limit bidding is a sale on a house where buyers can bid on a home.  Much like an eBay auction, there is a date and time when the bidding will end.

It is not always as simple as the highest bidder getting the house, though.  Just like in some eBay auctions, there is usually a reserve price in time limit bidding, to ensure that the house will not sell for less than the seller can afford to take.  The highest bidder is only the winning bidder if the reserve price has been met.

Also like some auctions, many properties in time limit bidding also have a price at which the house can be purchased outright, ending the bidding.  This amount is usually higher than the reserve price.

Although its differences from traditional real estate transactions may make some sellers and buyers skeptical, time limit bidding is actually extremely useful for certain sellers and buyers.  For instance, it is a great model for bank owned properties, where the bank needs to move properties quickly but doesn’t want to take too little for a home, as could happen in an auction without the reserve feature.  Buyers can also use time limit bidding to find a good deal on a home, and to help them ensure that they don’t pay more than they set out to.  Furthermore, the online format makes it easy for sellers to reach a wider audience — and for buyers to browse a larger selection of potential homes.

Know more on:home foreclosure listings

It seems like it has been a very long time since we heard any good news about the housing market. For years, the real estate market has been suffering and homeowners have been suffering along with it. However, we’re finally starting to see a glimmer of hope on the horizon. There are indications that the housing market might finally be healing. If that is true, now could be the perfect time for potential homeowners to take advantage of the changes and purchase a home.

One big indicator that the housing market is healing is that prices on homes have stopped declining. For years, prices just seemed to creep lower and lower. People were forced to sell their homes for a fraction of what they paid for them because they couldn’t hang on to them any longer. This decline finally appears to have leveled off in most areas. This suggests that we’re on our way to turning things around.

Another good sign for the housing market is the fact that mortgage help and tax credits have both become more widely available to potential homebuyers. People who are interested in buying a home now are in a position to receive the support that they need in order to make this type of big purchase. As this support continues to fall into place, more and more people will be interested in buying homes. As that happens, bidding wars on low-priced homes will flare and home values will rise again.

If you’re interested in using housing trends to your advantage then it is important to pay attention to the fact that the housing market seems to be on the rebound. Now is the time to consider purchasing a home. If you wait too long then prices will have climbed again. It is unlikely that home values will continue to decline in most areas throughout the nation so it doesn’t make sense to hold out any longer if you’ve been thinking about buying a home.

Your best bet for getting a great price on a new home right now is to look at bank owned properties. These are repossessed homes that are owned by banks and are now up for sale. They are available at very low prices because the banks are eager to get rid of them. Purchasing one of these homes now means that you get the lowest price possible on a home to live in. As the market continues to heal, the value of your home will rise and you should be able to turn a tidy profit on the future sale of this home.

Know more on:foreclosed homes for sale and Reo foreclosure homes