All Forum Posts by: Freeman Schultz

For the landlords who have garages and driveways what measures do you put in place to protect yourselves from

tenant who try to sublease space or allow non-tenants to park in their spaces. Do you require them to provide proof of insurance

and registration?

Thank you for replying to my post.

In regards to your focus on essential workers, that makes a lot of sense. It is another way to minimize risk.

Thank you for responding to my post. Your requirements are the gold standard.

Just to clarify by what I meant by change is that I have been hearing is that landlords/property managers are

tightening  their requirements.

Of course the credit report and background are always required, however I have heard some landlords are looking more closely at employment history, income and debt. They are also checking if the applicant is essential worker.

A year ago, good credit, employment history, income would be enough or at least a good start. But that has all changed now.

Just out of curiosity, have any of you changed your requirements for new applicants?

I have heard that some landlords/property owners have been changing their requirements.
The general feeling is that they need to make changes to the application process to reflect the current uncertainty.  They are taking a morelcloser look at the applicant's employment, salary and other finances.

Thank you for your response. Ok. I thought they were the same thing. Appreciate you clearing them up. Yes. I am asking about a balloon.

What you said about the lender makes sense because my understanding is that these loans are not standard so the requirements are different

for each type of loan.

How early do mortgagors contact the lenders or do they just wait when the mortgage is maturing? Or does it depend on the lender?

I am assuming for the mortgagor it is best to start the process as early as possible.

Thank you again for your response.

I do understand the basics of a mortgage. But from what I have read online about jumbo mortgages is that they are for a shorter period of time and once the period ends, the principal is due. Maybe I read it wrong. Are jumbo not short term mortgages? When they reach maturity date is the principal due or the rate just changes?

Thank you so much for responding to my post.
I am a bit of a newbie when it comes to real estate investing. I am reading about mortgages and from what I have read about jumbo and I am just curious about the process of when they reach maturity. I have been told that mortgages are usually satisfied by either refinancing or the property is sold. Jumbo mortgages are different animal altogether because after a short period of time, that principal is due.

I have been researching jumbo loans and I understand how they generally work. But they raise some quesitons.

1. When does the lender contact the mortgagor regarding the principal? A year before the maturity date or the month when the principal is due?

2. How early does a mortgagor usually begin the refinancing process before the maturation date?

When a mortgage starts to approach its maturity date what is the process for the principal to get paid off?

Does the bank contact the holder of the mortgage or is that the responsibility of the holder?

How soon does the holder the mortgage begin the refinancing process?

If the holder is unable to refinance and is unable to pay the principal, how soon do they have to put the property on the market?

For an owner occupied building, do owners pay rent to themselves or do they waive it? Are there any tax benefits or liabilities of doing either? Is it easier for an owner to pay rent to themselves in terms of accounting?