Requirements for Financially Distressed Homeowners - Shorting Your Own Property

Hi Friends,

We have been getting so many emails from homeowners and investors who are in trouble. Many of you are wanting to do your own short sale. Here are some guidelines to help...

Assuming you are at least one payment late, we’ll qualify you under financially distressed homeowners. In the next section, we will talk about what to do if you haven’t missed any payments yet.

The number one thing the bank always requires is proof that your story is true. Anyone can call and state that they can’t afford their house anymore and that they want to walk away from it. With proof, banks can be surprisingly easy to work with. Here are the cold, hard facts that the banks have to consider:

 Markets are down.
 It is taking months to sell properties.
 Property values have dropped over 30 percent in most states.
 Insurance rates are rising.
 Taxes are going up.
 Gas is out of control.
 Interest rates are up.
 Payments are resetting at record increases.
 Unemployment is high.
 Bankruptcies have never been higher in our countries history.
 Banks are painfully aware that these circumstances can lead to increased foreclosures.

If you are behind in payments, but not yet in foreclosure, a short sale is definitely possible. You’ll start by contacting the work-out department. Your property would not yet be in the loss mitigation department. Typically, loss mitigation comes into the picture once the foreclosure paperwork has been filed. People are often confused about what a foreclosure is and what a pre-foreclosure is. Here is how we classify the terminology:

 A pre-foreclosure is a property where the payments are late, but the foreclosure papers have not been filed.
 A foreclosure is a property where the foreclosure papers have been filed, but the homeowners still own the house.
 A bank-owned property is where the payments were late, the foreclosure papers were filed, the house went to the sale, and the bank now owns the property.

Many people consider a foreclosure a property that already went through the entire process and is now owned by the bank. We want to make sure you use the proper terminology so that when you are reading the papers, watching the news or talking to loss mitigation, you know what everyone is really talking about.

Since financial hardship typically does not happen overnight, gather information from the past two years. Typically, a homeowner begins by missing a payment here and there: being 30 days late on a mortgage payment, missing an insurance payment, being late on a credit card, paying two months of electric at once, and so on. Once the foreclosure is filed, things seem to spin out of control. This is why we want you to gather information from the past two years. It shows the unravel of your finances.

If you are an investor and bought properties at the top of the market, find articles that show the beginning of the market decline, when your tenants moved out, copies of late payments and all of the other items we mentioned above.

Since you are financially distressed, again, proof is your best bet. Start putting your “Proof of Hardship Package” together. The last chapter in this section has a complete hardship package that we have put together for you – letters, websites, forms, and so on. Some of the information we can’t put together for you; it is information only you can provide. Here is a list of information you will need. Gather and photo copy as much of these items as possible:

 Two years of tax returns that show your income has dropped.
 Copies of lay-off notices or proof that you were let go.
 Copies of late electric bills.
 If you are involved in a divorce, provide proof.
 Copy any medical bills you have had in the past two years.
 Articles of market declines in your area.
 Copies of any investment properties you bought that have dropped in value.
 Proof of empty rentals.
 Proof of any rentals that were trashed by tenants.
 If you are not getting child support, show proof.
 Write a letter explaining your hardship – a sample letter is in the last section of this chapter.
 If you or anyone in your family has been to counseling, show proof. Counseling shows emotional distress.
 If there is a probate situation, get a copy of the death certificate.
 Copies of your bank statements – savings and checking. We are assuming that your cash flow is very low right now. If the bank sees that you have cash, it will want it.
 If you have tapped into your 401 or any retirement fund, show that as well. We are going to talk about this later – not going broke over a property.
 If you have cashed out a life insurance policy to make mortgage payments, show proof.
 Maybe you have used the college fund to keep up with the mortgage payments.
 If you have pawned something, show proof.
 If you are in jail or know the owner of any property who is in jail – definite hardship.
 If you have refinanced any property and used the money to make mortgage payments, show proof.

We’re sure you get the idea. The more financial hardship you can prove, the deeper the short sale. The deeper the short sale, the easier it will be for you to sell the property and start over.

* Something to remember – whether investor or homeowner – whether in distress or not – once a bank accepts a short sale, you must sell the property. The bank wants the property off the books.

We hope this helps. The most important thing to remember is that the banks are in just as much trouble as you are...

Have a Blessed Day,

Dwan
www.theieu.com

FREE Government Money

Good Evening Friends,

My friend, Chris Johnson, specializes in how to get free government money. He graciously provided these web sites. See if anything will help you - there is money for houses, rehab, foreclosures, down payments, rent, and so much more. In today's market, even investors are in big trouble...

Government Programs to Aid Owners in Distress

In order to get help from the government, you’ll need to start in the white pages. There are many agencies that offer emergency payments for electric bills, water, mortgage payments (more difficult on an investment property), food, diapers, baby milk, insurance, doctors, and much, much more.

The downside to using a government organization is that the red tape can take so long. If you need emergency assistance, you might not have 30 days to wait.

Most individual cities have local government funding. These departments are given a budget each year and if they don’t use the entire budget, they lose it or it is reduced.

There are also grants for home repairs – handy for investors – down payments on another property, closing costs grants, and many more. With most grants you have to live in the property for at least two years and then the money becomes free. If you move or sell before then, you have to pay the money back.


We have a very good friend, Chris Johnson, who specializes in free government money. Chris was very generous to provide these sites for you. For more information, contact him at www.ChrisFreeMoneyJohnson.com – he is happy to help in any way possible.

FINANCIAL RELIEF

Soldiers' and Sailors' Civil Relief Act
www.defenselink.mil/specials/Relief_Act_Revision/

If you are a reserve component service member called to active duty, you may qualify for any or all of the following:
• Reduced interest rate on mortgage payments
• Reduced interest rate on credit card debt
• Protection from eviction if your rent is $1,200 dollars or less
• Delay of all civil court actions, such as bankruptcy, foreclosure, or divorce proceedings
Housing Choice Tenant-Based Voucher
www.hud.gov/offices/pih/programs/hcv/tenant.cfm

This program enables a family to choose housing, then rental subsidy payments are made to the owner to subsidize occupancy by the family.

Low Income Home Energy Assistance Program
http://liheap.ncat.org/sp.htm

LIHEAP offers one-time financial assistance to qualifying low - income households who require support in paying their home heating or cooling bills.

Trade Readjustment Allowances (TRA) Income Support
www.doleta.gov/tradeact/benefits.cfm#6

Trade Readjustment Allowances (TRA) provide income support while you are participating in full time training.

Rural Housing Rental Assistance Program
www.rurdev.usda.gov/rhs/

Rent subsidies under the Rental Assistance Program ensure that elderly, disabled, and low-income residents of multi-family housing complexes financed by HCFP are able to afford rent payments. With the help of the Rental Assistance Program, a qualified applicant pays no more than 30 percent of his or her income for housing.

Earned Income Credit
http://www.irs.gov/individuals/article/0,,id=96406,00.html

The Earned Income Credit (EIC), is a refundable federal income tax credit for low-income working individuals and families. When the EITC exceeds the amount of taxes owed, it results in a tax refund to those who claim and qualify for the credit.

Farm Loan Programs
www.fsa.usda.gov/FSA/webapp?area=home&subject=fmlp&topic=landing

FSA makes direct and guaranteed farm ownership and operating loans to family-size farmers and ranchers who cannot obtain commercial credit from a bank, Farm Credit System institution, or other lender. FSA loans can be used to purchase land, livestock, equipment, feed, seed, and supplies. Their loans can also be used to construct buildings or make farm improvements.

Scholarships for Disadvantaged Students
http://bhpr.hrsa.gov/dsa/sds.htm Mortgage Relief

The Scholarships for Disadvantaged Students program provides scholarships to full-time, financially needy students from disadvantaged backgrounds, who are enrolled in health professions and nursing programs.

State Financial Assistance Programs

States have their own funding for their low-income or unemployed residents. The guidelines and rules vary from state to state, so check to see what your state offers:

Alabama - www.dhr.state.al.us/page.asp?pageid=359
Alaska - health.hss.state.ak.us/dpa/programs/atap
Arizona - www.de.state.az.us/faa/appcenter.asp
California - www.dss.cahwnet.gov/foodstamps/PG839.htm
Colorado - www.cdhs.state.co.us/coworks/
Connecticut - www.dss.state.ct.us/svcs/tanf.htm
Delaware - www.state.de.us/dhss/dss/tanf.html
District of Columbia - www.dhs.dc.gov/dhs/cwp/view,A,3,Q,492411.asp
Florida - www.dcf.state.fl.us/ess/tanf.shtml
Georgia - dfcs.dhr.georgia.gov/portal/site/DHR-DFCS/
Hawaii - www.realchoices.org
Idaho - healthandwelfare.idaho.gov/portal/alias__Rainbow/lang__en-US/tabID__3328/DesktopDefault.aspx
Illinois - www.dhs.state.il.us/page.aspx?item=30358
Indiana - www.in.gov/fssa/families/tanf/index.html
Iowa - http://www.govbenefits.gov/ExternalLinkPageFlow/ExternalLinkPageFlowController.jpf?&url=http://www.dhs.state.ia.us/PolicyAnalysis/PolicyManualPages/Manual_Documents/Forms/470-0462.pdf
Kansas - www.srskansas.org
Kentucky - https://apps.chfs.ky.gov/Office_Phone/index.aspx
Louisiana - http://www.govbenefits.gov/ExternalLinkPageFlow/ExternalLinkPageFlowController.jpf?&url=http://www.dss.state.la.us/departments/ofs/Family_Independence_Temporary_.html
Maine - www.state.me.us/dhs/bfi/tanf/TANF.htm
Maryland - www.dhr.state.md.us/how/cashfood/tca.htm
Massachusetts - www.mass.gov/dta
Michigan - www.michigan.gov/fia/0,1607,7-124-5453_5526_22957---,00.html
Minnesota - http://www.govbenefits.gov/ExternalLinkPageFlow/ExternalLinkPageFlowController.jpf?&url=http://www.dhs.state.mn.us/main/idcplg?IdcService=GET_DYNAMIC_CONVERSION&RevisionSelectionMethod=LatestReleased&Redirected=true&dDocName=id_005325
Mississippi - www.mdhs.state.ms.us/ea_tanf.html
Missouri - dss.missouri.gov/fsd/tempa.htm
Montana - http://www.govbenefits.gov/ExternalLinkPageFlow/ExternalLinkPageFlowController.jpf?&url=http://www.dphhs.state.mt.us/about_us/divisions/human_community_services/additional/tanf_eligibility.htm
Nebraska - www.hhs.state.ne.us/fia/adc.htm
Nevada - http://www.govbenefits.gov/ExternalLinkPageFlow/ExternalLinkPageFlowController.jpf?&url=http://dwss.nv.gov/index.php?option=com_content&task=view&id=122&Itemid=319
New Hampshire - www.dhhs.nh.gov/DHHS/TANF/default.htm
New Jersey - www.state.nj.us/humanservices/dfd/dfdcwa39.html
New Mexico - www.hsd.state.nm.us/isd/fieldoffices.html
New York - www.otda.state.ny.us/main/ta/
North Carolina - www.dhhs.state.nc.us/dss/ei/ei_hm.htm
North Dakota - http://www.govbenefits.gov/ExternalLinkPageFlow/ExternalLinkPageFlowController.jpf?&url=http://lnotes.state.nd.us/dhs/dhsweb.nsf/e486bc94591422b58625662c007143ec/33755491882e73ec862566730069c62e?OpenDocument
Ohio - jfs.ohio.gov/localservices/
Oklahoma - www.okdhs.org/programsandservices/tanf/
Oregon - www.oregonhelps.org/
Pennsylvania - www.dpw.state.pa.us/About/OIM/003670281.htm
Rhode Island - www.dhs.state.ri.us/dhs/dfipref.htm
South Carolina - www.state.sc.us/dss/contact.html
South Dakota - www.state.sd.us/social/TANF/index.htm
Tennessee - www.state.tn.us/humanserv/st_map.htm
Texas - https://www.yourtexasbenefits.com/wps/portal
Utah - www.utah.gov
Vermont - www.dcf.vermont.gov/esd/reach_up
Virginia - www.dss.state.va.us/form/index.html#financial
Washington - www.workfirst.wa.gov/
West Virginia - www.wvdhhr.org/bcf/family_assistance/wvworks.asp
Wisconsin - www.dwd.state.wi.us/dws/w2/default.htm
Wyoming - dfsweb.state.wy.us/districts/base2.htm

MORTGAGE RELIEF

HomeFree-USA “Save A Family” Foreclosure Prevention Fund
www.homefreeusa.org/ht/d/sp/i/4943/pid/4943

Thousands of American families face threats to their homeownership every day. Unemployment, illness, and predatory lending practices threaten the most valuable investment that a homeowner can possess, their home. On average, five families call HomeFree-USA for help every day. As a HUD approved housing counseling agency, HomeFree-USA is required to help these at risk families with no charge to them.

In some cases, they need help to pay the mortgage for a month or two. In other cases, they need an advocate and assistance with their lender to forestall foreclosure. In all instances, a significant amount of time and/or money must be spent to ensure a positive outcome.

With more than a decade of experience and a 0 percent foreclosure rate, HomeFree-USA has the knowledge, experience and willingness to help at risk families to successfully protect their homes.

To help with the financial aspects of saving a family, HomeFree-USA has established the “Save a Family” foreclosure prevention fund. HomeFree-USA solicits contributions to this fund to offset expenses related to saving a family from the pain and degradation caused by the loss of a home. These expenses may include funding to ensure that at risk families have basic necessities such as goods and clothing as well as housing.

Home Equity Loss Prevention Program (HELP)
www.acornhousing.org/TEXT/fap8.php

If you are behind on your mortgage, ACORN housing counselors may be able to intervene on your behalf with your lender in order to come to a resolution that will ultimately bring your loan current. The HELP program has established relationships with 43 major lenders in the U.S. in order to get loans out of foreclosure. Recently, they assisted over 4800 families in working out repayment plans, forbearance plans, loan modifications, refinances and partial claims, which allowed these families to keep the equity that they built in their homes.

Mortgage Relief Fund
www.mortgagerelieffund.com

The Mortgage Relief initiative has grown from five regional banks to nearly fifty banks of every size, with branches throughout much of New England. The participating banks represent a safe and sound place to discuss your credit needs and financial situation, with expertise and respect.

Whenever possible, the banks participating in the initiative will help eligible homeowners refinance into conventional loans that will better meet their needs. The banks aim to help homeowners who are having difficulty making payments (or expect to) because of high-rate, nontraditional, or resetting loans.

Hope Now Alliance
http://www.hopenow.com/members/members.html

The Hope Now Alliance is a cooperative effort between the US government, counselors, investors, and lenders to help homeowners who may not be able to pay their mortgages. Created in response to the subprime mortgage crisis, the alliance claims to have helped over one million homeowners avoid foreclosure.

Housing Partnership Fund
www.housingpartnership.net/lending/housing_partnership_fund/

The Housing Partnership Fund is a CDFI-certified lending affiliate of the Housing Partnership Network that provides members with short-term, equity-like financing for affordable housing rental and ownership development.

The Fund's loans, which offer terms of up to three years, generally bridge public subsidies that are not committed at the time of acquisition.

USDA Centralized Servicing Center (CSC)
www.rurdev.usda.gov/rhs/sfh/bor_sfh.htm#What if I have financial difficulties?

To improve service and cut taxpayer costs, USDA Rural Development created the Centralized Servicing Center (CSC), which uses an automated system to expand benefits to new and existing home loan borrowers nationwide. The CSC services all USDA Rural Development single-family housing loans.

Veterans’ Mortgage Relief
www1.va.gov/opa/pressrel/pressrelease.cfm?id=1514

Hope this helps some of you...

Have a Blessed Day,

Dwan
www.theieu.com

Short Sale Deal Coordinating Sheet

Good Evening Friends,

When we work on more than one short sale, we use this form to keep track of who everyone is. When working on 15 or 20 short sales at once all the different people seem to run together. You will find this form helpful, especially if this is your first short sale. Whether you do just this one, are a full-time investor now, or decide to help homeowners for a living, keeping track of the different players, the different calls, faxes, emails, and more is crucial to your deal. You certainly don’t want to call loss mitigation and forget where you are in your deal.

Date: ____________________________
PROPERTY ADDRESS: _____________________________________________
_______________________________________________________________
PURCHASE PRICE $_______________________________________________

Listing Agent: __________________________________________________
Email:___________________________________________________________
Cell Ph:___________________ Office Ph:_______________ Fax: _______________

Buyer’s Agent: __________________________________________________
Email:________________________________________________________________
Cell Ph:__________________ Office Ph:_______________ Fax: ________________

Owner or Seller: ________________________________________________
Email:________________________________________________________________
Cell Ph:__________________ Office Ph:_______________ Fax: ________________

Short Sale Bank Name(s):_________________________________________
Email:________________________________________________________________
Cell Ph:__________________ Office Ph:_______________ Fax:_________________

End Buyer:_______________________________________________________
Proof of Funds: _______________________________________________
Email: _________________________________________________________
Cell Ph:__________________ Office Ph:______________ Fax:_________________

Closing Information:

Title Company #1: _______________________________________________ Contact:_________________________________________________________
Office Ph:________________________ Fax: _________________________
Email: _________________________________________________________

Buyers Mortgage Broker/Lender: __________________________________
Cell Ph:______________________ Office Ph:________________________
Fax:_______________________ Loan info: __________________________

Sellers Lender: _________________________________________________
Cell Ph:__________________________ Office Ph:____________________
Fax:_____________________________ Loan info: ____________________

Real Estate Commissions Due:
Realty & Fee: ___________________________________________________
Assignment Fee: _________________________________________________
Consulting Fee: _________________________________________________

BACK UP OFFERS: _________________________________________________
Straight Sale: __________ Assignment: ___________ Double Closing: ____________
Closing Date:___________ Time:________________ Location: _________________
 

Hope this helps you...it does us..

Have a Blessed Day,

Dwan

How To Aggressively Sell Your Property In Today's Market

Good Evening Friends,

We have been traveling around the country all summer and have run into an astounding number of people in financial trouble - investors and homeowners alike. If you are in trouble and need to sell, here are some great tips that will help...

Whether an investor or a homeowner in distress, selling your property is always going to be your best option. If it sells before the sheriffs sale (the foreclosure sale date) you won’t have a final foreclosure on your credit report. Your credit report will reflect that a foreclosure was filed, but that it was solved before the final sale date. It does help your credit when starting over.

If you are an investor who owns several investment properties, selling them will help a lot. Having ten foreclosures is hard to recuperate from. You might be better filing bankruptcy and wiping the slate clean.

Let’s cover aggressive ways to sell your property. If this does not work, we have many other options for you – a short sale, deed in lieu, renting, and much more – so please keep reading.

Financially Distressed Owners Who Can’t Sell Their Property

You’re in foreclosure or behind in payments and have made the decision to sell. You may still be experiencing a hard time emotionally, but you are one-step closer to getting back on track and getting on with your life.


Before you call a real estate agent and list your house, try a few other options first:
* Place an ad on www.craigslist.com
* Place an ad on www.ebay.com
* Place an ad on www.loopnet.com
* Place other ads on any “For Sale By Owner” site you can find

If you have a $200,000 property, you could save $12,000 in real estate commission, which means you can sell the house for less. We suggest trying to sell your property yourself only for 30 days. If you get no bites, consider listing it.

To determine what your house is worth, look on www.zillow.com for comparable sales. Zillow is a free service that offers comps. Remember, you are facing hardship so sell the house for a low as possible to unload it. Now is not the time to get greedy and look to make a profit. Now is the time to move is as quickly as possible before you lose it.


Here are a few sample ads that have worked great for us:

2/1/cp. Seller desperate. Will pay cc. New w/d, c/h/a. 555-5555 $99K

4/1½/1. c/h/a. New everything. Motivated seller. Will pay cc.
555-5555 259K OBO

3/2/1. seller will pay costs. Newly remodeled. Need to sell. w/d/c/h/a. 349K
555-5555

Bring your toothbrush, 3/2 spotless & ready for your family $99,700 Desperate Seller! 555-5555

Low down, Seller will help" - 3/2 Dollhouse, needs nothing but your furniture. Seller will help. $57,400 555-5555. OBO

Low down, low monthly to qualified buyer. Seller will help. 2/1/1,fcd yd, fm rm. $69,900, 555-5555

You pay for each line when running ads so abbreviate everything. The goal is to put as much information in the ad as possible. Look at ads in your local papers to get a feel for what they abbreviate. The person taking the ad should help with this. Most papers will allow you to place an ad and will bill you in 30 days. This helps cut immediate costs. Here are what some of the abbreviations mean...

3/2/1cg = 3 bedroom, 2 bath, 1 car garage
2/1/cp = 2 bed, 1 bath, carport
4/1½/1 = 4 bed, one and a half baths, 1 car garage
fc yd = fenced yard
fm rm – family room
OBO = or best offer
CC = closing costs
w/d= washer/dryer
c/h/a= central, heat, and air


Notice in our ads we state “seller desperate” or “motivated seller” or something along those lines. This will cause your phone to ring. The more calls you get, the better your chances to sell your property quickly.

Don’t be embarrassed to use these words in your ads. You want your phone to ring and other people are always looking for a good deal and it will generate interest.

* Always advertise your property as far below market as you can to sell it before the foreclosure goes any further.

If properties are selling for $150,000, sell yours for $129,900. Again, the goal is to sell your house as quickly as possible. The lower the price; the more buyer’s who will show interest. Even if you have 20 houses in your neighborhood that are for sale, do not let this intimidate you. Yours could be the perfect house for someone else and might sell the first day.


If, after 30 days of trying to sell it yourself, no one has shown any interest, consider listing it with a real estate agent. Real estate agents will also run comps and give you their opinion of value, have you sign a listing agreement, and put it on the market. Since many people looking to buy a house use an agent, it might prove worthwhile.

The downside to listing your house is that most people who use agents look for new listings. Once another 30 days had passed, your listing will be old and will get very little attention. Also, many agents take as many listings as possible just hoping that one will close and don’t put much effort into the actual selling process. They rely on agents who show houses to sell their listings. You have listing agents and selling agents. Look for a selling agent.

Take time to interview an agent. Ask how many listings they took in the last six months and how many of their own listings they sold. If they took 25 listings and didn’t sell any, your house won’t sell either.


There are many reasons your house might not sell in time to beat the foreclosure sale:
* You owe more than your house is currently worth.
* It needs too much work to sell it retail.
* You are in one of the many areas that is very depressed.
* Industry is moving out of your area and there are no jobs.

If any of these situations apply to you, we have a possible solution – a short sale. We will talk about short sales a little later, but the jest of it is this:

* A short sale is where you negotiate with the bank to accept less than what you owe against your property as full payment. For example, you have a house worth $100,000, you owe $100,000 and are facing foreclosure. You call the bank, ask them to do a short sale, they agree and they accept $60,000 as a full payoff. Now you can sell your house below market and get out of foreclosure. Banks will short sale investment properties, too.

Many times a real estate agent can list your house and in the “special clauses” section of the listing agreement put the words - “Bank will accept a short sale. Bring all offers.” The agent then takes any offer given and presents it to the bank. The bank will then decide to either accept or pass. Because of the millions of foreclosure that are predicted, banks are doing more and more short sales everyday.

I hope this helps...

Have a Blessed Day,

Dwan

Top Notch Landlord Tips from Mr. Landlord

Hi Folks,

Wow - sorry I have not been on for a week or so. We arrived in Iowa to get our amazing space ready for our training classes and we had some flooding issues. It has been a mess trying to get things ready.

With the help from many people - we are about ready to roll....

My friend, Jeffery Taylor, is know as Mr. Landlord. He is one of the nations top experts on how to maximize rent and keep happy tenants. I wanted to share his tips this month. I love the one about the "dog run" - what a great idea.

From time to time - I am going to share tips from others in the industry. Jeffery has a fantastic newsletter you should subscribe to...

MRLANDLORD.COM TIPS ON MANAGEMENT

USE A LIMOUSINE TO FILL VACANCIES - One Michigan rental owner said one of the most popular strategies to fill vacancies was to use a Limousine. The owner bought a limousine no longer in use at a big discount. Then he advertised the fact, the limousine was an exclusive bonus perk available to those who rent his properties. Residents could “hire” out the limousine for practically nothing (just the minimum cost of paying a low hourly fee to the driver). Prior to the “limousine” advertising, the owner had a 20% vacancy rate. Now the owner has a waiting list.

EVER THOUGHT OF BUYING A USED U-HAUL? - A Missouri landlord bought an out-of-service U-haul truck to offer as an extra perk to rental applicants and new residents. The used truck was bought for just a few thousand dollars. When applicants are applying, the landlord makes mention of the fact that he can offer them free moving assistance with a truck. This perk definitely gives the landlord an edge over his competition. Obviously the truck also comes in handy for general maintenance use in the landlord's normal rental operation, transporting carpet, appliances, etc when needed. And if a resident goes sour, the truck can be used to assist in helping a problem resident get moved out of the property so that it can be more quickly turned around and ready for the next resident. Depending on the circumstances, the move-out assistance however, may or may not be offered for free.

OFFER DOG RUN AS A SERVICE UPGRADE - A Southern California rental owner shared what he offers pet-owning residents as a service upgrade. He offers to put up a fenced in Dog Run. His dog-owning applicants love the idea and are willing to pay an extra $45 per month for this upgrade. Residents who desire this added service upgrade sign an additional service agreement which permits the owner to increase his income even in a rent-controlled area. The landlord also loves the added benefit that with the addition of the Dog-Run, there is less wear and tear and less property destruction to the property by the dogs that are now in a fenced area.

GOOGLE THEM! - When screening rental applicants, consider using both Google.com and MySpace.com. To do so, start by asking for email addresses on the rental application. Sometimes a red flag can be raised by the email address that some applicants use. For example: hotmama@escortservices.com or pothead@xxx.com. Google not only the email address, but also google the applicant's name and phone number.

In regard to MySpace, you want to see if applicants have a MySpace account. More and more rental applicants have one, as many as one third to half or more depending on your target market, especially if you rent to those in their 20s. By checking MySpace, you can often learn interesting tidbits about the applicant’s lifestyle, hobbies, pets, work and more. To search MySpace, go their home page, click the Search link which will allow you to search by name or email address. Google and MySpace are just two more tools that a landlord can take advantage of using when screening rental applicants.

STRESS IMPORTANCE OF ON-TIME PAYMENTS - Explain your rent collection policy to all new residents before they move in. Have this policy in writing, and stress the seriousness of prompt payment. Remind new residents that late payments may affect their credit rating. Have the new resident circle and initial the lease section that says rent due on the 1st. Because many owners offer grace periods, residents may think rent is due on the 5th. Consider, if your state permits, not providing a grace period. “Rent is due on the first with a $XX late charge on the second.” Sounds tough, but it works! But you must enforce late charges. Threatening late charges but never enforcing them only causes more delinquency. The residents will see you as all “bark” and no “bite.” If you clearly communicate the rent collection policy before move-in and reinforce your conversation by giving new residents the policy in writing, then they will believe and expect you to enforce the policy.

Move quickly on delinquencies. All residents who have not paid by the first must be sent notification on the second. If the resident says, “It’s in the mail,” ask for a substitute check and return the mailed check when it arrives. Again, the key is acting immediately. Demonstrate an expectation to every resident that you know they will pay rent on time. When a resident is late, be understanding, but make it clear to the resident “We want the rent, and we want it now.” Do not accept excuses nor negotiate with the resident to catch up next Friday. One possible option for stimulating payment of rent is the "emergency contact". Hopefully your rental application gives you permission to contact all "emergency" references in case of non-payment. If so, notify the resident’s emergency contact if rent is not paid on time. Yes, our residents sometimes have legitimate financial problems. Job lay offs, car troubles, or medical emergencies can really put some of your great residents in a financial bind. Yet, your obligation to your family is to collect ALL the rent remains. The ethical thing for you to do is aggressively go after full payment and late charges. Your response to the delinquent resident should be, “Sorry you were laid off from your job, but your rent is due now. Let me suggest the following options.” 1) Ask for a loan from family or friends. 2) Use a credit card for a cash advance, 3) Take money out of savings or retirement fund, 4) Contact your church or some other agency to see if you can get help.

If a residents pays, but pays a couple of days late, remind the resident of the actual due date and asses appropriate charges if they were not included. Say something like, “We really appreciate your rent, but since it was paid after the due date, the following amount is now immediately due to avoid eviction proceedings. Thank you!” Be aware of all residents who are delinquent. Do not harass or embarrass the delinquent resident, but be firm with your policies. Do not entertain options that do not include the resident paying the rent ASAP. If you negotiate and let the resident off easy, the real loser is you! And never use the eviction as an empty threat or a mere collection strategy. When you start to evict, go through with the process. These tips are from excerpts and tips shared on MrLandlord.com website and in the Mr. Landlord newsletter. To receive a free sample of the newsletter, call 1-800-950-2250 or visit their informative website at MrLandlord.com and register to win a free landlording book.

Great tips Jeffery...thanks for sharing with us..

Have a great day Friends...

Dwan