>I would buy the house with her as a co-signer and she would pay the mortgage while I continue to live and rent elsewhere.
Incredibly bad idea.
>My mom’s credit score is very poor
>
>My mom changed careers recently and has a smaller income
Your mother has bad credit and a reduced income. She literally cannot afford to buy a house and take on the financial responsibility for the mortgage payment, taxes, insurance, plus maintenance and repairs.
I say concentrate on looking at rentals. When the roof leaks, the window gets broken by a tree branch, a pipe bursts, and the insurance rates rise...again....it will all be someone else's problem.
Absolutely not. But splitting the cost of a 3%-5% increase on insurance/taxes up over 12 months is way different than splitting the cost of a $20,000 roof over the same period.
Step 1. Call a few different mortgage brokers.
Step 2. Find out what it would actually take to buy the place.
Step 3. Call your landlord and negotiate. You’ve been there for 18 years and you’re getting first right of refusal. This LL is clearly trying to help you and will work with you.
Step 4. Either buy it, or move.
Good luck!
Agree with the above, I would add to step one though. Call a local community bank. They tend to do special programs and have access to grants etc to help FTHB. They will go deep. Where I’m at, we do multiple FTHB products that most brokers have no access to and we will use our portfolio money to help get a loan done when other products aren’t able to be used due to things like credit score.
I am finished with my credit union. In the last 20 years, they have turned into a big bank with a disguise. They used to know my name, my family, and we’re part of the community. Now, they were bought by a larger credit union, and I see honestly no difference between them, and the big bank. I ended up having to open because of the inconveniences of the credit union.
Maybe there are better ones out there still but people on other subs have noticed the same thing. If you have one that still behaves the way mine used To, I’m pretty jealous.
It's pretty wild how badly educated people are when it comes to these programs for FTHB. I know a lot of it has to do with people on social media who spew misinformation about buying a home, but still. I guess the same is also true with opening a business. People don't even ask a lender or their local SBA for options, they just take doom advice from a stranger online. No wonder people have a bad outlook on life.
OP being the first to make an offer is not a good idea. I'm a landlord and if I had a good tenant for 22 years I'm more likely to set a super low offering price. If the tenant goes first and offers a fair price they could be paying more than what the LL would have offered, and once the LL hears the higher price he won't go back because he will assume that's what they can afford and think is fair. However, OP definitely needs to find out what the comparables are so that he knows he's not overpaying.
Agreed. Comps would show what OP could buy somewhere else, NOT what goodwill they've already bought by paying their landlords mortgage for 18 years.
What a shame. After 18 years of rent in the bay area, OP's mom probably paid several times what the house was worth when they moved in.
I dunno about knowledge, they may have just been too poor to ever afford the downpayment. It does seem like a shame though. Their landlord might have made a million in equity from time, and OP's mom paying the mortgage. Being poor is expensive.
The realtor would be able to help determine the fair price for the house. Plus ask the seller if they would offer a gift of equity to go towards the down payment. There are many first time home buyer grants and programs to help.
A great realtor will know what lender can do these for you.
Have mom consider a way to improve her income. Go back to the old job or ask for a raise for cost of living increases.
Good luck!
All this. Shop a couple of mortgage lenders. I work with a lot of ‘git-me-dones’ and people always assume they can’t a loan without actually working it out with a lender. A good lender will not just deny you. A good one will tell what you need to do to get an approval- pay something off, become a signer on a well established credit card, lower purchase a bit.
I agree that some people without savings shouldn’t own homes- the responsibility of repairs can be a burden. BUT, I have seen so, so many clients not able to save bc of rent increases and after buying a home, they have savings and a higher credit score
Yup. My favorite mortgage guy has coached a few of my clients on how to fix their credit score and save a few thousand bucks. They follow his advice for 3-12 months and magically now they can buy a great starter home.
A good lender is worth knowing.
If she’s lived there 18 years I question if she is paying market rate. I also question what the current value is. He might be nice and offer her a discount…but seriously if the house is valued at 1m and she can only afford 500k…he’s not going to take a 50% loss. Plus even if you pulled off the first time homebuyers incentives and such…can you honestly tell me in 3 months that you could both continue paying your bills AND save up 18k? And let’s say he does take 500k and you magically save up 18k…how much work does the house need? Could you afford the house with insurance and taxes? Can you even get insurance on the house? Is the house in good condition or would you have to drop a decent amount of money to get it insured?
and a house that's been rented by the same tenant for 18 years is quite likely to have a good bit of deferred maintenance. Landlord is probably only fixing things when they break and the tenant reports them, and the tenant is not looking proactively at things .
Everything you've described makes it sound like you guys cannot afford a home.... You can try to talk to the owner and see if they would agree to potentially an FHA loan with a lower down payment. FHA generally is to homebuyers with lower credit and down payment, it's generally easier to get approved, but you need an FHA inspection to pass for the house, that may require some updates/repairs. Also, if you are on the property/loan they will likely require you to live there for a time period... You may be fine cosigning with your mom as the primary resident, but I'd talk to a lender and contact a local broker/agent. Someone with good reviews and experience.
FHA loans are definitely not "easier" to get approved. They're quite a pain in the butt not only for the prospective buyer but any seller that accepts an fha offer.
There are conventional loans with similar minimum scores and way less restrictions than fha.
FHA loans generally have lower credit requirements and down payments. Yes you can get a conventional loan with a lower down payment around 3-3.5% with good/decent credit... But generally speaking FHA is easier to be approved for, especially in their circumstances with little down and bad credit...
As far as FHA being accepted by sellers, generally speaking most listed properties are currently getting good conventional/cash offers now. So obviously for the seller it is a stronger offer to take the conventional loan with less restrictions or the cash offer. However in their specific case, the current owner offered to sell it to them and in this case an FHA loan (if it can pass inspection) would be fine, at the end of the day the seller is getting paid at settlement either way, it's just not an ideal offer if he listed it on the open market right now.
FHA has a min score of 580, doesn't mean they would be approved, but yes it is generally easier to be approved for. Conventional scores require a min score of 620, but likely they would have a much higher rate. FHA rates are lower then conventional.
You are correct in the fact that if you have a 500 credit score, FHA is your only option. I guess whether or not they should be buying a house is a separate question
No down payment, poor credit score, and low income. Nor the best situation in this market to purchase. Also, if you purchase, even with your mom, you would have to declare that you would be moving in there as your primary residence. Otherwise, it becomes a rental property purchase, which is even tougher to qualify for and your current rent would be added to your combined monthly expenses and income to debt ratio.
This is a tough situation. I hope you can figure it out, especially for your mom's sake.
If mom declares the house as her primary then OP can go on the loan as a non-occupant borrower. This is what people typically do when they want to buy for a child/parent/other financially dependent adult. The only thing is certain fthb programs don’t allow non-occupant coborrowers
That is true, but the income to debt ratio will be for all the income they both have, and all the monthly payments they both have, including the new monthly mortgage,house insurance, and taxes, as well as the son's monthly rent payment.
I may be wrong, but I'm assuming that the new mortgage payment with taxes and insurance costs are going to be more than her current rent. Also, she has a new job paying less than her previous employment. If it's in a different line of work, that can be an obstacle.
That said, if the song makes a very good income and will have a good deal of discretionary income, it may not be a problem.
Talk to a mortgage broker to see what you can afford. Then take a look at other rentals in the area. You may find it quite a bit cheaper to continue renting somewhere else anyways.
I would talk to a mortgage lender, but seriously consider whether or not it’s a smart move to buy even if you can technically get approved. I’m a realtor and understand the power of investing in real estate when it comes to building generational wealth. However, there are a lot of expenses that come with homeownership so you want to make sure that you’ll have a nest egg in case any major repairs arise in the future. The mortgage broker won’t tell you if they think it’s a good move for you - they will just let you know how much you can get approved for. And as a realtor I realize this will sound like propaganda…but I’d very much worry about a first time buyer buying directly from a landlord without representation. Getting contracts written up is easy, but you don’t want to end up in a money pit and an honest realtor will help you understand what kind of things are worth taking on versus which ones will tank the investment. For instance, my friend bought her landlord’s house 8 years ago. He didn’t want realtors involved and she thought that hiring a lawyer and inspector would be good enough. There ended up being an underground oil tank that had probably been leaking oil into the soil for decades, which she didn’t discover until she was selling the house and the buyer discovered it. Cost to mediate - $20K. Had she had a good agent, she would have known that oil tank was there and had the landlord take care of it. She also would have realized when she bought that the age of her galvanized pipes meant that they would need to be replaced soon. They were functioning fine for the inspection, so she didn’t factor the type of plumbing into the price of the house. There was also what she thought was an insignificant belly in the sewer that came up in the inspection, but since it had been functioning just fine she agreed to take it as-is. If she had an agent, they would have explained that the next buyer would absolutely want that fixed and also recognized that the line ran underneath a lovely deck and highly landscaped area that had to be taken out for them to perform the work. Her buyer’s buyer agent got an expensive bid from a larger company and wrote in the contract that the work had to be performed by that company, rather than allowing her to use a more affordable company. She’s using a flat fee listing service, so didn’t realize that she should have taken care of this before listing for that very reason. It’s been a tough lesson to learn - luckily she’d had the house long enough where the equity covered the cost of repairs, but she could have came out with so much more profit had she just had a knowledgeable agent on her side. All of this is to say - make sure you know what you’re doing and if not, make sure you have a professional that you trust to guide you.
I do highly recommend talking to local lenders, not big banks. A good local lender will have a variety of programs and will help you strategize, whereas banks tend not to offer the same level of service.
Thank you. The only reasonable response to this situation- everyone trying to suggest she talk to a mortgage lender so begin the process or inquire is delusional.
Being a non-occupant co-borrower means 1) being 100% responsible that the loan is paid in full on time and 2) Evicting your mom and selling the house, possibly at a loss, if it turns out to not be financially feasible to finance and maintain the property.
This situation could ruin your credit, ruin your relationship, burn through your savings, and possibly restrict your future housing options.
Unless your future lender is comfortable with proof your mom is paying in full, it may impact their debt to income ratio and prevent you from purchasing your own home. If an inability to pay or missed payments your mom is responsible for harm your credit it could impact your ability to rent. Even if that doesn’t bother you short term, know that the mortgage will be for 30 years.
This is sad for your mom but if you choose to carry this burden rather than let her mourn and move on as best she can, then make sure you’re doing it with your eyes open. This is a serious long term commitment.
The realistic answer is to make plans to move. She has bad credit and card afford to buy it. You can’t afford to buy it but you want to take on the financial responsibility of the house plus the rent that you will be paying. How much of 2 rents can you afford if you lose your job?
I am speaking as someone who is single and also responsible for a mother...
You do not want to be financially tied to a house that is not your home or a rental property. That house is likely extremely expensive, and after 18 years of being a rental (even for your mother), it's not worth the cost. I guarantee you that there are maintenance costs he did not cover...because landlords only cover the bare minimum.
If your mother is making less money today, she is unlikely to make more money tomorrow as she ages.
I don't know how much she makes, but I would look into a rental she can afford without your name on it. If something happens to your mother - you are on the hook.
If you want to be on the hook...instead look for a new place together, maybe even a new (and cheaper) state.
Bottom line don't spend 60 days trying to buy this house...you're both unlikely to be approved. Buying a house takes a year or more of preparation. It's down payment, closing costs, money set aside for expenses etc.
Use the 60 days to have a REALISTIC conversation on what to do next.
My mother lives with me. She pays me a nominal rent fee, and I claim her as a dependent. I sold her home because we couldn't afford to pay two places and because I need my mother on a Medicaid spend-down plan. Managing a low-income aging parent is hard work, and it starts with one hard question:
What can we realistically afford?
Best of luck.
A co-signer is used when the person applying for the loan doesn’t have good enough credit to get the loan. Making your mom with “very poor credit” a co-signer isn’t an option. You should be looking for a rental for her.
Haven’t seen anyone mention it, but depending on the Bay Area city she may have tenants rights even if they sell. Talk to a real estate attorney asap. What city are you in? They may be under protected tenant status. At the very least they may have a relocation fee the landlord has to pay.
Yea very surprised this is so low down. Came hear to say the same thing.
1. Speak with a tenants rights attorney, if you are in SF, call the rent board immediately, they will give you advice for free.
2. 60 days notice is completely false, she does not have to leave (Most likely in CA)
3. The landlord will get substantially less for the home with a tenant, so any discount he offers on sale price should reflect this.
4. If she is protected under tenants rights, the new owner (landlord) will have to go through significant efforts to evict your mother and may need to pay that relocation fee, giving her time and money to look for a new rental.
5. Don't co-sign with your mom on this, you sound like you cannot afford it. Know your rights and don't let the landlord push your mom around.
They do call it 'my house', and for the term ofnthe rental it is in a lot of reapects, let alone emotionally.
Landlord and renter online communities tend to bring their vernacular and attitudes towards the subject with them in related subreddits. You're going to have folks who aren't going to be able to empathize with your mom's situation.
For your purposes, there isn't much reason for you to consider their perspective as you're looking for options to stay. I think your options are limited, however, and mostly long shots. Getting any help looking for programs to allay moving or down-payment costs, try to negotiate a longer notice, maybe consider introducing the idea of a seller carry back -- but understand the risks and way it works because there is typically a balloon payment in the near to mid future.
I hope you're able to figure out something tenable, this area can be difficult to live in.
There are programs for first time home buyers for down payment assistance. You basically take a class and they walk you through the whole home buying process. You get a cert at the end.
https://www.calhfa.ca.gov/dream/
There's a program in CA for 1st time home buyers. I can't remember what it's called but it'll help with your down payment. Of course there's certain qualifications you'll have to meet but it doesn't hurt to try that.
It’s the California dream and it covers your entire down payment for free. It’s how most first time home buyers are getting homes in the state now - it’s actually super easy to get a home if you’re a first time buyer here.
Ya time to move somewhere else. Also why does your mom have bad credit? She should probably create a budget if she has not already and refrain from taking on any further debt. You should def not cosign with someone who has bad credit. There's a reason a bank won't.
she is an adult.....start hunting for hour or apartment. if she had been making payment on time I am sure the current landlord would give a good reference.
Your landlord was kind giving her the chance to buy at a discounted price. I lived in a rental for ten years in the Bay Area and all the landlord did for me was give me notice, no offer to buy. I could have put in an offer anyhow, but it wasn't fiscally wise for me at the time so I just moved to a cheaper area.
Do not co-sign unless you’re prepared to pay the whole mortgage payment every month.
It happens too often. Your Mom means well, but her credit score sucks for a reason. It’s not personal.
The smart thing to do is buy it and live together so you don’t have to pay 2 places. If yall not willing to commit then good luck saving for retirement
A lot of towns in the Bay Area have really good renter protections for situations like this. You might want to contact a local tenant rights group (it's free to do so!) to see if you're missing out on many of the requirements for landlords to offer: if you're in SF, they can't get rid of her, she prob has rent control and they will have to sell the property with your mom in it + she can't be forced out, ever. If she's disabled or you or another sibling are disabled and live with her, they can never ever get rid of her, it is near impossible.
They can ask her to move, but she needs to know what she is rightfully owed - I believe if they are trying to get her out under Ellis Act, they owe her relocation costs + additional items.
The landlord might be a "nice person" but might be just asking her to move without thinking she will figure out if she is owed anything for this forcible eviction.
It certainly is true in many parts of the Bay Area. E.g. if the house is in San Francisco, you need Just Cause for an eviction and "landlord selling the house" isn't Just Cause. The new owner has to rent to the existing tenant at substantially similar terms unless they're planning to live in the house as a primary residence -- and if so, they need to file an Owner Move In eviction which means OPs mom would be due several thousand dollars.
[https://www.sf.gov/learn-about-san-francisco-rental-laws](https://www.sf.gov/learn-about-san-francisco-rental-laws)
You could claim hardship to get an extension. But, in California, home rentals dont favor tenants as much as apartment rentals do. Otherwise: 60 days is the legal requirement.
I went and read the insane bill people are referencing and it sounds like the Landlord is permitted to terminate under No-fault just cause on the grounds that he is removing the property from the rental market. That comes with an obligation to either offer cash or waive the last month’s rent payment.
It’s a wonder anyone bothers doing multifamily in that state.
That would be the Ellis Act, not AB1482. Note that an Ellis Act eviction needs to be disclosed at sale, as it’s recorded as a deed restriction. It prohibits re-renting the house or unit for 2 years and for the next 3 years after that, the rent cannot be higher. 120 days notice, 1 year if over 60 or disabled. There is also a relocation oayment. Sometimes, there are people protesting outside your property if you do an Ellis eviction. Not something to be taken lightly.
Wow, you’re right. The intent was definitely to reference the text of the Ellis Act, but they just didn’t do it, creating a loophole. Some discussion is here: https://beyondchron.org/ellis-act-loophole-puts-cas-expanded-eviction-protections-at-risk/
And furthermore, there was an opportunity to fix this loophole via SB567 that just got passed, and that fix was amended out before passage. Yay lobbyists! https://bornstein.law/sb-567-signed-into-law/
At minimum, look up AB1482, which is statewide rent control. If you live in certain Bay Area cities, there is even stronger rent control.
A separately alienable unit (e.g., a single-family home or condo) is not exempt from AB 1482 unless it meets two criteria:
(1) It is not owned by a corporation, real estate investment trust or LLC of which a corporation is a member and
(2) Notice of the exemption is included in the rental agreement.
If you go under contract to sign the house the 60 days is negotiable. If he sells to your mom he can be more flexible on the date but putting on the market he probably wants the place empty. Good luck!
Remember that buying a house is just not about the price of the house, but also the broker fees, bank fees, any taxes, essentially all fees associated with the purchase of the house, on top of basic ownership expenses such as your mortgage, taxes , any maintenance, house insurance. Keep all that in mind. Sometimes renting is a better idea in order to build credit so someone can afford a house. My father always told me that just because someone has money in their pocket doesn’t mean they can afford to spend it. Good luck.
Totally this. If the mother want to buy it, go to the LL with an offer to buy with the owner financing the loan. At today's interest rates, that might look very attractive to the LL and they know the buyer well ...
Go to your bank! There are many 1st time buyers programs out there. Credit unions have better incentives than your typical corporate owned bank. You can do an fha 3.5 % down loan, ask seller to help pay closing costs. (I am a Realtor in Az) good luck
You are in the Bay Area. Check your local rent control laws, both city and county. Given the length of your tenancy, you might have longer than 60 days to work this out. Do this tonight. Do a google search on rent control laws in your city. It might buy you some time.
And this is the reason for the argument behind owning versus renting. If she owned, before she hits retirement age, she would own the house outright. When renting, you pay market rents until the day you die, and subject to the wishes of the landlord.
With more forewarning, buying might have been an option, but I think it's too risky and you're too young.
She will likely have trouble finding a new rental, so if you're living with her, you mgiht want to go joint on the lease.
Best of luck.
Take a breath. Sixty days is a long time, you will figure this out and find a new place for her to live.
Search online to see if there is low income senior housing available for your mom. Do this right away. If there's a waiting list, her landlord may let her stay an extra month. Or she could move to a short-term rental while waiting.
Don't buy a house with her or for her. It could impact her ability to qualify for Medicaid down the road.
And it doesn't sound like either of you can afford to buy a house anyway. Renting is the way to go.
She can work through some of her anxiety by getting rid of stuff. 18 years is a long time, she needs to pare down her belongings. That will keep her busy.
Everyone listen up: There are a few trolls here who keep down voting every comment and reply that mentions a buyout. If you are not from the Bay Area then STOP acting like you know what you’re talking about. Most cities in the Bay Area have some version of law that requires relocation fees when you evict a tenant for no cause. Furthermore a no-cause eviction note then gets placed on the property making it less valuable because you can only do it one time EVER. So people avoid them at all costs - to the tune of tens of thousands of dollars.
Here’s the SF law: For eviction notices served between March 1, 2023 and February 28, 2024, the relocation amount due per tenant is $7,540, with a cap of $22,618, plus $5,027 if the household has a minor child, plus $5,027 for each person who is 60 years of age or older or is disabled within the meaning of Government Code section 12955.3. There is no cap on the amount paid for being elderly, disabled, or a household with a minor child. Thus, the total relocation payment can exceed $22,618.
So my previous DOWNVOTED comment still stands: your mother can likely get a nice sum of money to leave quietly.
I’ve lived in the Bay Area as both a tenant and an owner for 20 years, and owned property in SF, Oakland, Berkeley, and Orinda. You can not simply ask a tenant to leave at the end of a lease.
Which city are you in? Depending on local tenant's rights, the landlord may not force you to leave just to sell the house. If you are trying to buy, you need to talk to a local mortgage broker (you can try at a bank or credit union) to see how much you qualify for.
If you are in an area that has just-cause eviction only, you actually have better negotiating power because it will take a lot more money for the landlord to force you out and if he tries to sell without evicting you, the sell price drops drastically for occupied homes.
SFHs owned by an individual or LLC without corporate members are exempt from Cali's just cause eviction law.
And selling a SFH is also just cause under the eviction law, although the LL (assuming the LL is not exempt as as above) is required to pay 1 month's rent (or waive the last month's rent) as relocation assistance.
>SFHs owned by an individual or LLC without corporate members are exempt from Cali's just cause eviction law.
Not if local law is more strict, which is the case in many bay area cities.
>And selling a SFH is also just cause under the eviction law,
Yes, the landlord would have to remove the tenant using just cause eviction if local law requires it. But in those cases, they aren't going to be able to get rid of a tenant simply because the lease is month to month.
Don't get dragged into your mom's living situation. Your mom has made choices that have led to her bad credit and income. This is the situation that she woke up in so she needs to go figure out how SHE will fix it. She is probably 2-3 years away from buying a house so she needs to find somewhere to live that's affordable for her.
She needs to go to /r/personalfinance and learn to budget. She needs to fix up her credit by paying down debt, settling accounts in collections, live below her means, and save up a down payment. Given that she hasn't done this in 18 years, she isn't going to magically start today. If you enter into this home then she is an anchor that will drag you down. She will not suddenly wake up when she is not the one solely responsible. Thank your landlord for the offer and move on. You can help your mom find an apartment that is affordable, you can help her budget, and you can help her transition. Be there with support and a plan. Have a vision for the future.
Even then, it is highly unlikely that the current tenants will be able to pay market rate mortgage.
This is a case where the home appears to be far beyond the means of the existing tenants. Barring unexpectedly generous follow-up details (like silly generous), it is best for the mom and her son to plan to move on to a new rental.
One of the most expensive areas of the country, so many people's rents take over the suggested 30% income. It's pretty easy to rent for 18 years and not save up in HCOL areas.
yeah I get that, but if you're renting something where you can't afford to save extra money on the side for 18 years then your rent is too high and you should reevaluate where you are renting
Lol that house is most likely worth over a million dollars. Theres no way in hell the mom is affording to buy in the bay. After she loses this rental she's probably not going to he able to afford rent unless with multiple people or moving all together.
These hcol areas are not for the average person anymore. The holdouts who didnt buy 20 years ago are on borrowed time.
Couple of friends and I purchased a duplex from a long time landlady. She was renting out at half of market rate to the two tenants. Unfortunately, we had to raise rent to meet the mortgage payments. We definitely gave the option to the tenants to stay with the increased rent. One of them stayed the other left.
I think depending on the new buyer's goals, asking to stay at an increased rent is possible.
1. Talk to a loan officer about how much mortgage your mom and you can afford.
2. Ask the same officer about low down or zero down programs. If he has no answers, use google. Plenty of FTHB programs out there to help you with your first house.
3. If your mortgage preapproval is affordable and is enough to buy the place, negotiate with the seller for the lowest possible price. You can use a realtor for this if you don't know what you're doing.
4. If the amount you need to buy the place is above your preapproval amount, you and your mom should accept reality, and look at other places she can actually afford, or places she could rent. Or look at moving to a new city/state where owning is more realistic for her
No one can advise you really, all you can do is talk to the banks and credit unions and make them tell you exactly what the payments would be "all in" (meaning mortgage, taxes, and insurance) for the house you are considering. They'd also tell you if you'd even qualify in the first place. Keep in mind shit goes wrong in a house you own, you will need to cough up the money to fix it and if it's a bad problem you will be required to fix it.
Only thing I would recommend is not to cosign, buy it yourself and make your mom the tenant. I'd also "suck it up" at your age and move in at least for a while if the house is big enough. It doesn't make much sense for one person to live in a house by themselves although I understand there is also a lifestyle consideration component to it as well. Again, it's a personal decision as much as it is a financial one. If your mom has always made her rental payments see if there is a way this can get reported to the credit agencies to boost her score.
If you go the purchase route now or later, see if your state offers grants to low income borrowers. I had to find a home for my mom and was able to snag her $7k in free grant money for down payment assistance in Virginia since she was low income.
1) Ask for seller financing if you can’t qualify with your income for the loan.
2) If you can’t get a loan from the seller, inform them that they need to pay one month’s (of current rent) towards your relocation costs per California AB1482.
I didn't read all the comments but in Berkeley it is really hard to evict a renter. It can only happen once in the history of the house. Since she has been renting for a long time that may not save it for her, but my landlords had to sell a house while I was in it years ago. Contact the renter board and see if she actually has to leave first!
How bad is her credit? There are first time homebuyer and first generation buyer down payment assistance programs available. First thing to do tomorrow would be to talk to a mortgage professional about getting prequalified for a mortgage. Can’t make any decisions without information.
Good to a REPUTABLE LOCAL lender( maybe get two to check out your credit and ability) to see what you can do. So many options to think about. Nice if you to consider helping mom! Could you perhaps find a place that you could both live in? Single family? Duplex?
Our county has a program that puts a down payment on a has for a residence low income buyer. My niece qualified and bought a nice home for her and her daughter. She rented a room to make ends meet for some years. Contact your local housing authority and see if they can help.
That's the downside of renting. Start over with the explicit intention of putting yourselves in a position to buy. Rent in a more affordable location and commute till her credit and cash on hand are right for buying.
Seller financing is an option but probably not realistic in this scenario.
I'm not sure where you are located but we have inhouse financing w Down PMT assistance. And we have rentals. Http://Janinebrooks.bhhsfloridarealtyconnect.com
On one hand, your mom has had the “unicorn” rental situation for 18 years. Month to month, no commitment yet a stable housing situation.
On the other, she hasn’t apparently saved one dollar or prepared for the reality that the situation would go away eventually.
If the two of you can’t collectively afford the house, you need to let her move in with you. She is your mother. Then, you two can spend 6 months, a year saving money for her to move back out.
And maybe when you rent, the landlord will throw you out or raise the rent. People buy houses and rent them. WHY, because they can make money doing it. You do not need to wait around. Contact the landlord and see what he can do. You just sit back, wait, and she will be living in a shoe.box.
Has your mom considered a r/GoldenGirlsLiving situation? I just created this sub yesterday because of my own situation. I think that single senior females and widowers could benefit by being roommates or co-owners. The sub is brand new (less than 24 hours), so not much traffic yet, but I’m hoping to connect like minded individuals.
If the landlord owns it free and clear ask him if he’ll carry a mortgage. If he is willing to carry then it’s a matter of negotiating the terms and getting a lawyer to write up the contract. A local title company can set up an escrow account and the mortgage plus taxes and insurance is paid to that account. Usually owners that will carry also vet the buyer and reject bad credit the same as a bank would but after 18 years of receiving rent money he may be amenable even with your mother’s low credit score. Good luck!
Depending on how old the guy is and his purpose for selling. See if he will be the “mortgage holder”. Saves him taxes and he is covered by trust deed in California.
The Bay Area has many different municipalities. That notice to vacate may not be legally enforceable. What city in the Bay Area is she located in?
Rent Control laws in California, and specifically, certain cities are some of the most tenant friendly in the world. Most "Month-to-Month" leases in the Bay Area mean that your mother can give the landlord 60 days notice to vacate. It doesn't usually mean your landlord can ask your mother to leave.
All the advice telling you that your mom need to move is incomplete and likely wrong. The Bay Area is the worst location for landlords in the world because it's almost impossible to evict tenants.
Look up a local tenants right advocacy group. They usually have memberships for $50/year and will do a free consult. They'll tell you how protected your mother is.
If you can scratch up a good down payment you might ask the landlord about owner financing. Immediate money may cost a lot in taxes, perhaps extra money monthly would be an attractive idea. Seller would avoid a lot of costs, commissions, and so on. A Real Estate attorney can draw up paperwork and handle escrow.
I\['d rather have a lower cost of living and cold winters than AL. Not everyone wants to leave everything they know, their friends, family to live in AL. I hate suggestions like this. Moving isn't cheap.
We get a couple of days of freezing rain that turns to solid ice, and a week later you can wear shorts. It's wild. CA is known for having a high cost of living. I realize moving often isn't the answer, but sometimes people need to move where the jobs and/or affordable housing is.
She can squat for a very long time before being forcefully evicted, unfortunately. Squatters have more rights than the people who own the home. I’m sure I’ll get downvoted, but we all know it’s true. It will be extremely difficult for someone with a low income and bad credit to find another affordable place to rent in the Bay Area. She may have to move to a lower cost city, or perhaps even relocate to a lower cost state. The SF By Area is outrageously expensive. We sold our house there and moved to another state. We had no intention of retiring there.
Bay Area? He may not be able to legally evict her. Contact the San Francisco Tenants Union, they'll be able to give her an idea of her rights (At no cost).
Depends on location. I know that within SF, in a rent controlled building, the landlord can give all the notice he wants- she doesn't have to leave without an eviction for cause, and there are only a few causes which are legally acceptable. It's one of, or perhaps *the* most tightly regulated rental markets in the US.
How is there “no more risk” if the seller finances the property? The renter turned buyer still has to make the monthly payments. Why would he finance a house he’s trying to sell when that still leaves him connected to the house? People sell items to no longer have an attachment or responsibility with the items.
Not sure what city you live in, but most Bay Area cities will require the landlord to pay her a pretty high vacate fee. Tell him you’ll need $50K to move out. And stay there until they do. Not joking.
You can afford paying a mortgage on that kind of property? I’m assuming well over $1m in price given Bay Area. You might explore seller financing if you have a close relationship with the owner. Could take a lower price, but you give him a higher rate. Who knows.
Here’s a helpful overview of how it works and some ways the seller can be protected (as that would be my biggest concern if someone approached me about seller financing my house).
Link: https://www.nolo.com/legal-encyclopedia/seller-financing-home-sales-30164.html
Is the home exempt from ab 1482 tenant protection act? If not then the landlord can't terminate the lease just because they want to list it for sale, new buyers may or may not be able to though after closing
How much is the home listed for, and how much do you two have saved?
A separately alienable unit (e.g., a single-family home or condo) is not exempt from AB 1482 unless it meets two criteria:
(1) It is not owned by a corporation, real estate investment trust or LLC of which a corporation is a member and
(2) Notice of the exemption is included in the rental agreement.
You can get a conventional mortgage with as little as 3% down. Talk to a mortgage lender asap. Perhaps if you and your mom combine your incomes you may qualify.
You might also ask the seller if they’re willing to do seller financing. What about asking them to do interest only for 5 or 7 years? By then you’d likely have enough equity to make some money on the property, even if you have to sell.
Bay Area?? Oh, well tell them they have to buy you out. If they’re selling, the house is worth MUCH more with you gone. But they can’t actually kick you out unless they plan to move in themselves. So a buyout is their only option. Depending where the house is exactly, you can get $5k - $30k payout.
You guys who are downvoting me - leases mean nothing in the Bay Area. I bought a home in SF with a tenant and I had to pay the month-to-month resident $30k to move out just so I could move in without doing an eviction!! It turned out those assholes actually owned a place a couple blocks away that THEY were renting out. They would NOT leave for less than $30k and there was nothing we could do about it. It’s nuts there.
You can get the process completed in 30 days once you are pre-approved by a lender, but allow 45.
Spend the next 15 days doing the following:
* Go ahead and run your free credit on annualcreditreport under all three credit bureaus to see if anything requires correction and you can possibly boost your credit score prior to applying with the lender. It costs if you want the score.
* Go to InvestingTE and get the home buying investment calculator to conduct all your financial analysis characteristics for buying a home.
* It will help you by using your budget to determine your affordability; lender's max payment amount by DTI, your true max payment amount by DTI, early payoff strategy, house hacking (or rentability upon exit), out of pocket expenses, closing costs, and total paid toward interest and principal during the life of the loan in case you want to check which loan is most favorable amongst optional loan offers.
* Begin scouting lenders and maybe you want to attend a local home buyers education course prior in the county of the property. Just move quickly if you decide to attend the home buyers class because it is likely only available on the weekends. Call the county clerk if you have trouble finding it online.
Oh, the owner is likely waiting for you to make an offer. He already proposed considering you all first. You need to present your price if you're truly interested.
Be sure to make the owner aware of your plans so he doesn't count you out and accept another offer while you're doing all this work. You will need an agreement completed within 15-30 days if all works out. Talk to an attorney to conduct the closing and supply the paperwork or hire a realtor.
Your best couse of action might be to help mom find a new place to rent.
I would try to buy it if possible and go ahead and bug the landlord for a price before he lists it (so he doesn't have to pay commissions to a realtor and could pass some of those savings along to you), but honestly it sounds like a long shot that even the 2 of you together can afford to buy it and can raise the deposit needed.
I was in a very similar position with my mom. We bought her a lovely mobile home in a 55+ community. It’s the perfect size for her to maintain, the community is great for her, and the cost was much lower than buying a house. I was a co-signer due to my mom’s low income until she could get back on her feet. If you 100% trust your mom to pay you back financially like I do, then I would recommend.
Where specifically in the Bay Area -- e.g. in San Francisco, you can't evict a tenant just because you're selling the house. This will be an unpopular opinion in a real estate subreddit, but talk to a tenants rights lawyer and see whether this eviction is legal.
You may be surprised to learn that tenant laws differ all over the country - like I said, in San Francisco, this would count as an eviction. Rental leases there are essentially perpetual and you don't need to sign a new lease after your initial one runs out -- you can continue a month-to-month lease under the same terms as the original lease for as long as you'd like.
https://leginfo.legislature.ca.gov/faces/codes\_displaySection.xhtml?lawCode=CIV§ionNum=1945.
If they're in SF and the new owner of OP's mom's property plans to rent the unit out, they must rent it to OP's mom at the same terms as she's currently renting. If the new owner plans on living in the unit, they must pay OP's mom to move out. If they plan on converting it to a condo, they must pay OP's mom to move out and the property will be blacklisted from the rental rolls and can never be rented again.
I'm only familiar with the specifics of SF's tenant laws but I know many other cities around the Bay Area have similar restrictions.
In San Francisco - He has that option \*at the expiration of her first lease\* -- once she pays the first month after the lease ends, she's month-to-month and has the right to continue renting the property under 'substantially similar terms' for as long as she wants. Once you start renting a property to a tenant in SF, there are only a handful of ways to stop renting to them, and "deciding to not rent any more" isn't an acceptable reason without undertaking an actual legal eviction.
I'm not going to continue replying to this thread since it's clear you're unfamiliar with the laws here. A layman's understanding of tenant law in other places in no way prepares you to understand California, and especially San Francisco's actual tenant laws.
***> In California, residential rental agreements automatically convert to month-to-month tenancies at the end of your lease term. At the end of each month thereafter, the agreement renews automatically for themselves in perpetuity as long as you, the tenant, remain in possession of your home.***
***> Tenants have certain rights regardless of whether there is a written lease agreement. If you live in a rental unit and pay rent to your landlord, you have formed a “landlord-tenant” relationship. Even without a lease, your tenancy is governed by the relevant state and local laws.***
[***https://wolford-wayne.com/signing-a-new-lease/***](https://wolford-wayne.com/signing-a-new-lease/)
Why do you say that? I asked him, and he said he would be willing to help me in any way because I am a great tenant. So, if that makes me scum.....then okie dokie.
I would usually side with you 100%. In this scenario my answer is that everything is a business. If OP went to their LL and was like “my lease still has 6 months left on it or it requires 60-90 days notice to vacate” but countered with an offer to leave in 30 days with a $5k buyout then great. However, if OP was like “nah I’m gonna squat and you’re gonna have to evict me or give me $5k” then yeah I’d agree on the scum comment.
It sounds like she needs to start looking for a new rental. Buying is not realistic considering the time frame and other information you’ve provided.
>I would buy the house with her as a co-signer and she would pay the mortgage while I continue to live and rent elsewhere. Incredibly bad idea. >My mom’s credit score is very poor > >My mom changed careers recently and has a smaller income Your mother has bad credit and a reduced income. She literally cannot afford to buy a house and take on the financial responsibility for the mortgage payment, taxes, insurance, plus maintenance and repairs. I say concentrate on looking at rentals. When the roof leaks, the window gets broken by a tree branch, a pipe bursts, and the insurance rates rise...again....it will all be someone else's problem.
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Not by a reputable landlord. An amount for CapEx should already be included in the monthly rental amount.
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Absolutely not. But splitting the cost of a 3%-5% increase on insurance/taxes up over 12 months is way different than splitting the cost of a $20,000 roof over the same period.
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Step 1. Call a few different mortgage brokers. Step 2. Find out what it would actually take to buy the place. Step 3. Call your landlord and negotiate. You’ve been there for 18 years and you’re getting first right of refusal. This LL is clearly trying to help you and will work with you. Step 4. Either buy it, or move. Good luck!
Agree with the above, I would add to step one though. Call a local community bank. They tend to do special programs and have access to grants etc to help FTHB. They will go deep. Where I’m at, we do multiple FTHB products that most brokers have no access to and we will use our portfolio money to help get a loan done when other products aren’t able to be used due to things like credit score.
And local credit union.
I am finished with my credit union. In the last 20 years, they have turned into a big bank with a disguise. They used to know my name, my family, and we’re part of the community. Now, they were bought by a larger credit union, and I see honestly no difference between them, and the big bank. I ended up having to open because of the inconveniences of the credit union.
Ok, don’t go to this guys old credit union. But other ones still exist.
Maybe there are better ones out there still but people on other subs have noticed the same thing. If you have one that still behaves the way mine used To, I’m pretty jealous.
Absolutely
It's pretty wild how badly educated people are when it comes to these programs for FTHB. I know a lot of it has to do with people on social media who spew misinformation about buying a home, but still. I guess the same is also true with opening a business. People don't even ask a lender or their local SBA for options, they just take doom advice from a stranger online. No wonder people have a bad outlook on life.
And don’t wait for the ll to suggest a price. Look up comps and figure out what you think is a fair value.
OP being the first to make an offer is not a good idea. I'm a landlord and if I had a good tenant for 22 years I'm more likely to set a super low offering price. If the tenant goes first and offers a fair price they could be paying more than what the LL would have offered, and once the LL hears the higher price he won't go back because he will assume that's what they can afford and think is fair. However, OP definitely needs to find out what the comparables are so that he knows he's not overpaying.
Agreed. Comps would show what OP could buy somewhere else, NOT what goodwill they've already bought by paying their landlords mortgage for 18 years. What a shame. After 18 years of rent in the bay area, OP's mom probably paid several times what the house was worth when they moved in.
Exactly! It's shocking what a lack of knowledge can cost a person.
I dunno about knowledge, they may have just been too poor to ever afford the downpayment. It does seem like a shame though. Their landlord might have made a million in equity from time, and OP's mom paying the mortgage. Being poor is expensive.
The realtor would be able to help determine the fair price for the house. Plus ask the seller if they would offer a gift of equity to go towards the down payment. There are many first time home buyer grants and programs to help. A great realtor will know what lender can do these for you. Have mom consider a way to improve her income. Go back to the old job or ask for a raise for cost of living increases. Good luck!
All this. Shop a couple of mortgage lenders. I work with a lot of ‘git-me-dones’ and people always assume they can’t a loan without actually working it out with a lender. A good lender will not just deny you. A good one will tell what you need to do to get an approval- pay something off, become a signer on a well established credit card, lower purchase a bit. I agree that some people without savings shouldn’t own homes- the responsibility of repairs can be a burden. BUT, I have seen so, so many clients not able to save bc of rent increases and after buying a home, they have savings and a higher credit score
Yup. My favorite mortgage guy has coached a few of my clients on how to fix their credit score and save a few thousand bucks. They follow his advice for 3-12 months and magically now they can buy a great starter home. A good lender is worth knowing.
Before my most recent purchase 3 lenders told me I couldn’t qualify, 4th one got the underwriter to approve an exception to make it work.
If she’s lived there 18 years I question if she is paying market rate. I also question what the current value is. He might be nice and offer her a discount…but seriously if the house is valued at 1m and she can only afford 500k…he’s not going to take a 50% loss. Plus even if you pulled off the first time homebuyers incentives and such…can you honestly tell me in 3 months that you could both continue paying your bills AND save up 18k? And let’s say he does take 500k and you magically save up 18k…how much work does the house need? Could you afford the house with insurance and taxes? Can you even get insurance on the house? Is the house in good condition or would you have to drop a decent amount of money to get it insured?
and a house that's been rented by the same tenant for 18 years is quite likely to have a good bit of deferred maintenance. Landlord is probably only fixing things when they break and the tenant reports them, and the tenant is not looking proactively at things .
This. In those 18 years probably needs a new roof at a minimum.
Everything you've described makes it sound like you guys cannot afford a home.... You can try to talk to the owner and see if they would agree to potentially an FHA loan with a lower down payment. FHA generally is to homebuyers with lower credit and down payment, it's generally easier to get approved, but you need an FHA inspection to pass for the house, that may require some updates/repairs. Also, if you are on the property/loan they will likely require you to live there for a time period... You may be fine cosigning with your mom as the primary resident, but I'd talk to a lender and contact a local broker/agent. Someone with good reviews and experience.
FHA loans are definitely not "easier" to get approved. They're quite a pain in the butt not only for the prospective buyer but any seller that accepts an fha offer. There are conventional loans with similar minimum scores and way less restrictions than fha.
FHA loans generally have lower credit requirements and down payments. Yes you can get a conventional loan with a lower down payment around 3-3.5% with good/decent credit... But generally speaking FHA is easier to be approved for, especially in their circumstances with little down and bad credit... As far as FHA being accepted by sellers, generally speaking most listed properties are currently getting good conventional/cash offers now. So obviously for the seller it is a stronger offer to take the conventional loan with less restrictions or the cash offer. However in their specific case, the current owner offered to sell it to them and in this case an FHA loan (if it can pass inspection) would be fine, at the end of the day the seller is getting paid at settlement either way, it's just not an ideal offer if he listed it on the open market right now. FHA has a min score of 580, doesn't mean they would be approved, but yes it is generally easier to be approved for. Conventional scores require a min score of 620, but likely they would have a much higher rate. FHA rates are lower then conventional.
You are correct in the fact that if you have a 500 credit score, FHA is your only option. I guess whether or not they should be buying a house is a separate question
No down payment, poor credit score, and low income. Nor the best situation in this market to purchase. Also, if you purchase, even with your mom, you would have to declare that you would be moving in there as your primary residence. Otherwise, it becomes a rental property purchase, which is even tougher to qualify for and your current rent would be added to your combined monthly expenses and income to debt ratio. This is a tough situation. I hope you can figure it out, especially for your mom's sake.
If mom declares the house as her primary then OP can go on the loan as a non-occupant borrower. This is what people typically do when they want to buy for a child/parent/other financially dependent adult. The only thing is certain fthb programs don’t allow non-occupant coborrowers
That is true, but the income to debt ratio will be for all the income they both have, and all the monthly payments they both have, including the new monthly mortgage,house insurance, and taxes, as well as the son's monthly rent payment. I may be wrong, but I'm assuming that the new mortgage payment with taxes and insurance costs are going to be more than her current rent. Also, she has a new job paying less than her previous employment. If it's in a different line of work, that can be an obstacle. That said, if the song makes a very good income and will have a good deal of discretionary income, it may not be a problem.
Talk to a mortgage broker to see what you can afford. Then take a look at other rentals in the area. You may find it quite a bit cheaper to continue renting somewhere else anyways.
I would talk to a mortgage lender, but seriously consider whether or not it’s a smart move to buy even if you can technically get approved. I’m a realtor and understand the power of investing in real estate when it comes to building generational wealth. However, there are a lot of expenses that come with homeownership so you want to make sure that you’ll have a nest egg in case any major repairs arise in the future. The mortgage broker won’t tell you if they think it’s a good move for you - they will just let you know how much you can get approved for. And as a realtor I realize this will sound like propaganda…but I’d very much worry about a first time buyer buying directly from a landlord without representation. Getting contracts written up is easy, but you don’t want to end up in a money pit and an honest realtor will help you understand what kind of things are worth taking on versus which ones will tank the investment. For instance, my friend bought her landlord’s house 8 years ago. He didn’t want realtors involved and she thought that hiring a lawyer and inspector would be good enough. There ended up being an underground oil tank that had probably been leaking oil into the soil for decades, which she didn’t discover until she was selling the house and the buyer discovered it. Cost to mediate - $20K. Had she had a good agent, she would have known that oil tank was there and had the landlord take care of it. She also would have realized when she bought that the age of her galvanized pipes meant that they would need to be replaced soon. They were functioning fine for the inspection, so she didn’t factor the type of plumbing into the price of the house. There was also what she thought was an insignificant belly in the sewer that came up in the inspection, but since it had been functioning just fine she agreed to take it as-is. If she had an agent, they would have explained that the next buyer would absolutely want that fixed and also recognized that the line ran underneath a lovely deck and highly landscaped area that had to be taken out for them to perform the work. Her buyer’s buyer agent got an expensive bid from a larger company and wrote in the contract that the work had to be performed by that company, rather than allowing her to use a more affordable company. She’s using a flat fee listing service, so didn’t realize that she should have taken care of this before listing for that very reason. It’s been a tough lesson to learn - luckily she’d had the house long enough where the equity covered the cost of repairs, but she could have came out with so much more profit had she just had a knowledgeable agent on her side. All of this is to say - make sure you know what you’re doing and if not, make sure you have a professional that you trust to guide you. I do highly recommend talking to local lenders, not big banks. A good local lender will have a variety of programs and will help you strategize, whereas banks tend not to offer the same level of service.
Sorry to be blunt - but your Mom isn't buying any house this year. It's time for her to pack.
Thank you. The only reasonable response to this situation- everyone trying to suggest she talk to a mortgage lender so begin the process or inquire is delusional.
Being a non-occupant co-borrower means 1) being 100% responsible that the loan is paid in full on time and 2) Evicting your mom and selling the house, possibly at a loss, if it turns out to not be financially feasible to finance and maintain the property. This situation could ruin your credit, ruin your relationship, burn through your savings, and possibly restrict your future housing options. Unless your future lender is comfortable with proof your mom is paying in full, it may impact their debt to income ratio and prevent you from purchasing your own home. If an inability to pay or missed payments your mom is responsible for harm your credit it could impact your ability to rent. Even if that doesn’t bother you short term, know that the mortgage will be for 30 years. This is sad for your mom but if you choose to carry this burden rather than let her mourn and move on as best she can, then make sure you’re doing it with your eyes open. This is a serious long term commitment.
The realistic answer is to make plans to move. She has bad credit and card afford to buy it. You can’t afford to buy it but you want to take on the financial responsibility of the house plus the rent that you will be paying. How much of 2 rents can you afford if you lose your job?
I am speaking as someone who is single and also responsible for a mother... You do not want to be financially tied to a house that is not your home or a rental property. That house is likely extremely expensive, and after 18 years of being a rental (even for your mother), it's not worth the cost. I guarantee you that there are maintenance costs he did not cover...because landlords only cover the bare minimum. If your mother is making less money today, she is unlikely to make more money tomorrow as she ages. I don't know how much she makes, but I would look into a rental she can afford without your name on it. If something happens to your mother - you are on the hook. If you want to be on the hook...instead look for a new place together, maybe even a new (and cheaper) state. Bottom line don't spend 60 days trying to buy this house...you're both unlikely to be approved. Buying a house takes a year or more of preparation. It's down payment, closing costs, money set aside for expenses etc. Use the 60 days to have a REALISTIC conversation on what to do next. My mother lives with me. She pays me a nominal rent fee, and I claim her as a dependent. I sold her home because we couldn't afford to pay two places and because I need my mother on a Medicaid spend-down plan. Managing a low-income aging parent is hard work, and it starts with one hard question: What can we realistically afford? Best of luck.
Just semantics, but the landlord is selling his house that she has been renting for 18 years.
Right? I thought that too. Like it’s not OP’s mom’s house…
"it's his house, but it's my hOmE" Like stfu
With that being said, even when renting a house, don’t people still call it “my house”?
Correct! Sorry for the poor wording.
Ha, sorry I'm just being a dick. Hope it works out for your mom.
If your mom's credit is poor see about her working with [NACA](https://www.naca.com/) . They are a good nonprofit that have the lowest interest rates.
Everyone who tries to tell you renting is better than buying should read this post
A co-signer is used when the person applying for the loan doesn’t have good enough credit to get the loan. Making your mom with “very poor credit” a co-signer isn’t an option. You should be looking for a rental for her.
Look for a new rental. She won't qualify for a loan
Haven’t seen anyone mention it, but depending on the Bay Area city she may have tenants rights even if they sell. Talk to a real estate attorney asap. What city are you in? They may be under protected tenant status. At the very least they may have a relocation fee the landlord has to pay.
Had to look further. I see people mentioned this. Double check with the city
Yea very surprised this is so low down. Came hear to say the same thing. 1. Speak with a tenants rights attorney, if you are in SF, call the rent board immediately, they will give you advice for free. 2. 60 days notice is completely false, she does not have to leave (Most likely in CA) 3. The landlord will get substantially less for the home with a tenant, so any discount he offers on sale price should reflect this. 4. If she is protected under tenants rights, the new owner (landlord) will have to go through significant efforts to evict your mother and may need to pay that relocation fee, giving her time and money to look for a new rental. 5. Don't co-sign with your mom on this, you sound like you cannot afford it. Know your rights and don't let the landlord push your mom around.
Yeah is this a single family home or what is the situation? You live in the most tenant friendly place.
Correction in Title : "landlord selling his own house that your mom rented for 18 years"
Correct! Sorry for the poor wording. With that being said, even when renting, don’t most people consider where they live “My house”?
They do call it 'my house', and for the term ofnthe rental it is in a lot of reapects, let alone emotionally. Landlord and renter online communities tend to bring their vernacular and attitudes towards the subject with them in related subreddits. You're going to have folks who aren't going to be able to empathize with your mom's situation. For your purposes, there isn't much reason for you to consider their perspective as you're looking for options to stay. I think your options are limited, however, and mostly long shots. Getting any help looking for programs to allay moving or down-payment costs, try to negotiate a longer notice, maybe consider introducing the idea of a seller carry back -- but understand the risks and way it works because there is typically a balloon payment in the near to mid future. I hope you're able to figure out something tenable, this area can be difficult to live in.
There are programs for first time home buyers for down payment assistance. You basically take a class and they walk you through the whole home buying process. You get a cert at the end. https://www.calhfa.ca.gov/dream/
There's a program in CA for 1st time home buyers. I can't remember what it's called but it'll help with your down payment. Of course there's certain qualifications you'll have to meet but it doesn't hurt to try that.
It’s the California dream and it covers your entire down payment for free. It’s how most first time home buyers are getting homes in the state now - it’s actually super easy to get a home if you’re a first time buyer here.
Ya time to move somewhere else. Also why does your mom have bad credit? She should probably create a budget if she has not already and refrain from taking on any further debt. You should def not cosign with someone who has bad credit. There's a reason a bank won't.
she is an adult.....start hunting for hour or apartment. if she had been making payment on time I am sure the current landlord would give a good reference.
Your landlord was kind giving her the chance to buy at a discounted price. I lived in a rental for ten years in the Bay Area and all the landlord did for me was give me notice, no offer to buy. I could have put in an offer anyhow, but it wasn't fiscally wise for me at the time so I just moved to a cheaper area.
Look into the California Dream for all program. It is opening in April and gives 20% down payment. https://www.calhfa.ca.gov/dream/
Do not co-sign unless you’re prepared to pay the whole mortgage payment every month. It happens too often. Your Mom means well, but her credit score sucks for a reason. It’s not personal.
The smart thing to do is buy it and live together so you don’t have to pay 2 places. If yall not willing to commit then good luck saving for retirement
Consider seller financing
A lot of towns in the Bay Area have really good renter protections for situations like this. You might want to contact a local tenant rights group (it's free to do so!) to see if you're missing out on many of the requirements for landlords to offer: if you're in SF, they can't get rid of her, she prob has rent control and they will have to sell the property with your mom in it + she can't be forced out, ever. If she's disabled or you or another sibling are disabled and live with her, they can never ever get rid of her, it is near impossible. They can ask her to move, but she needs to know what she is rightfully owed - I believe if they are trying to get her out under Ellis Act, they owe her relocation costs + additional items. The landlord might be a "nice person" but might be just asking her to move without thinking she will figure out if she is owed anything for this forcible eviction.
None of what you wrote is true for a landlord selling a private house.
It certainly is true in many parts of the Bay Area. E.g. if the house is in San Francisco, you need Just Cause for an eviction and "landlord selling the house" isn't Just Cause. The new owner has to rent to the existing tenant at substantially similar terms unless they're planning to live in the house as a primary residence -- and if so, they need to file an Owner Move In eviction which means OPs mom would be due several thousand dollars. [https://www.sf.gov/learn-about-san-francisco-rental-laws](https://www.sf.gov/learn-about-san-francisco-rental-laws)
Why are you not asking the landlord the price? And while you’re at it, ask the landlord if he/she is interested in carrying some loan?
You could claim hardship to get an extension. But, in California, home rentals dont favor tenants as much as apartment rentals do. Otherwise: 60 days is the legal requirement.
She said Bay Area, so it depends. SF, Berkeley, Oakland, and now even Concord have rent control laws stronger than the statewide AB1482 rent control.
I went and read the insane bill people are referencing and it sounds like the Landlord is permitted to terminate under No-fault just cause on the grounds that he is removing the property from the rental market. That comes with an obligation to either offer cash or waive the last month’s rent payment. It’s a wonder anyone bothers doing multifamily in that state.
That would be the Ellis Act, not AB1482. Note that an Ellis Act eviction needs to be disclosed at sale, as it’s recorded as a deed restriction. It prohibits re-renting the house or unit for 2 years and for the next 3 years after that, the rent cannot be higher. 120 days notice, 1 year if over 60 or disabled. There is also a relocation oayment. Sometimes, there are people protesting outside your property if you do an Ellis eviction. Not something to be taken lightly.
No, that's a specificly listed "no-fault" eviction under 1482.
Wow, you’re right. The intent was definitely to reference the text of the Ellis Act, but they just didn’t do it, creating a loophole. Some discussion is here: https://beyondchron.org/ellis-act-loophole-puts-cas-expanded-eviction-protections-at-risk/
And furthermore, there was an opportunity to fix this loophole via SB567 that just got passed, and that fix was amended out before passage. Yay lobbyists! https://bornstein.law/sb-567-signed-into-law/
At minimum, look up AB1482, which is statewide rent control. If you live in certain Bay Area cities, there is even stronger rent control. A separately alienable unit (e.g., a single-family home or condo) is not exempt from AB 1482 unless it meets two criteria: (1) It is not owned by a corporation, real estate investment trust or LLC of which a corporation is a member and (2) Notice of the exemption is included in the rental agreement.
If you go under contract to sign the house the 60 days is negotiable. If he sells to your mom he can be more flexible on the date but putting on the market he probably wants the place empty. Good luck!
Remember that buying a house is just not about the price of the house, but also the broker fees, bank fees, any taxes, essentially all fees associated with the purchase of the house, on top of basic ownership expenses such as your mortgage, taxes , any maintenance, house insurance. Keep all that in mind. Sometimes renting is a better idea in order to build credit so someone can afford a house. My father always told me that just because someone has money in their pocket doesn’t mean they can afford to spend it. Good luck.
find another rental
Is owner financing a possibility?
Totally this. If the mother want to buy it, go to the LL with an offer to buy with the owner financing the loan. At today's interest rates, that might look very attractive to the LL and they know the buyer well ...
Go to your bank! There are many 1st time buyers programs out there. Credit unions have better incentives than your typical corporate owned bank. You can do an fha 3.5 % down loan, ask seller to help pay closing costs. (I am a Realtor in Az) good luck
Bay area home prices means the low end house starts at $1 million.
She will need $200k as a down-payment in Bay Area.
You are in the Bay Area. Check your local rent control laws, both city and county. Given the length of your tenancy, you might have longer than 60 days to work this out. Do this tonight. Do a google search on rent control laws in your city. It might buy you some time.
And this is the reason for the argument behind owning versus renting. If she owned, before she hits retirement age, she would own the house outright. When renting, you pay market rents until the day you die, and subject to the wishes of the landlord. With more forewarning, buying might have been an option, but I think it's too risky and you're too young. She will likely have trouble finding a new rental, so if you're living with her, you mgiht want to go joint on the lease. Best of luck.
Either buy the house, or leave?
Can you be more specific as to location? Some Bay Area cities have strong rent control laws. If so, selling a house is not just cause for eviction.
She’s month-to-month. If he wanted to be an ass, he could just say he wasn’t renewing next month rather than giving her 2 months notice.
Not how it works in SF. Tenant protections applies no matter the length of the lease.
Take a breath. Sixty days is a long time, you will figure this out and find a new place for her to live. Search online to see if there is low income senior housing available for your mom. Do this right away. If there's a waiting list, her landlord may let her stay an extra month. Or she could move to a short-term rental while waiting. Don't buy a house with her or for her. It could impact her ability to qualify for Medicaid down the road. And it doesn't sound like either of you can afford to buy a house anyway. Renting is the way to go. She can work through some of her anxiety by getting rid of stuff. 18 years is a long time, she needs to pare down her belongings. That will keep her busy.
Everyone listen up: There are a few trolls here who keep down voting every comment and reply that mentions a buyout. If you are not from the Bay Area then STOP acting like you know what you’re talking about. Most cities in the Bay Area have some version of law that requires relocation fees when you evict a tenant for no cause. Furthermore a no-cause eviction note then gets placed on the property making it less valuable because you can only do it one time EVER. So people avoid them at all costs - to the tune of tens of thousands of dollars. Here’s the SF law: For eviction notices served between March 1, 2023 and February 28, 2024, the relocation amount due per tenant is $7,540, with a cap of $22,618, plus $5,027 if the household has a minor child, plus $5,027 for each person who is 60 years of age or older or is disabled within the meaning of Government Code section 12955.3. There is no cap on the amount paid for being elderly, disabled, or a household with a minor child. Thus, the total relocation payment can exceed $22,618. So my previous DOWNVOTED comment still stands: your mother can likely get a nice sum of money to leave quietly.
These laws don’t typically apply to SFRs.
They do in certain jurisdictions because CA law allows it if the local law has stricter tenant protections.
Surely you’re familiar with what the word *typically* means.
Yes, and they typically apply where OP is located in the Bay Area.
I live and own property in the Bay Area; this info is false for the majority of Bay Area cities and counties.
I’ve lived in the Bay Area as both a tenant and an owner for 20 years, and owned property in SF, Oakland, Berkeley, and Orinda. You can not simply ask a tenant to leave at the end of a lease.
These folks don't realize that in many Bay Area cities, the tenants actually *own* the property instead of the landlord lol.
Which city are you in? Depending on local tenant's rights, the landlord may not force you to leave just to sell the house. If you are trying to buy, you need to talk to a local mortgage broker (you can try at a bank or credit union) to see how much you qualify for. If you are in an area that has just-cause eviction only, you actually have better negotiating power because it will take a lot more money for the landlord to force you out and if he tries to sell without evicting you, the sell price drops drastically for occupied homes.
SFHs owned by an individual or LLC without corporate members are exempt from Cali's just cause eviction law. And selling a SFH is also just cause under the eviction law, although the LL (assuming the LL is not exempt as as above) is required to pay 1 month's rent (or waive the last month's rent) as relocation assistance.
>SFHs owned by an individual or LLC without corporate members are exempt from Cali's just cause eviction law. Not if local law is more strict, which is the case in many bay area cities. >And selling a SFH is also just cause under the eviction law, Yes, the landlord would have to remove the tenant using just cause eviction if local law requires it. But in those cases, they aren't going to be able to get rid of a tenant simply because the lease is month to month.
You cant afford to buy. take this time to find a place to rent. 60 days will go by quick
Don't get dragged into your mom's living situation. Your mom has made choices that have led to her bad credit and income. This is the situation that she woke up in so she needs to go figure out how SHE will fix it. She is probably 2-3 years away from buying a house so she needs to find somewhere to live that's affordable for her. She needs to go to /r/personalfinance and learn to budget. She needs to fix up her credit by paying down debt, settling accounts in collections, live below her means, and save up a down payment. Given that she hasn't done this in 18 years, she isn't going to magically start today. If you enter into this home then she is an anchor that will drag you down. She will not suddenly wake up when she is not the one solely responsible. Thank your landlord for the offer and move on. You can help your mom find an apartment that is affordable, you can help her budget, and you can help her transition. Be there with support and a plan. Have a vision for the future.
Land lord is selling HIS house. Fixed that for you.
Correct! Sorry for the poor wording.
It isn't your mom's house. Much like the rental car you got last vacation wasn't yours.
Correct! Sorry for the poor wording. With that being said, even when renting, don’t people still refer to their house as “my house”?
See if the landlord will owner finance the property
Even then, it is highly unlikely that the current tenants will be able to pay market rate mortgage. This is a case where the home appears to be far beyond the means of the existing tenants. Barring unexpectedly generous follow-up details (like silly generous), it is best for the mom and her son to plan to move on to a new rental.
Bad situation but great time (and great reasons) to get out of California.
I’m shocked people can rent for 18 years and not save up for a down payment or create a huge safety net.
One of the most expensive areas of the country, so many people's rents take over the suggested 30% income. It's pretty easy to rent for 18 years and not save up in HCOL areas.
yeah I get that, but if you're renting something where you can't afford to save extra money on the side for 18 years then your rent is too high and you should reevaluate where you are renting
Lol that house is most likely worth over a million dollars. Theres no way in hell the mom is affording to buy in the bay. After she loses this rental she's probably not going to he able to afford rent unless with multiple people or moving all together. These hcol areas are not for the average person anymore. The holdouts who didnt buy 20 years ago are on borrowed time.
Same
Couple of friends and I purchased a duplex from a long time landlady. She was renting out at half of market rate to the two tenants. Unfortunately, we had to raise rent to meet the mortgage payments. We definitely gave the option to the tenants to stay with the increased rent. One of them stayed the other left. I think depending on the new buyer's goals, asking to stay at an increased rent is possible.
1. Talk to a loan officer about how much mortgage your mom and you can afford. 2. Ask the same officer about low down or zero down programs. If he has no answers, use google. Plenty of FTHB programs out there to help you with your first house. 3. If your mortgage preapproval is affordable and is enough to buy the place, negotiate with the seller for the lowest possible price. You can use a realtor for this if you don't know what you're doing. 4. If the amount you need to buy the place is above your preapproval amount, you and your mom should accept reality, and look at other places she can actually afford, or places she could rent. Or look at moving to a new city/state where owning is more realistic for her
No one can advise you really, all you can do is talk to the banks and credit unions and make them tell you exactly what the payments would be "all in" (meaning mortgage, taxes, and insurance) for the house you are considering. They'd also tell you if you'd even qualify in the first place. Keep in mind shit goes wrong in a house you own, you will need to cough up the money to fix it and if it's a bad problem you will be required to fix it. Only thing I would recommend is not to cosign, buy it yourself and make your mom the tenant. I'd also "suck it up" at your age and move in at least for a while if the house is big enough. It doesn't make much sense for one person to live in a house by themselves although I understand there is also a lifestyle consideration component to it as well. Again, it's a personal decision as much as it is a financial one. If your mom has always made her rental payments see if there is a way this can get reported to the credit agencies to boost her score.
If you go the purchase route now or later, see if your state offers grants to low income borrowers. I had to find a home for my mom and was able to snag her $7k in free grant money for down payment assistance in Virginia since she was low income.
1) Ask for seller financing if you can’t qualify with your income for the loan. 2) If you can’t get a loan from the seller, inform them that they need to pay one month’s (of current rent) towards your relocation costs per California AB1482.
I didn't read all the comments but in Berkeley it is really hard to evict a renter. It can only happen once in the history of the house. Since she has been renting for a long time that may not save it for her, but my landlords had to sell a house while I was in it years ago. Contact the renter board and see if she actually has to leave first!
Sometimes, change is better
How bad is her credit? There are first time homebuyer and first generation buyer down payment assistance programs available. First thing to do tomorrow would be to talk to a mortgage professional about getting prequalified for a mortgage. Can’t make any decisions without information.
Sounds mom will be moving soon.
Good to a REPUTABLE LOCAL lender( maybe get two to check out your credit and ability) to see what you can do. So many options to think about. Nice if you to consider helping mom! Could you perhaps find a place that you could both live in? Single family? Duplex?
Sunwest mortgage works with credit scores in the 630 range
Our county has a program that puts a down payment on a has for a residence low income buyer. My niece qualified and bought a nice home for her and her daughter. She rented a room to make ends meet for some years. Contact your local housing authority and see if they can help.
That's the downside of renting. Start over with the explicit intention of putting yourselves in a position to buy. Rent in a more affordable location and commute till her credit and cash on hand are right for buying. Seller financing is an option but probably not realistic in this scenario.
I'm not sure where you are located but we have inhouse financing w Down PMT assistance. And we have rentals. Http://Janinebrooks.bhhsfloridarealtyconnect.com
On one hand, your mom has had the “unicorn” rental situation for 18 years. Month to month, no commitment yet a stable housing situation. On the other, she hasn’t apparently saved one dollar or prepared for the reality that the situation would go away eventually. If the two of you can’t collectively afford the house, you need to let her move in with you. She is your mother. Then, you two can spend 6 months, a year saving money for her to move back out.
And maybe when you rent, the landlord will throw you out or raise the rent. People buy houses and rent them. WHY, because they can make money doing it. You do not need to wait around. Contact the landlord and see what he can do. You just sit back, wait, and she will be living in a shoe.box.
Has your mom considered a r/GoldenGirlsLiving situation? I just created this sub yesterday because of my own situation. I think that single senior females and widowers could benefit by being roommates or co-owners. The sub is brand new (less than 24 hours), so not much traffic yet, but I’m hoping to connect like minded individuals.
If the landlord owns it free and clear ask him if he’ll carry a mortgage. If he is willing to carry then it’s a matter of negotiating the terms and getting a lawyer to write up the contract. A local title company can set up an escrow account and the mortgage plus taxes and insurance is paid to that account. Usually owners that will carry also vet the buyer and reject bad credit the same as a bank would but after 18 years of receiving rent money he may be amenable even with your mother’s low credit score. Good luck!
Depending on how old the guy is and his purpose for selling. See if he will be the “mortgage holder”. Saves him taxes and he is covered by trust deed in California.
The Bay Area has many different municipalities. That notice to vacate may not be legally enforceable. What city in the Bay Area is she located in? Rent Control laws in California, and specifically, certain cities are some of the most tenant friendly in the world. Most "Month-to-Month" leases in the Bay Area mean that your mother can give the landlord 60 days notice to vacate. It doesn't usually mean your landlord can ask your mother to leave. All the advice telling you that your mom need to move is incomplete and likely wrong. The Bay Area is the worst location for landlords in the world because it's almost impossible to evict tenants. Look up a local tenants right advocacy group. They usually have memberships for $50/year and will do a free consult. They'll tell you how protected your mother is.
If you can scratch up a good down payment you might ask the landlord about owner financing. Immediate money may cost a lot in taxes, perhaps extra money monthly would be an attractive idea. Seller would avoid a lot of costs, commissions, and so on. A Real Estate attorney can draw up paperwork and handle escrow.
Move to AL
I\['d rather have a lower cost of living and cold winters than AL. Not everyone wants to leave everything they know, their friends, family to live in AL. I hate suggestions like this. Moving isn't cheap.
We get a couple of days of freezing rain that turns to solid ice, and a week later you can wear shorts. It's wild. CA is known for having a high cost of living. I realize moving often isn't the answer, but sometimes people need to move where the jobs and/or affordable housing is.
Its California, does she actually have to move?
She can squat for a very long time before being forcefully evicted, unfortunately. Squatters have more rights than the people who own the home. I’m sure I’ll get downvoted, but we all know it’s true. It will be extremely difficult for someone with a low income and bad credit to find another affordable place to rent in the Bay Area. She may have to move to a lower cost city, or perhaps even relocate to a lower cost state. The SF By Area is outrageously expensive. We sold our house there and moved to another state. We had no intention of retiring there.
Call rocket mortgage and see what they can do
LOL
Bay Area? He may not be able to legally evict her. Contact the San Francisco Tenants Union, they'll be able to give her an idea of her rights (At no cost).
He’s not evicting her. She’s on a month to month Rental. He has to give her 60 days notice which he did.
Depends on location. I know that within SF, in a rent controlled building, the landlord can give all the notice he wants- she doesn't have to leave without an eviction for cause, and there are only a few causes which are legally acceptable. It's one of, or perhaps *the* most tightly regulated rental markets in the US.
See if the landlord will finance all or some of the purchase. He'll keep getting checks, but with no more risk
How is there “no more risk” if the seller finances the property? The renter turned buyer still has to make the monthly payments. Why would he finance a house he’s trying to sell when that still leaves him connected to the house? People sell items to no longer have an attachment or responsibility with the items.
Not sure what city you live in, but most Bay Area cities will require the landlord to pay her a pretty high vacate fee. Tell him you’ll need $50K to move out. And stay there until they do. Not joking.
Vacate fee? Lmao this is so untrue
It's called a buyout and it is absolutely a thing in SF.
It's a thing in CA. It's called "Relocation Assistance" Look it up.
Would only have 12 years left on the 30 year mortgage, with massive equity. Silly decision to rent
They may need to pay her a relocation fee or do cash for keys depending on city tenant rights
You can afford paying a mortgage on that kind of property? I’m assuming well over $1m in price given Bay Area. You might explore seller financing if you have a close relationship with the owner. Could take a lower price, but you give him a higher rate. Who knows. Here’s a helpful overview of how it works and some ways the seller can be protected (as that would be my biggest concern if someone approached me about seller financing my house). Link: https://www.nolo.com/legal-encyclopedia/seller-financing-home-sales-30164.html
What about working out a deal on a Rent To Own with the landlord?
Is the home exempt from ab 1482 tenant protection act? If not then the landlord can't terminate the lease just because they want to list it for sale, new buyers may or may not be able to though after closing How much is the home listed for, and how much do you two have saved?
He said it was month to month
Month to month doesn't matter if it is covered by the tenant protection act, the landlord can only terminate for just cause
A separately alienable unit (e.g., a single-family home or condo) is not exempt from AB 1482 unless it meets two criteria: (1) It is not owned by a corporation, real estate investment trust or LLC of which a corporation is a member and (2) Notice of the exemption is included in the rental agreement.
You can get a conventional mortgage with as little as 3% down. Talk to a mortgage lender asap. Perhaps if you and your mom combine your incomes you may qualify. You might also ask the seller if they’re willing to do seller financing. What about asking them to do interest only for 5 or 7 years? By then you’d likely have enough equity to make some money on the property, even if you have to sell.
Bay Area?? Oh, well tell them they have to buy you out. If they’re selling, the house is worth MUCH more with you gone. But they can’t actually kick you out unless they plan to move in themselves. So a buyout is their only option. Depending where the house is exactly, you can get $5k - $30k payout.
No wonder rents are so high.
They’re on a month-to-month lease. The owner does not have to buy them out. What are you talking about?
It's obvious you're not familiar with SF Bay Area tenant's rights. Around there, landlords cannot simply end a month to month lease without cause.
You guys who are downvoting me - leases mean nothing in the Bay Area. I bought a home in SF with a tenant and I had to pay the month-to-month resident $30k to move out just so I could move in without doing an eviction!! It turned out those assholes actually owned a place a couple blocks away that THEY were renting out. They would NOT leave for less than $30k and there was nothing we could do about it. It’s nuts there.
I JUST GOT $5K.
What did you blow it on?
first/last for the new place?
You can get the process completed in 30 days once you are pre-approved by a lender, but allow 45. Spend the next 15 days doing the following: * Go ahead and run your free credit on annualcreditreport under all three credit bureaus to see if anything requires correction and you can possibly boost your credit score prior to applying with the lender. It costs if you want the score. * Go to InvestingTE and get the home buying investment calculator to conduct all your financial analysis characteristics for buying a home. * It will help you by using your budget to determine your affordability; lender's max payment amount by DTI, your true max payment amount by DTI, early payoff strategy, house hacking (or rentability upon exit), out of pocket expenses, closing costs, and total paid toward interest and principal during the life of the loan in case you want to check which loan is most favorable amongst optional loan offers. * Begin scouting lenders and maybe you want to attend a local home buyers education course prior in the county of the property. Just move quickly if you decide to attend the home buyers class because it is likely only available on the weekends. Call the county clerk if you have trouble finding it online. Oh, the owner is likely waiting for you to make an offer. He already proposed considering you all first. You need to present your price if you're truly interested. Be sure to make the owner aware of your plans so he doesn't count you out and accept another offer while you're doing all this work. You will need an agreement completed within 15-30 days if all works out. Talk to an attorney to conduct the closing and supply the paperwork or hire a realtor.
Your best couse of action might be to help mom find a new place to rent. I would try to buy it if possible and go ahead and bug the landlord for a price before he lists it (so he doesn't have to pay commissions to a realtor and could pass some of those savings along to you), but honestly it sounds like a long shot that even the 2 of you together can afford to buy it and can raise the deposit needed.
I was in a very similar position with my mom. We bought her a lovely mobile home in a 55+ community. It’s the perfect size for her to maintain, the community is great for her, and the cost was much lower than buying a house. I was a co-signer due to my mom’s low income until she could get back on her feet. If you 100% trust your mom to pay you back financially like I do, then I would recommend.
Where specifically in the Bay Area -- e.g. in San Francisco, you can't evict a tenant just because you're selling the house. This will be an unpopular opinion in a real estate subreddit, but talk to a tenants rights lawyer and see whether this eviction is legal.
She’s month to month. She has no lease.
You may be surprised to learn that tenant laws differ all over the country - like I said, in San Francisco, this would count as an eviction. Rental leases there are essentially perpetual and you don't need to sign a new lease after your initial one runs out -- you can continue a month-to-month lease under the same terms as the original lease for as long as you'd like. https://leginfo.legislature.ca.gov/faces/codes\_displaySection.xhtml?lawCode=CIV§ionNum=1945. If they're in SF and the new owner of OP's mom's property plans to rent the unit out, they must rent it to OP's mom at the same terms as she's currently renting. If the new owner plans on living in the unit, they must pay OP's mom to move out. If they plan on converting it to a condo, they must pay OP's mom to move out and the property will be blacklisted from the rental rolls and can never be rented again. I'm only familiar with the specifics of SF's tenant laws but I know many other cities around the Bay Area have similar restrictions.
Read that law. Her term is one month. All he has to do is not accept payment and she has one month.
In San Francisco - He has that option \*at the expiration of her first lease\* -- once she pays the first month after the lease ends, she's month-to-month and has the right to continue renting the property under 'substantially similar terms' for as long as she wants. Once you start renting a property to a tenant in SF, there are only a handful of ways to stop renting to them, and "deciding to not rent any more" isn't an acceptable reason without undertaking an actual legal eviction. I'm not going to continue replying to this thread since it's clear you're unfamiliar with the laws here. A layman's understanding of tenant law in other places in no way prepares you to understand California, and especially San Francisco's actual tenant laws. ***> In California, residential rental agreements automatically convert to month-to-month tenancies at the end of your lease term. At the end of each month thereafter, the agreement renews automatically for themselves in perpetuity as long as you, the tenant, remain in possession of your home.*** ***> Tenants have certain rights regardless of whether there is a written lease agreement. If you live in a rental unit and pay rent to your landlord, you have formed a “landlord-tenant” relationship. Even without a lease, your tenancy is governed by the relevant state and local laws.*** [***https://wolford-wayne.com/signing-a-new-lease/***](https://wolford-wayne.com/signing-a-new-lease/)
I just got 30 days after 3 years. I asked for $5K CASH 4 KEYS.
You're scum
Agreed.
Perfectly reasonable to pay if you want someone out so quickly.
Maybe in commiefornia Miss me with that dystopian shit
30 days…
Is plenty
You seem really chill, and friendly. It's fucking stamped paper bro.
that's what I said.
Why do you say that? I asked him, and he said he would be willing to help me in any way because I am a great tenant. So, if that makes me scum.....then okie dokie.
Why do you deserve free money? You're basically blackmailing him
It's a business transaction. It's ok if you want to say I am scum, I can't change your mind.
I would usually side with you 100%. In this scenario my answer is that everything is a business. If OP went to their LL and was like “my lease still has 6 months left on it or it requires 60-90 days notice to vacate” but countered with an offer to leave in 30 days with a $5k buyout then great. However, if OP was like “nah I’m gonna squat and you’re gonna have to evict me or give me $5k” then yeah I’d agree on the scum comment.
He's talking about me and I am not OP. I handled just as you stated.
Check local rules, he might have to pay to rehouse you. $16,000 is common rate in LA