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cdog
03-08-2007, 10:59 AM
So my friend rents a brand new home in Temecula that is 4000+ square feet for $1800 a month. The home at the peak of the market was going for around 780k and I believe the so called investor paid somewhere around that for it. Taxes are 1.8%. I pulled the title on it for him and the owners owed 510k and had multiple refi's. He's rented the place for almost 2 years now and the owner has never showed any interest in fixing any issues with the home. Broken tiles ect...
Well, he gets a Foreclosure letter yesterday and has to be out in 60 days. His wife spoke to the management Co. and they said the investor company has now defaulted on 83 homes that they manage in the Temecula/Murrieta area. All at the same time.......
The guy across the street from him owns his home any pay's 4k a month for his mortgage. It's unknown what terms or if that includes taxes but when my friend had that conversation with this guy he was already behind on 2 payments and just about passed out when he found out that my friend pays 1800 a month in rent. Some crazy shit!!!!

bigq
03-08-2007, 11:29 AM
This is why we rent, cant make that up in tax write offs...;) I pay 1550 for 1900 sq ft on 1/2 acre. I like it that way....:D I can't imagine a 4-5k house payment.:eek:

Jbb
03-08-2007, 11:31 AM
This is why we rent, cant make that up in tax write offs...;) I pay 1550 for 1900 sq ft on 1/2 acre. I like it that way....:D I can't imagine a 4-5k house payment.:eek:
lol.....I cant imagine 1550......or 1900 sq ft....or 1/2 acre....:D

dirty old man
03-08-2007, 11:38 AM
I can't believe $1800 for 4,000 sq ft!!! He should work with the bank to stay on and take care of the place until its resold (a few times)

2Driver
03-08-2007, 11:43 AM
People that say it has bottom-ed are dreaming.
All the day to day foreclosures, investors defaulting and last night I heard about several lending institutions going belly up due to bad lending. Wait until those blocks of homes start to flood the already heavily inventoried market. I'm not a "sky's falling" kind of guy but this thing still has some downward direction to go.

dumbandyoung
03-08-2007, 11:46 AM
83 homes?? holy shit!

HighRoller
03-08-2007, 11:47 AM
The newest problem is that lenders are starting to go back up the food chain and wanting banks to buy back the "garbage loans" that are so common these days. It's like interest only hot potato and the game is just getting started. This is the result of people thinking the real estate market was going to keep doubling every 3 years forever so they put all their eggs in one basket trying to get rich overnight. Now they're bankrupt. I guess it's too bad for them that financial stupidity isn't illegal.

boatnam2
03-08-2007, 02:33 PM
we have the 1.8 taxe rate in our neighbor hood and it is a big hit on the payment over 12k a year...on our street there are 4 or more houses that have never been moved into just dont get it. if a investor owns them they have sit on them for 2 years now and its not getting any better i wonder why.

Hotcobra270
03-08-2007, 03:01 PM
Damm!
Yup, it has been a good renter's market the last few years

CA Stu
03-08-2007, 03:38 PM
Put your money in the stock market instead!
http://finance.yahoo.com/q?s=new
Thanks
CA Stu

Deano
03-08-2007, 03:58 PM
Put your money in the stock market instead!
http://finance.yahoo.com/q?s=new
Thanks
CA Stu
Imagine shorting that a couple months ago:jawdrop:

cdog
03-08-2007, 03:59 PM
Put your money in the stock market instead!
http://finance.yahoo.com/q?s=new
Thanks
CA Stu
:D
http://www.***boat.com/image_center/data/500/troll.jpg

lucky
03-08-2007, 04:01 PM
I can't believe $1800 for 4,000 sq ft!!! He should work with the bank to stay on and take care of the place until its resold (a few times)
he should go to the bank and buy it for pennies on the dollar

cdog
03-08-2007, 04:04 PM
he should go to the bank and buy it for pennies on the dollar
I advised him to do so right after his Carliton Sheets (get rich or go broke tryin) tape comes in the mail. Everyone's doin it!!:D

Mandelon
03-08-2007, 04:35 PM
he should go to the bank and buy it for pennies on the dollar
99 pennies. The banks are not fireselling these homes. Around here they are selling at market prices....
Some of the agents we do homes for have 100+ listings and 40 or 50 in escrow now.

Big Warlock
03-08-2007, 05:11 PM
He should contact the bank and try to take it over. Take a first for the $510K and then get a $100K or $150K line of credit. Then he can use the line to make mortgage payments. In the meantime, take $20K or whatever to fix the place up and put it on the market. By my math, he should be able to get it fixed up and sold in 6 months. Should clear $100 grand even if he sells it under market value.
If not, have him PM me and I know people that do that sort of thing out there.
Rob

Mandelon
03-08-2007, 06:04 PM
I bet he owes more that that on the house. But.....iIf the owner is going to lose it, anyway...have your buddy ask for the house. The owner ought to give it up for free. Your buddy can bring it current for 20,000 or whatever the arrears is and make the $4000 a month payments.......and try to flip it.
Dangerous in this market. Homes are selling, but prices are dropping.
or move somewhere else for $1800 a month. :rolleyes:
I bet the house is about $150K less than the peak value though.....:idea:

C-2
03-08-2007, 06:57 PM
Sounds like it's too late, it's already REO?

cdog
03-08-2007, 07:18 PM
There are quite a few for sale for 625k in the area that are not selling. A deal with no agent would be around 550k. With the 1.8% tax rate I don't think he can afford it. The monthly property tax would be half what he pay's for rent......:eek:

CA Stu
03-13-2007, 11:42 AM
Imagine shorting that a couple months ago:jawdrop:
Did I call that one or what? :mad: :D
Thanks
CA Stu

Chromegorilla
03-13-2007, 12:09 PM
So...in the 5 years I've been married my wife has managed upscale apartments and we have lived in them for free. We were thinking of buying our first home this year..... and the way things are going it looks like we should wait a few more months...ie maybe fall or winter to go ahead and buy..... hmmmm
Glad I'm buying this year and not selling.....:jawdrop:

C-2
03-13-2007, 12:11 PM
So...in the 5 years I've been married my wife has managed upscale apartments and we have lived in them for free. We were thinking of buying our first home this year..... and the way things are going it looks like we should wait a few more months...ie maybe fall or winter to go ahead and buy..... hmmmm
Glad I'm buying this year and not selling.....:jawdrop:
The fun is just starting....wait until inventories soar after a year or three, then buy. REO is still not a good deal - yet.
It's fun being a dooomer-gloomer.:D

Chromegorilla
03-13-2007, 12:13 PM
The fun is just starting....wait until inventories soar after a year or three, then buy. REO is still not a good deal - yet.
It's fun being a dooomer-gloomer.:D
I think if I hold out a lil longer well do pretty well. We're looking in the North Florida area.

cdog
03-13-2007, 01:27 PM
The home was purchased in 05 for 735k. First TD for 514k and a second for 145k. Pretty ugly deal. That's $13,230 in property tax and assessments. Taxes have not been paid on this property since purchased and market price in that area is low 600's. The property mgr. say's they are going out of biz due to all the bad press and my friend has no chance in hell to get his deposit back so he will not be paying next months rent. He will be out $450 bucks in the end unless he squats.
Thanks Greenspan. Fin retard.....

Sportin' Wood
03-13-2007, 01:34 PM
The home was purchased in 05 for 735k. First TD for 514k and a second for 145k. Pretty ugly deal. That's $13,230 in property tax and assessments. Taxes have not been paid on this property since purchased and market price in that area is low 600's. The property mgr. say's they are going out of biz due to all the bad press and my friend has no chance in hell to get his deposit back so he will not be paying next months rent. He will be out $450 bucks in the end unless he squats.
Thanks Greenspan. Fin retard.....
Go Squater as long as possible I would. Just keep the bags packed.:D

Wet Dream
03-13-2007, 01:40 PM
I was just getting ready to snatch up a couple of investment properties, duplexes. I might just wait to see what happens with some of the homes in the area. but we aren't as high strung out as CA.

C-2
03-13-2007, 01:55 PM
The home was purchased in 05 for 735k. First TD for 514k and a second for 145k. Pretty ugly deal. That's $13,230 in property tax and assessments. Taxes have not been paid on this property since purchased and market price in that area is low 600's. The property mgr. say's they are going out of biz due to all the bad press and my friend has no chance in hell to get his deposit back so he will not be paying next months rent. He will be out $450 bucks in the end unless he squats.
Thanks Greenspan. Fin retard.....
Not a bad take for the owner, who wlked away with the $145K second. :sqeyes:
Tell your friend that getting caught up in a UD as a renter is not wise. An eviction filing will follow him for 7 years, and the difference he will pay as a "high-risk" tenant will end up costing him thousands, perhaps tens of thousands of dollars in the longrun. He might be able to explain it away for the first few years, but it's still not worth the continued damage to the credit score.

Wet Dream
03-13-2007, 02:11 PM
Its bittersweet watching these stories and how one person straps his ass into debt just to have the neighbor with a similar floor plan and same financial woes. We bought this house 6 years ago. 15 year mortgage, bi-weekly payments, fixed. Home is 2600 sf, but thats only the first and second floors. The full basement and full attic don't count toward the actual 4300 sf and the lot across the street. The payment was $89 every 2 weeks :D

cdog
03-13-2007, 02:13 PM
I mentioned the squatter thing as a joke. :D He's a good guy with morals so he's not looking for a free lunch or to screw anyone. The $450 buy's him an extra week. I suggested he find another home asap but now he needs to stay to get his money worth from the deposit.

shueman
03-13-2007, 02:56 PM
Go Squater as long as possible I would. Just keep the bags packed.:D
Yep....prolly good for at least 6 months or so...:)