ritter1and2 0 Report post Posted July 15, 2009 Hello Michael C, I received the manual a few weeks ago and the information and forms are awesome. I have also been reading the forum almost every day and even with the search feature, WOW, that's a lot of information! I am trying to avoid any more Paralysis of Analysis so please forgive me if my question(s) have already been addressed. Thanks also for hosting this excellent forum and for giving such great support and humor. And no, this has NOT been a paid advertisement. Hello ALL, I would also like to thank all of you who help others. You are a great group of people to share your time, knowledge and experience. I live near a military base and have been sending emails to FRBO's through militarybyowner.com and militaryfsbo.com. I received this reply last night... "Hello Steve,As much as we would like to sell the house, we can't get out of it what we owe right now apparently. We had it on the market all last year but the market needs to recover a bit for us to sell. The current tenants have decided to sign another year lease, too. Thanks for the interest, though.Becky C" Finally, my question. How can we help these fine people in the military and others who bought a house 3 or 4 years ago, now owe more than it is worth, and are renting for what may or may not be years before the market turns around? Is there a CA or SLO solution for these reluctant landlords? I know we can't help everyone, I just wish I could help those who are motivated and are looking for a solution. In a declining market, can we only work with people who have a lot of equity? Would we then use comps from the lower end of the range to put together a CA? Thank you, Another "STEVE" Share this post Link to post Share on other sites
MichaelC 160 Report post Posted July 15, 2009 Hello, Steve, and welcome aboard! Your kind words about the book and board are much appreciated. Especially where the quality of our members are concerned. Best on the 'net I say!As for your question, you will find these days that there are many homeowners who will gladly follow along with everything you ask of them and are ready to sign on the dotted line today. Problem is, if they purchased their property in the past few years, chances are they are upside down. And depending upon their location in the US and the type of financing they used to buy it, they could be upside down by quite a bit. It no longer surprises me to speak with a homeowner who owes $300K on a house that might appraise for $200K. Then you talk further and you realize their monthly payment is $3K and the rental market is $1,800. Ouch. Ain't nothing you can do for them with regards to any type of lease purchase deal. No sandwich lease, no CA. Sad situation, but one that is quite common these days. Share this post Link to post Share on other sites
randian 0 Report post Posted July 17, 2009 Ain't nothing you can do for them with regards to any type of lease purchase deal. No sandwich lease, no CA.That isn't, strictly speaking, true, although they might throw you out (or worse) after you make your offer. Market rent at $1800 and they owe $300k? Offer them a 10 year sandwich at $1200 for $300k. Lease it as a regular rental for a nice cash flow, sell for a profit when the market turns around. Share this post Link to post Share on other sites
lorenwoods2 0 Report post Posted July 22, 2009 Ain't nothing you can do for them with regards to any type of lease purchase deal. No sandwich lease, no CA.That isn't, strictly speaking, true, although they might throw you out (or worse) after you make your offer. Market rent at $1800 and they owe $300k? Offer them a 10 year sandwich at $1200 for $300k. Lease it as a regular rental for a nice cash flow, sell for a profit when the market turns around. Without being too much of a debbie downer or getting too political... But you say "sell for a profit when the market turns around." I am not a pessimist by nature...but what makes you so sure things will just turn around? You have a President (*cough* communist *cough* Marxist) saying, heeeey dooooon't wooooorry about it if you can't make your mortgage payments, relax...you can just give your home over to us and rent from the government, whaaat the (expletive)???? If that comes to fruition... the housing market will never recover, with the U.S. government being a landlord! America is in a transitioning phase...but where are we going??? I don't know...and I don't think anyone knows... Oligarchy? Socialists? fascists? communists? This is scary stuff. We are abandoning the capitalism way, because of a handful of greedy capitalists like Madoff to name one of a few... and making everyone equal.... and hard work, desire, and motivation are things that are being punished... and that doesn't even take into account the high increase in state taxes...AND that Obama is going to screw the middle class on taxes that won't even come close to paying for all his breathtakingly stupid ideas like the government running healthcare and cap and trade. You do not raise taxes when an economy is trying to come out of a recession, you simply do not do it...he lacks the fundamentals of knowing what made this economy great. And then you have someone like Barney Frank recently within the past couple weeks saying... that freddie and fannie need to be taking more risks...and lowering their lending standards even more, when lowering lending standards to meet minority quotas is the one of the MAIN things that caused the housing collapse along with land use restrictions. HELLO! lowering lending standards creates MORE foreclosures Mr. Frank and congress! Government regulation is why the economy stinks to high hell right now... and they want to intervene more??? If that is the case, count me emphatically out of real estate investing in any capacity. Because you can not design a better way to cause the collapse of America by continuing and increasing the lowering of lending standards. I wish I could say when the market turns around...but there is no evidence it will in my opinion... Share this post Link to post Share on other sites
MichaelC 160 Report post Posted July 22, 2009 If nothing else, this board also serves as a blood pressure valve I hear ya, lorenwoods. I don't think I'm as pessimistic as you might be. But clearly there is cause for concern with what is going on. The ace in the hole for this Administration is that the media is fully complicit and has abandoned the idea of the media as a nonpartisan entity reporting the facts, rather than pushing their agenda. So the vast majority of the American public is blissfully unaware of what is happening. Share this post Link to post Share on other sites
lorenwoods2 0 Report post Posted July 22, 2009 If nothing else, this board also serves as a blood pressure valve I hear ya, lorenwoods. I don't think I'm as pessimistic as you might be. But clearly there is cause for concern with what is going on. The ace in the hole for this Administration is that the media is fully complicit and has abandoned the idea of the media as a nonpartisan entity reporting the facts, rather than pushing their agenda. So the vast majority of the American public is blissfully unaware of what is happening. Ha! ya that was a bit of a rant... and a bit off topic...although related. I know you are a smart guy Michael, and have talked with you on the phone a couple times. And although i have a pessimistic viewpoint with what is going on...I am happy that you are not as pessimistic as me...and gives me a bit more hope then I currently have about the potentially disastrous outcome with all the new policies and nationalization of everything. Share this post Link to post Share on other sites
Andrew Ikeda 0 Report post Posted July 22, 2009 Hey Everyone! Thought I'd throw in my 2 cents. Ok, before you jump the gun on this idea, let me explain. Steeler, have you considered telling them about loan modification? MC posted an article about loan modification scams in FL so yes, be careful with that. I just read that NO company can charge an up-front fee for doing loan modifications unless they are licensed real estate lawyers. I've been investigating this over the past week and am looking into several mortgage companies that offer loan modification in all 50 states. Again, I'm throwing caution to the wind on this to make sure things are legal. My understanding is that loan modification can help borrowers lower their interest rate, extend the term and/or forgive lates or even a few (within limits) non-payments. I'm not an attorney so please do not take all this as fact. But it is something worth looking into to help people out there. If and when I do get involved in this, I will offer a referral fee (if legal) to investors who bring me leads that consumate this type of transaction. This is still a 'work-in-progress' at this time. A good buddy of mine got killed on some refi's lately. The borrowers had too much and the appraisals came in to low. For many people out there, their only option will be loan modification if they want to avoid foreclosure. Hope this helps. Andrew Share this post Link to post Share on other sites
