Landlord defaulted and didn't tell me

[Tre]

Actually, he did finally tell me that he'd defaulted on the mortgage, but he withheld that information for almost 2 years until the foreclosure sale was 60 days away.  No, he wasn't legally obligated to inform me that he'd stopped paying on my studio/office, but I am ticked off.

I went to the public auction last week, but no bid was entered, so it went back to the bank at $345K.  A couple of people had stopped by the property and one seemed like a serious buyer who hoped it could be leased out right away, but his group decided against it.

At this time, I'm squatting on the property.  The bank says they'll pay me to vacate, but haven't given me an amount yet.  

But even though it would mean taking on another 30-year mortgage, there's a part of me that wants to buy the property for less than one-half of what the original asshole owner paid, just to piss him off...especially since the monthly nut would be about the same.  

From a business perspective, it is a reasonable, long-term investment.  

[johnnynoname]

I see


so, tell me Tre, how long have you confused this forum for your diary?

[Board_SHERIF]

Actually, he did finally tell me that he'd defaulted on the mortgage, but he withheld that information for almost 2 years until the foreclosure sale was 60 days away.  No, he wasn't legally obligated to inform me that he'd stopped paying on my studio/office, but I am ticked off.

I went to the public auction last week, but no bid was entered, so it went back to the bank at $345K.  A couple of people had stopped by the property and one seemed like a serious buyer who hoped it could be leased out right away, but his group decided against it.

At this time, I'm squatting on the property.  The bank says they'll pay me to vacate, but haven't given me an amount yet.  

But even though it would mean taking on another 30-year mortgage, there's a part of me that wants to buy the property for less than one-half of what the original asshole owner paid, just to piss him off...especially since the monthly nut would be about the same.  

From a business perspective, it is a reasonable, long-term investment.  

Don's be to harsh man, the guy is probably going through hell to save his investment and living on no sleep etc...

[_bruce_]

Can't give you advice.
Hope it somehow turns out good for you.

[Vince G, CSN MFT]

Actually, he did finally tell me that he'd defaulted on the mortgage, but he withheld that information for almost 2 years until the foreclosure sale was 60 days away.  No, he wasn't legally obligated to inform me that he'd stopped paying on my studio/office, but I am ticked off.

I went to the public auction last week, but no bid was entered, so it went back to the bank at $345K.  A couple of people had stopped by the property and one seemed like a serious buyer who hoped it could be leased out right away, but his group decided against it.

At this time, I'm squatting on the property.  The bank says they'll pay me to vacate, but haven't given me an amount yet.  

But even though it would mean taking on another 30-year mortgage, there's a part of me that wants to buy the property for less than one-half of what the original asshole owner paid, just to piss him off...especially since the monthly nut would be about the same.  

From a business perspective, it is a reasonable, long-term investment.  

Damn, that's fucked up.  A lot of people are doing that kind of shit nowadays in collecting rent on defaulted property

[240 is Back]

send muscle builder chicks to beat him senseless.   than charge him $145 per hour for it.  

repeat until you feel you've been vindicated.

you can also sell the stream online, we'd like to see it and it's only fair we throw a few dollars at the cause.  can't let the muscle mansion go back to the bank.

[Borracho]

They can't kick you out...check your local laws. Same thing happened to me and by law the new landlord/owner had to abide by my lease agreement with the previous owner.

[Twaddle]

What's your monthly rent, and can you get your payments that low?  It's pretty simple.  Talk to the bank and tell them you're interested.  Prove to them that you've been a good paying lessee, and see if they can work with you to get the mortgage payment you need.  You'd have to figure in mortgage, taxes, pmi, etc.  If you can't afford it, then let them buy you out of the lease, and use that money towards something else. 

It's a buyers market right now, and banks don't like to sit on forclosed properties.  They might cut you a sweet deal just to wash their hands of it.  When you go to negotiate, tell them the place needs a lot of repairs that you're willing to take care of.  Make them think it's a shithole.

[Tre]

I see


so, tell me Tre, how long have you confused this forum for your diary?

For years.

But almost all of those diary entries are requests for advice, even when written as declarative statements. 

[Tre]

Don's be to harsh man, the guy is probably going through hell to save his investment and living on no sleep etc...

Ordinarily, I'd agree, but he's late 50s, retired from a state job, and living in Hawaii.

I really hate the government worker racket here in CA.

[Ron]

Forget your anger, sit down, use your business sense, and figure out if this house and owning it, along with the taxes, insurance, upkeep is worth it for you.   There are advantages of owning a house over renting, but only to some.  Can you afford it? Will it be around the same as your rent (with all the other costs). How much can you deduct at the end of the year from your tax returns.

Can you use a portion of the home for your home business of photography, place of office, etc (only 15% max of expenses)?  Most people buying a house don't figure out if it is really worth it, and they want to stay in one place for a long time.

[Tre]

send muscle builder chicks to beat him senseless.   than charge him $145 per hour for it.  

repeat until you feel you've been vindicated.

you can also sell the stream online, we'd like to see it and it's only fair we throw a few dollars at the cause.  can't let the muscle mansion go back to the bank.

LOL!!!

They can't kick you out...check your local laws. Same thing happened to me and by law the new landlord/owner had to abide by my lease agreement with the previous owner.

Because it's bank repo, I get 90 days, but the county office told me that if a private party had bought it at auction, if they were moving in, a differently law would have applied. 

[G_Thang]

Can you use a portion of the home for your home business of photography, place of office, etc (only 15% max of expenses)?  Most people buying a house don't figure out if it is really worth it, and they want to stay in one place for a long time.

isn't it based on square footage? i'm trying to use a room for an office and the entire garage for storage.  you're saying i can only use 15% of the total sq ft?

[jwb]

Is this a house or office?

[Tre]

What's your monthly rent, and can you get your payments that low?  It's pretty simple.  Talk to the bank and tell them you're interested.  Prove to them that you've been a good paying lessee, and see if they can work with you to get the mortgage payment you need.  You'd have to figure in mortgage, taxes, pmi, etc.  If you can't afford it, then let them buy you out of the lease, and use that money towards something else. 

It's a buyers market right now, and banks don't like to sit on forclosed properties.  They might cut you a sweet deal just to wash their hands of it.  When you go to negotiate, tell them the place needs a lot of repairs that you're willing to take care of.  Make them think it's a shithole.

Thanks, and this makes sense.

Monthly rent is $2250. 

Mortgage would be $1600, plus about $400 property tax, $100 insurance, and $200 HOA (grrr). 

It's a safe purchase, because rents on similar properties are $2500-2700.  Even with the housing crash, there's never been any depression in rental costs here in NorCal.  So, even if something happened to me and I couldn't make the payments anymore, it would be pretty easy to rent it out. 

Forget your anger, sit down, use your business sense, and figure out if this house and owning it, along with the taxes, insurance, upkeep is worth it for you.   There are advantages of owning a house over renting, but only to some.  Can you afford it? Will it be around the same as your rent (with all the other costs). How much can you deduct at the end of the year from your tax returns.

Can you use a portion of the home for your home business of photography, place of office, etc (only 15% max of expenses)?  Most people buying a house don't figure out if it is really worth it, and they want to stay in one place for a long time.

You're right.  Anger is a really bad reason to make major decisions like this.  Ideally, an investment group would buy it, keep my rent the same, and lease it back to me for as long as I want to stay.  It's a well-built property and I've taken good care of it. 

I need to figure out all the tax implications.  It's where I work (where I live is down the hill), so while the interest would be deductible, that amount would decrease over time.  Ugh, just one more reason why the personal income tax is bullshit!

Is this a house or office?

It's a single family home, but I've got it set up as my office and studio.  Even though it's not zoned for commercial use, because there's no significant vendor/customer traffic, I don't have any issues with the HOA and the city doesn't care as long as I pay for my biz license annually. 

[tbombz]

home values are only going up

[tbombz]

It's a buyers market right now,

define "buyers market"

everything on the market is getting dozens of buyers and selling at or above asking price

[Samourai Pizzacat]

I see


so, tell me Tre, how long have you confused this forum for your diary?

I laughed hard!

[BayGBM]

Q: I am a renter in a house that is being foreclosed on. Does our lease still hold true even though the bank might take over at any moment? Should we still be paying our landlord although he doesn't make payments on the house anymore?

A: Yes and yes. This is a very common question and we have dealt with it here before. But because I am asked it so much, it bears repeating. Through the end of 2012, the federal Protecting Tenants in Foreclosure law provides that tenants with a valid lease can complete the terms of their leases with the foreclosing lenders. You still have to pay the rent to your current landlord as long as he or she owns the property. Otherwise, you can be evicted. The fact that your landlord is not paying on the mortgage does not matter. Once the bank forecloses, do not pay the landlord because the bank now owns the property. You will have to pay the rent to the foreclosing lender.

[jwb]

define "buyers market"

everything on the market is getting dozens of buyers and selling at or above asking price

He isn't talking about Canada.

[tbombz]

He isn't talking about Canada.

central valley california bro, houses are dirt cheap, prices bottomed out about mid last year.. been rising slowly for a while now, markets flooded with buyers looking to invest

[jwb]

central valley california bro, houses are dirt cheap, prices bottomed out about mid last year.. been rising slowly for a while now, markets flooded with buyers looking to invest

$345k is still a lot for a wooden box.

[Twaddle]

central valley california bro, houses are dirt cheap, prices bottomed out about mid last year.. been rising slowly for a while now, markets flooded with buyers looking to invest

That's great in your eden.  Try the other 99.5% of the country. 

[Twaddle]

Thanks, and this makes sense.

Monthly rent is $2250. 

Mortgage would be $1600, plus about $400 property tax, $100 insurance, and $200 HOA (grrr). 

It's a safe purchase, because rents on similar properties are $2500-2700.  Even with the housing crash, there's never been any depression in rental costs here in NorCal.  So, even if something happened to me and I couldn't make the payments anymore, it would be pretty easy to rent it out.  

1600+400+100+200 = 2300.  You also need to figure for pmi and monthly upkeep of the place.  Anything that breaks would now be your responsibility.  How is the HVAC, electricity, plumbing, etc.  Also, figure the ampount of interest you'll be paying to the bank, and you can right that off on your taxes.  If you like the place, and you see yourself living there for a while, then go after it aggresively.  If you don't think you'll be there for long, then cut your losses and get out. 

[_bruce_]

1600+400+100+200 = 2300.  You also need to figure for pmi and monthly upkeep of the place.  Anything that breaks would now be your responsibility.  How is the HVAC, electricity, plumbing, etc.  Also, figure the ampount of interest you'll be paying to the bank, and you can right that off on your taxes.  If you like the place, and you see yourself living there for a while, then go after it aggresively.  If you don't think you'll be there for long, then cut your losses and get out. 

Agree.