San Diego Housing Bubble News and Analysis

Federal Renter Association? It sounds like a pyramid scheme name to me, akin to the Federal Chamber of Commerce.

While it the short term this may be compassionate, I'm betting phony and fraudie aren't doing this out of largess. Maybe they don't have the manpower to process evictions, or maybe some bright spark finally decided some cash flow was a good idea.

Either way, nobody is doing this to help out the renter.

Josh

I think it's great, people default, get them out of the house asap by offering to help them get a rental. Less damage to house and maybe quicken the process?

These are not "home owners" that did not pay their mortgage. They are rents that had crappy landlords who did not pay. I think Congress should pass a law to protect these renters.

If I were to buy a house that had a renter with a lease that still has 8 months left, I have to honor that lease. A bank that forecloses on a property does not. That bank lent the money to the crappy landlord or bought that crappy loan. They should not get to void leases.

I think it's a scheme to make the government the largest slumlord in the world. Eventually it will just own all the property and lease it to us until we die.

Mike,

I couldn't agree with you more! This is exactly what they are tickling the renter's to become lessors for life and next is curfews at 10pm. I just watched "Brazil" the movie again and started to see the future of America.

Ted Nugent

The only problem w/assisting the renters is there is always a way to buck the system.

As posted on SDL

"Here's what you do: When you know your home is going to foreclosure, you lease it to a confederate at below-market rates. Make the lease term the longest you think you can get away with. At least a year should be good in all jurisdictions, some might allow more. Instead of moving in, the confederate lets you stay there instead. You kick the rent back to them, perhaps with a little sweetener to maintain their cooperation. When the place is foreclosed, Fannie Mae allows the renters (theoretically your confederate, but actually you) to stay on. You stay in the same house for an extra year, at significantly reduced cost.

Example: You owe $3500/mo for your mortgage. You stop paying. At the latest acceptable time prior to the trustee sale, you sign a lease with your brother-in-law. Market rent is $2200/mo, but you lease it to him for $1600. You pay him the $1600 back each month plus $200 for his consideration. Effectively your total rent is $1800/mo. In one year you save over $20K vs. paying your mortgage, and $4800 vs. moving out and renting an equivalent place the normal (legal) way. If your confederate doesn't need to be paid (e.g., your parents, someone who owes you favors, false identity you concocted, etc.), then you save even more.

If you had the foresight to combine this with a couple of years of neg-am payments on your option ARM, followed by a slow foreclosure, you could end up having lived in a swell place for several years at below-market rates. The easy credit years just keep on giving.

(NB: the above does not in any way constitute an endorsement of the shameful and illegal practices mentioned.) "