1. It is difficult to sell in Temecula
2. The owner’s asking price is unrealistic
3. He is probably underwater
4. He is probably having an exotic mortgage that is resetting (payment amount going up).
There is a decent chance that the owner will default. In some of these situations, the owner continues to collect the rent from the tenant (even though he stops making payment to the lender).
When the lender forecloses on the house, the tenant will be given a notice to move. I am not saying that this will happen. But you need to be aware of that possibity.
