[quote=sdrealtor]jp
For the time being it does look like he’s renting it but he gets the upside which I doubt your landlord would share with you. he also gets to stay in the home he has lived in for a decade and does not have the cost or burden of re-locating.[/quote]
sdr – he gets the upside after how long? And that’s if there is any profit left over after he pays what he owes the lenders that are giving him a break now.
He gets to stay in the home – or he has to stay in the home. Sometimes moving is not a burden. Renters are not stuck. They move to a better place, smaller or bigger or better location. If they get a better job offer, they don’t have to worry about having to sell or rent out their place.
The landlord doesn’t share his profit w/a renter, if he has one after he pays the PITI (and MR/HOA) and maintenance). That’s true. The renter also has cash that is not tied in real estate that can be used to invest as he or she wishes.
But I don’t want to make this about owning or renting. I have done both and though I rent in San Diego, I own properties. Good and bad to both.
In the case of your friend’s loan mod, he/she must love this house and plans to be there long term.
