Very funny story about a seller….I got a call from a very irrate friend who wanted to sue her realtor for “making” her buy a rental property that is now $44K upside down. She needed my help to write up her case against this realtor.
So, she bought the home in August of 2007 for $202K. The latest comps in the area show that her suggested listing price if she wanted to sell now is $155K. So she wants to sue the realtor for her $47K “loss.”
She put 0% down and the builder paid all her closing costs. Her total mortgage was $1988 per month. She rented the house immediately and was able to get $1100 so her total monthly negative was $888. Her first mortgage payment was due in October and since then she has paid $6,216 toward the mortgage. Also in October, the realtor sent her a “client reimbursement” for $2000. So now, her total out of pocket to date is $4,216. Now, on top of that, she can write off her negative and other landlording related expenses on Schedule E of her tax return and would stand to write off up to $26K from her adjusted gross income.
Now she is furious. First because she is $47K upside down and second because she really doesn’t have much of a case against her realtor. What a conundrum!
