How much impat for renters?

[Navydoc]

After reading these posts these past few weeks I’ve come up with an interesting question. If such a large portion of the houses in SD were leveraged by neuvo-investors with exotic financing, I’m assuming a significant percentage are rented out. What happens to the tenants if these mortgages are defaulted on? Can you sue the former owner for moving costs? And will this have a snowball effect on the rental market?

I bring this up because I’m currently renting up here in Carson, and the owner’s closed equity the week before we moved in. Now I’m not certain, but the owner’s didn’t appear to be able to fully service a $700,000 property, and I’ll give even money there’s a 2/28 on my place. Fortunately we will have fled for the SD hills by the time it resets, but if that were not the case I could see some real potential to have to find a new place to live in 2 years.

I’m sure this situation is by no means unique. And if this has been discussed before, accept my apologies, I’m relatively new to the forum.

[5yes]

Renters have to be aware of the situation they are getting into. This could be a good opportunity for us – I am renting at less than half market rent in Temecula because the homeowner’s 2/28 is resetting next month. (Payments are jumping from $1800-$3500) They hired a lawyer and are fighting to keep their house and just want someone reliable that will provide a small income and rent month to month. I see this whole decline as an opportunity to save a lot of money on my rent costs and eventually buy something at a reasonable price. If I have to move I can take my pick of any one of hundreds of people in similar situations. I wasn’t dumb enough to take out a mortgage I can’t afford and now I can further benefit from these people’s lack of sense. Thanks to this site I feel affirmed for not buying in the last few years when all of my friends did, and they were very vocal making fun of my husband and me when we kept renting, but no one says anything to us about it now!

[5yes]

Renters have to be aware of the situation they are getting into. This could be a good opportunity for us – I am renting at less than half market rent in Temecula because the homeowner’s 2/28 is resetting next month. (Payments are jumping from $1800-$3500) They hired a lawyer and are fighting to keep their house and just want someone reliable that will provide a small income and rent month to month. I see this whole decline as an opportunity to save a lot of money on my rent costs and eventually buy something at a reasonable price. If I have to move I can take my pick of any one of hundreds of people in similar situations. I wasn’t dumb enough to take out a mortgage I can’t afford and now I can further benefit from these people’s lack of sense. Thanks to this site I feel affirmed for not buying in the last few years when all of my friends did, and they were very vocal making fun of my husband and me when we kept renting, but no one says anything to us about it now!

[5yes]

Renters have to be aware of the situation they are getting into. This could be a good opportunity for us – I am renting at less than half market rent in Temecula because the homeowner’s 2/28 is resetting next month. (Payments are jumping from $1800-$3500) They hired a lawyer and are fighting to keep their house and just want someone reliable that will provide a small income and rent month to month. I see this whole decline as an opportunity to save a lot of money on my rent costs and eventually buy something at a reasonable price. If I have to move I can take my pick of any one of hundreds of people in similar situations. I wasn’t dumb enough to take out a mortgage I can’t afford and now I can further benefit from these people’s lack of sense. Thanks to this site I feel affirmed for not buying in the last few years when all of my friends did, and they were very vocal making fun of my husband and me when we kept renting, but no one says anything to us about it now!

[Navydoc]

5yes I know exactly what you mean. It hasn’t completely died out yet, just last month I had a friend try to convince me to buy a wonderful “investment property” in 4S Ranch.

[Navydoc]

5yes I know exactly what you mean. It hasn’t completely died out yet, just last month I had a friend try to convince me to buy a wonderful “investment property” in 4S Ranch.

[Navydoc]

5yes I know exactly what you mean. It hasn’t completely died out yet, just last month I had a friend try to convince me to buy a wonderful “investment property” in 4S Ranch.

[cr]

I rent in LA from an older real estate agent who has our place paid off. It doesn’t have the ammenities of a high end place, but I was in a 1Br for 3 years and $750/mo, no increases. I just moved into the 2br to wait this housing crash out. It’s a triplex and the family in the back has been in a larger 2br 14years and has seen 3 rent hikes. Their monthly rent now? $800/mo.

Without a doubt those negatively affected by poor refi or purchase decisions on rental properties will definately be looking at their tenants for help. But they can’t arbitrarily raise it without fallout. If it’s too high, move. If they foreclose, maybe you can get a good deal on it, if not you move. It’s a pain, but you’re still better off.

If you can, find a landlord with the building paid off, not brand new or top of the line, but low rent. It’s a great place to wait it out.

People forget that owning the property isn’t all it’s cracked up to be. Would you rather be stuck holding the cash or the property? If you rent responsibly you will have the former.

[cr]

I rent in LA from an older real estate agent who has our place paid off. It doesn’t have the ammenities of a high end place, but I was in a 1Br for 3 years and $750/mo, no increases. I just moved into the 2br to wait this housing crash out. It’s a triplex and the family in the back has been in a larger 2br 14years and has seen 3 rent hikes. Their monthly rent now? $800/mo.

Without a doubt those negatively affected by poor refi or purchase decisions on rental properties will definately be looking at their tenants for help. But they can’t arbitrarily raise it without fallout. If it’s too high, move. If they foreclose, maybe you can get a good deal on it, if not you move. It’s a pain, but you’re still better off.

If you can, find a landlord with the building paid off, not brand new or top of the line, but low rent. It’s a great place to wait it out.

People forget that owning the property isn’t all it’s cracked up to be. Would you rather be stuck holding the cash or the property? If you rent responsibly you will have the former.

[cr]

I rent in LA from an older real estate agent who has our place paid off. It doesn’t have the ammenities of a high end place, but I was in a 1Br for 3 years and $750/mo, no increases. I just moved into the 2br to wait this housing crash out. It’s a triplex and the family in the back has been in a larger 2br 14years and has seen 3 rent hikes. Their monthly rent now? $800/mo.

Without a doubt those negatively affected by poor refi or purchase decisions on rental properties will definately be looking at their tenants for help. But they can’t arbitrarily raise it without fallout. If it’s too high, move. If they foreclose, maybe you can get a good deal on it, if not you move. It’s a pain, but you’re still better off.

If you can, find a landlord with the building paid off, not brand new or top of the line, but low rent. It’s a great place to wait it out.

People forget that owning the property isn’t all it’s cracked up to be. Would you rather be stuck holding the cash or the property? If you rent responsibly you will have the former.

[Author]

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