[Effective Demand]

I’ve been in this situation in early 2009.

Your agreement (lease) with the owner has no relation with the owners agreement (mortgage) with the bank. So continue to pay rent, there are much stronger controls to protect renters now and the lease will remain in effect even after foreclosure with the new laws on the books. If the property goes into disrepair because of the LL being in a bind then you are able to break the lease but being behind on payments or in foreclosure isnt enough to break the covenant of quiet enjoyment.

I thought if my LL issues persisted back then I would give notice when my lease was up but not pay the last month rent, that way the LL would have to come after me for the difference between the security deposit and any damages + rent they listed. This way I was assured of getting my security deposit back. I was planning on paying for any legitimate damages listed and not making a court fight over it.

[Effective Demand]

I’ve been in this situation in early 2009.

Your agreement (lease) with the owner has no relation with the owners agreement (mortgage) with the bank. So continue to pay rent, there are much stronger controls to protect renters now and the lease will remain in effect even after foreclosure with the new laws on the books. If the property goes into disrepair because of the LL being in a bind then you are able to break the lease but being behind on payments or in foreclosure isnt enough to break the covenant of quiet enjoyment.

I thought if my LL issues persisted back then I would give notice when my lease was up but not pay the last month rent, that way the LL would have to come after me for the difference between the security deposit and any damages + rent they listed. This way I was assured of getting my security deposit back. I was planning on paying for any legitimate damages listed and not making a court fight over it.

[Effective Demand]

I’ve been in this situation in early 2009.

Your agreement (lease) with the owner has no relation with the owners agreement (mortgage) with the bank. So continue to pay rent, there are much stronger controls to protect renters now and the lease will remain in effect even after foreclosure with the new laws on the books. If the property goes into disrepair because of the LL being in a bind then you are able to break the lease but being behind on payments or in foreclosure isnt enough to break the covenant of quiet enjoyment.

I thought if my LL issues persisted back then I would give notice when my lease was up but not pay the last month rent, that way the LL would have to come after me for the difference between the security deposit and any damages + rent they listed. This way I was assured of getting my security deposit back. I was planning on paying for any legitimate damages listed and not making a court fight over it.

[Effective Demand]

I’ve been in this situation in early 2009.

Your agreement (lease) with the owner has no relation with the owners agreement (mortgage) with the bank. So continue to pay rent, there are much stronger controls to protect renters now and the lease will remain in effect even after foreclosure with the new laws on the books. If the property goes into disrepair because of the LL being in a bind then you are able to break the lease but being behind on payments or in foreclosure isnt enough to break the covenant of quiet enjoyment.

I thought if my LL issues persisted back then I would give notice when my lease was up but not pay the last month rent, that way the LL would have to come after me for the difference between the security deposit and any damages + rent they listed. This way I was assured of getting my security deposit back. I was planning on paying for any legitimate damages listed and not making a court fight over it.

[Effective Demand]

I’ve been in this situation in early 2009.

Your agreement (lease) with the owner has no relation with the owners agreement (mortgage) with the bank. So continue to pay rent, there are much stronger controls to protect renters now and the lease will remain in effect even after foreclosure with the new laws on the books. If the property goes into disrepair because of the LL being in a bind then you are able to break the lease but being behind on payments or in foreclosure isnt enough to break the covenant of quiet enjoyment.

I thought if my LL issues persisted back then I would give notice when my lease was up but not pay the last month rent, that way the LL would have to come after me for the difference between the security deposit and any damages + rent they listed. This way I was assured of getting my security deposit back. I was planning on paying for any legitimate damages listed and not making a court fight over it.

[Effective Demand]

[quote=fredo4]Do banks look at savings or other assets when considering loan modifications or is it mostly (or all)dependent on income?[/quote]

They’ll want to know assets as well.

I’ve rarely seen a good loan mod, and usually they are given out in the more depressed areas. Check out the loansafe forums for particulars relative to who owns and services the loan as there is a huge variance depending on those factors.

There is also a third option, let it go back to the bank and saving the mortgage payments.

And within short selling much is dependent on the servicer. Also within short selling there is the option of short selling but still current and short selling but not paying. The rolling 30/60/90 day lates reporting on the credit report is what hurts a lot if they were trying to save their credit but some servicers/investor combos might not allow non-defaulters to sell short.

Based on the very limited info given, I would say short sale. In fact in most cases with distress and highly underwater homes I would say short sale. If you can show cooperation with the lender and distress then FHA loans become a viable option much sooner for the borrower to rebuy (sometimes immediately).

[Effective Demand]

[quote=fredo4]Do banks look at savings or other assets when considering loan modifications or is it mostly (or all)dependent on income?[/quote]

They’ll want to know assets as well.

I’ve rarely seen a good loan mod, and usually they are given out in the more depressed areas. Check out the loansafe forums for particulars relative to who owns and services the loan as there is a huge variance depending on those factors.

There is also a third option, let it go back to the bank and saving the mortgage payments.

And within short selling much is dependent on the servicer. Also within short selling there is the option of short selling but still current and short selling but not paying. The rolling 30/60/90 day lates reporting on the credit report is what hurts a lot if they were trying to save their credit but some servicers/investor combos might not allow non-defaulters to sell short.

Based on the very limited info given, I would say short sale. In fact in most cases with distress and highly underwater homes I would say short sale. If you can show cooperation with the lender and distress then FHA loans become a viable option much sooner for the borrower to rebuy (sometimes immediately).

[Effective Demand]

[quote=fredo4]Do banks look at savings or other assets when considering loan modifications or is it mostly (or all)dependent on income?[/quote]

They’ll want to know assets as well.

I’ve rarely seen a good loan mod, and usually they are given out in the more depressed areas. Check out the loansafe forums for particulars relative to who owns and services the loan as there is a huge variance depending on those factors.

There is also a third option, let it go back to the bank and saving the mortgage payments.

And within short selling much is dependent on the servicer. Also within short selling there is the option of short selling but still current and short selling but not paying. The rolling 30/60/90 day lates reporting on the credit report is what hurts a lot if they were trying to save their credit but some servicers/investor combos might not allow non-defaulters to sell short.

Based on the very limited info given, I would say short sale. In fact in most cases with distress and highly underwater homes I would say short sale. If you can show cooperation with the lender and distress then FHA loans become a viable option much sooner for the borrower to rebuy (sometimes immediately).

[Effective Demand]

[quote=fredo4]Do banks look at savings or other assets when considering loan modifications or is it mostly (or all)dependent on income?[/quote]

They’ll want to know assets as well.

I’ve rarely seen a good loan mod, and usually they are given out in the more depressed areas. Check out the loansafe forums for particulars relative to who owns and services the loan as there is a huge variance depending on those factors.

There is also a third option, let it go back to the bank and saving the mortgage payments.

And within short selling much is dependent on the servicer. Also within short selling there is the option of short selling but still current and short selling but not paying. The rolling 30/60/90 day lates reporting on the credit report is what hurts a lot if they were trying to save their credit but some servicers/investor combos might not allow non-defaulters to sell short.

Based on the very limited info given, I would say short sale. In fact in most cases with distress and highly underwater homes I would say short sale. If you can show cooperation with the lender and distress then FHA loans become a viable option much sooner for the borrower to rebuy (sometimes immediately).

[Effective Demand]

[quote=fredo4]Do banks look at savings or other assets when considering loan modifications or is it mostly (or all)dependent on income?[/quote]

They’ll want to know assets as well.

I’ve rarely seen a good loan mod, and usually they are given out in the more depressed areas. Check out the loansafe forums for particulars relative to who owns and services the loan as there is a huge variance depending on those factors.

There is also a third option, let it go back to the bank and saving the mortgage payments.

And within short selling much is dependent on the servicer. Also within short selling there is the option of short selling but still current and short selling but not paying. The rolling 30/60/90 day lates reporting on the credit report is what hurts a lot if they were trying to save their credit but some servicers/investor combos might not allow non-defaulters to sell short.

Based on the very limited info given, I would say short sale. In fact in most cases with distress and highly underwater homes I would say short sale. If you can show cooperation with the lender and distress then FHA loans become a viable option much sooner for the borrower to rebuy (sometimes immediately).

[Effective Demand]

[quote=SD Realtor]The manager at ralphs will simply pass on his expenses. It is pretty easy to follow the commodity trail. Start at the cost of water and fuel. People who grow everything from fruits/vegetables to feed for cattle/pigs etc incur higher prices. Increasing fuel prices also impact them and the transporters who are needed for the supply chain. Cotton and other things that are grown for textiles and clothing are affected. Pretty much everything at the base is affected and as you move up the manufacturing chain additional costs are added.

The manager at Ralphs has nothing to do with it. he is simply the endpoint in the supply chain.

[/quote]

Commodity prices are just one point in the chain. Labor costs are many times the largest expense and they are relatively flat. Commercial real estate prices and rents are flat to down. There can be many scenarios in which a commodity prices have risen but prices are flat to down. It all depends on how big of a percentage commodity prices are of the end product pricing and what the other inputs are doing.

I personally think CPI has generally got things correct, disinflationary conditions. But recently (since late summer) I have noticed pricing power by lower end retailers (in fact most of the softness I have personally witnessed is in the higher end brands).

[Effective Demand]

[quote=SD Realtor]The manager at ralphs will simply pass on his expenses. It is pretty easy to follow the commodity trail. Start at the cost of water and fuel. People who grow everything from fruits/vegetables to feed for cattle/pigs etc incur higher prices. Increasing fuel prices also impact them and the transporters who are needed for the supply chain. Cotton and other things that are grown for textiles and clothing are affected. Pretty much everything at the base is affected and as you move up the manufacturing chain additional costs are added.

The manager at Ralphs has nothing to do with it. he is simply the endpoint in the supply chain.

[/quote]

Commodity prices are just one point in the chain. Labor costs are many times the largest expense and they are relatively flat. Commercial real estate prices and rents are flat to down. There can be many scenarios in which a commodity prices have risen but prices are flat to down. It all depends on how big of a percentage commodity prices are of the end product pricing and what the other inputs are doing.

I personally think CPI has generally got things correct, disinflationary conditions. But recently (since late summer) I have noticed pricing power by lower end retailers (in fact most of the softness I have personally witnessed is in the higher end brands).

[Effective Demand]

[quote=SD Realtor]The manager at ralphs will simply pass on his expenses. It is pretty easy to follow the commodity trail. Start at the cost of water and fuel. People who grow everything from fruits/vegetables to feed for cattle/pigs etc incur higher prices. Increasing fuel prices also impact them and the transporters who are needed for the supply chain. Cotton and other things that are grown for textiles and clothing are affected. Pretty much everything at the base is affected and as you move up the manufacturing chain additional costs are added.

The manager at Ralphs has nothing to do with it. he is simply the endpoint in the supply chain.

[/quote]

Commodity prices are just one point in the chain. Labor costs are many times the largest expense and they are relatively flat. Commercial real estate prices and rents are flat to down. There can be many scenarios in which a commodity prices have risen but prices are flat to down. It all depends on how big of a percentage commodity prices are of the end product pricing and what the other inputs are doing.

I personally think CPI has generally got things correct, disinflationary conditions. But recently (since late summer) I have noticed pricing power by lower end retailers (in fact most of the softness I have personally witnessed is in the higher end brands).

[Effective Demand]

[quote=SD Realtor]The manager at ralphs will simply pass on his expenses. It is pretty easy to follow the commodity trail. Start at the cost of water and fuel. People who grow everything from fruits/vegetables to feed for cattle/pigs etc incur higher prices. Increasing fuel prices also impact them and the transporters who are needed for the supply chain. Cotton and other things that are grown for textiles and clothing are affected. Pretty much everything at the base is affected and as you move up the manufacturing chain additional costs are added.

The manager at Ralphs has nothing to do with it. he is simply the endpoint in the supply chain.

[/quote]

Commodity prices are just one point in the chain. Labor costs are many times the largest expense and they are relatively flat. Commercial real estate prices and rents are flat to down. There can be many scenarios in which a commodity prices have risen but prices are flat to down. It all depends on how big of a percentage commodity prices are of the end product pricing and what the other inputs are doing.

I personally think CPI has generally got things correct, disinflationary conditions. But recently (since late summer) I have noticed pricing power by lower end retailers (in fact most of the softness I have personally witnessed is in the higher end brands).

[Effective Demand]

[quote=SD Realtor]The manager at ralphs will simply pass on his expenses. It is pretty easy to follow the commodity trail. Start at the cost of water and fuel. People who grow everything from fruits/vegetables to feed for cattle/pigs etc incur higher prices. Increasing fuel prices also impact them and the transporters who are needed for the supply chain. Cotton and other things that are grown for textiles and clothing are affected. Pretty much everything at the base is affected and as you move up the manufacturing chain additional costs are added.

The manager at Ralphs has nothing to do with it. he is simply the endpoint in the supply chain.

[/quote]

Commodity prices are just one point in the chain. Labor costs are many times the largest expense and they are relatively flat. Commercial real estate prices and rents are flat to down. There can be many scenarios in which a commodity prices have risen but prices are flat to down. It all depends on how big of a percentage commodity prices are of the end product pricing and what the other inputs are doing.

I personally think CPI has generally got things correct, disinflationary conditions. But recently (since late summer) I have noticed pricing power by lower end retailers (in fact most of the softness I have personally witnessed is in the higher end brands).

[Author]

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