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October 31, 2007 at 4:40 PM in reply to: 10% population in SD county are millionaires (exclude Primary RE)?! #93986
Eugene
Participant@marion
it escapes me why you thought that you could stop paying rent just because the property was headed into foreclosure. You have a contract with the owner of the property and it is your legal obligation to continue paying rent for this property for as long as the contract is valid. The contract terminates the day he loses possession of the house (the day he forecloses), not a single day sooner.
It is not in anybody’s interest to evict you as long as you keep paying rent. They will need to resolve their financial conflict one way or another, and they’d rather do that with someone living in the house bringing a stream of money than with the house standing empty and gathering dust. If you get evicted, it will be hard for them to find a new tenant, given this muddy situation.
My recommendation:
* Try to get both mother and son in the same room and have them come to an agreement as far as who’s supposed to get paid.
* If you can’t, you should _probably_ be paying to the mother. If there is a valid Assignment of Rents and the owner did in fact go in default on his second mortgage, holder of the second mortgage (mother) gains the right to collect rent from you. What arguments does the owner offer against that?
* Offer to pay at least one month worth of rent if you can’t pay them everything you owe.
* Keep an eye on the proceedings. If things get to the point where the property is finally foreclosed upon, you will probably get evicted anyway, be prepared for that.Participant@marion
it escapes me why you thought that you could stop paying rent just because the property was headed into foreclosure. You have a contract with the owner of the property and it is your legal obligation to continue paying rent for this property for as long as the contract is valid. The contract terminates the day he loses possession of the house (the day he forecloses), not a single day sooner.
It is not in anybody’s interest to evict you as long as you keep paying rent. They will need to resolve their financial conflict one way or another, and they’d rather do that with someone living in the house bringing a stream of money than with the house standing empty and gathering dust. If you get evicted, it will be hard for them to find a new tenant, given this muddy situation.
My recommendation:
* Try to get both mother and son in the same room and have them come to an agreement as far as who’s supposed to get paid.
* If you can’t, you should _probably_ be paying to the mother. If there is a valid Assignment of Rents and the owner did in fact go in default on his second mortgage, holder of the second mortgage (mother) gains the right to collect rent from you. What arguments does the owner offer against that?
* Offer to pay at least one month worth of rent if you can’t pay them everything you owe.
* Keep an eye on the proceedings. If things get to the point where the property is finally foreclosed upon, you will probably get evicted anyway, be prepared for that.Participant@marion
it escapes me why you thought that you could stop paying rent just because the property was headed into foreclosure. You have a contract with the owner of the property and it is your legal obligation to continue paying rent for this property for as long as the contract is valid. The contract terminates the day he loses possession of the house (the day he forecloses), not a single day sooner.
It is not in anybody’s interest to evict you as long as you keep paying rent. They will need to resolve their financial conflict one way or another, and they’d rather do that with someone living in the house bringing a stream of money than with the house standing empty and gathering dust. If you get evicted, it will be hard for them to find a new tenant, given this muddy situation.
My recommendation:
* Try to get both mother and son in the same room and have them come to an agreement as far as who’s supposed to get paid.
* If you can’t, you should _probably_ be paying to the mother. If there is a valid Assignment of Rents and the owner did in fact go in default on his second mortgage, holder of the second mortgage (mother) gains the right to collect rent from you. What arguments does the owner offer against that?
* Offer to pay at least one month worth of rent if you can’t pay them everything you owe.
* Keep an eye on the proceedings. If things get to the point where the property is finally foreclosed upon, you will probably get evicted anyway, be prepared for that.ParticipantYes, of course – assuming that underlying stocks don’t go down against the yuan in the mean time. Much of Chinese economy is export oriented and depreciating dollar hurts Chinese exporters. Ideally you’d want to find an ETF with minimal exposure to the U.S. market (either direct or indirect).
ParticipantYes, of course – assuming that underlying stocks don’t go down against the yuan in the mean time. Much of Chinese economy is export oriented and depreciating dollar hurts Chinese exporters. Ideally you’d want to find an ETF with minimal exposure to the U.S. market (either direct or indirect).
ParticipantYes, of course – assuming that underlying stocks don’t go down against the yuan in the mean time. Much of Chinese economy is export oriented and depreciating dollar hurts Chinese exporters. Ideally you’d want to find an ETF with minimal exposure to the U.S. market (either direct or indirect).
ParticipantSuppose you have a $600k house in RB and it burns down.
* $300k appraised RE value, $300k land.
* To think of it, it costs less than 300k to rebuild (houses like that one go for 150-200k tops in Texas)
* If you owe more than $300k, insurance will pay $300k to your lender. If you owe less than $300k, insurance will pay off your balance and give you whatever’s left.
* You end up with a piece of land in RB with ruins of your old house on it in your possession, and possibly a mortgage on it.
* At first, it seems that equity in your land is equal to equity you had in your house.
* In reality, however, there isn’t much demand for empty lots in RB, 4 out of 5 people would rather buy an existing house than to build a custom house on your land. Furthermore, your land has just lost a lot of value because it is now viewed as risky.
* Your equity suffers a 100-150k hit.
* You have a strong incentive to rebuild. Your land isn’t worth much, you may even have negative equity, but rebuilding will give you a chance to recover and your insurance will even pay your rent while you’re waiting.
* One exception is if you bought your house with zero down in 2004 or later. You had no equity to begin with, and now you’re seriously upside down. The way out is to buy a new house, then foreclose on land. (It may be difficult to get a mortgage for a new house, though.)ParticipantSuppose you have a $600k house in RB and it burns down.
* $300k appraised RE value, $300k land.
* To think of it, it costs less than 300k to rebuild (houses like that one go for 150-200k tops in Texas)
* If you owe more than $300k, insurance will pay $300k to your lender. If you owe less than $300k, insurance will pay off your balance and give you whatever’s left.
* You end up with a piece of land in RB with ruins of your old house on it in your possession, and possibly a mortgage on it.
* At first, it seems that equity in your land is equal to equity you had in your house.
* In reality, however, there isn’t much demand for empty lots in RB, 4 out of 5 people would rather buy an existing house than to build a custom house on your land. Furthermore, your land has just lost a lot of value because it is now viewed as risky.
* Your equity suffers a 100-150k hit.
* You have a strong incentive to rebuild. Your land isn’t worth much, you may even have negative equity, but rebuilding will give you a chance to recover and your insurance will even pay your rent while you’re waiting.
* One exception is if you bought your house with zero down in 2004 or later. You had no equity to begin with, and now you’re seriously upside down. The way out is to buy a new house, then foreclose on land. (It may be difficult to get a mortgage for a new house, though.)ParticipantSuppose you have a $600k house in RB and it burns down.
* $300k appraised RE value, $300k land.
* To think of it, it costs less than 300k to rebuild (houses like that one go for 150-200k tops in Texas)
* If you owe more than $300k, insurance will pay $300k to your lender. If you owe less than $300k, insurance will pay off your balance and give you whatever’s left.
* You end up with a piece of land in RB with ruins of your old house on it in your possession, and possibly a mortgage on it.
* At first, it seems that equity in your land is equal to equity you had in your house.
* In reality, however, there isn’t much demand for empty lots in RB, 4 out of 5 people would rather buy an existing house than to build a custom house on your land. Furthermore, your land has just lost a lot of value because it is now viewed as risky.
* Your equity suffers a 100-150k hit.
* You have a strong incentive to rebuild. Your land isn’t worth much, you may even have negative equity, but rebuilding will give you a chance to recover and your insurance will even pay your rent while you’re waiting.
* One exception is if you bought your house with zero down in 2004 or later. You had no equity to begin with, and now you’re seriously upside down. The way out is to buy a new house, then foreclose on land. (It may be difficult to get a mortgage for a new house, though.)ParticipantDon’t compare these numbers with existing home sales.
If people who lost their homes are in position to buy new homes to replace the ones they lost (and it seems from this thread that they aren’t), this has the effect of absorbing ~1 month of production of new homes in the county.
If not, the fire simply creates temporary additional demand for 700 rental apartments/houses.
ParticipantDon’t compare these numbers with existing home sales.
If people who lost their homes are in position to buy new homes to replace the ones they lost (and it seems from this thread that they aren’t), this has the effect of absorbing ~1 month of production of new homes in the county.
If not, the fire simply creates temporary additional demand for 700 rental apartments/houses.
ParticipantDon’t compare these numbers with existing home sales.
If people who lost their homes are in position to buy new homes to replace the ones they lost (and it seems from this thread that they aren’t), this has the effect of absorbing ~1 month of production of new homes in the county.
If not, the fire simply creates temporary additional demand for 700 rental apartments/houses.
Participant“replacement cost is no more than 150% of the value of their policy coverage”
well 150% is still a good chunk of money. A new $1 million house in 4S ranch might have assessed value of buildings in $500k range.
The bigger question is, does 150% really cover what it costs to rebuild, when the house was originally built by a megabuilder like Lennar as part of subdivision containing 200 identical houses (so that Lennar could cut costs), and now it has to be rebuilt by custom contractors?
Participant“replacement cost is no more than 150% of the value of their policy coverage”
well 150% is still a good chunk of money. A new $1 million house in 4S ranch might have assessed value of buildings in $500k range.
The bigger question is, does 150% really cover what it costs to rebuild, when the house was originally built by a megabuilder like Lennar as part of subdivision containing 200 identical houses (so that Lennar could cut costs), and now it has to be rebuilt by custom contractors?
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