[evolusd]

You guys are probably right. They seemed excited to have us as renters and want to move forward, but I think when I ask the tough questions they’ll show me the door and move on to the next sucker.

I’m touring a different property in PQ at 11:30 today, professionally managed. This one could be the one!

Thanks for your thoughts, everyone. Sincerely appreciate the input and this site!

[evolusd]

Update:

My title rep friend printed out all open Trust Deeds against the property. My intuition seemed to be correct about thier purchase in 2006:

1st – 80% purchase money 10Y interest only, 5/1 ARM starts adjusting next year and goes to P&I in 2016.

2nd – 10% home equity credit line

3rd – 10% personal loan (Bene of TD is individual)

Then in 2007, they refinanced the 3rd with another home equity credit line to payoff the individual and cash out $83k.

Bottom line (assuming they didn’t inherit/win a large sum of cash or paydown significantly from cash flow), they owe over $600k on a home worth about $400k.

Now I’m trying to figure out how to approach them with this issue. They may just give me the finger and move on to a less involved tenant.

I’m thinking of adding a clause to the lease requiring notice should a default on any mortgage related to the property occur. If so, they have to return my deposit. I think I can even record some kind of document requiring the lenders to provide me notice of a default.

Interesting time we live in, that’s for sure.

[evolusd]

Update:

My title rep friend printed out all open Trust Deeds against the property. My intuition seemed to be correct about thier purchase in 2006:

1st – 80% purchase money 10Y interest only, 5/1 ARM starts adjusting next year and goes to P&I in 2016.

2nd – 10% home equity credit line

3rd – 10% personal loan (Bene of TD is individual)

Then in 2007, they refinanced the 3rd with another home equity credit line to payoff the individual and cash out $83k.

Bottom line (assuming they didn’t inherit/win a large sum of cash or paydown significantly from cash flow), they owe over $600k on a home worth about $400k.

Now I’m trying to figure out how to approach them with this issue. They may just give me the finger and move on to a less involved tenant.

I’m thinking of adding a clause to the lease requiring notice should a default on any mortgage related to the property occur. If so, they have to return my deposit. I think I can even record some kind of document requiring the lenders to provide me notice of a default.

Interesting time we live in, that’s for sure.

[evolusd]

Update:

My title rep friend printed out all open Trust Deeds against the property. My intuition seemed to be correct about thier purchase in 2006:

1st – 80% purchase money 10Y interest only, 5/1 ARM starts adjusting next year and goes to P&I in 2016.

2nd – 10% home equity credit line

3rd – 10% personal loan (Bene of TD is individual)

Then in 2007, they refinanced the 3rd with another home equity credit line to payoff the individual and cash out $83k.

Bottom line (assuming they didn’t inherit/win a large sum of cash or paydown significantly from cash flow), they owe over $600k on a home worth about $400k.

Now I’m trying to figure out how to approach them with this issue. They may just give me the finger and move on to a less involved tenant.

I’m thinking of adding a clause to the lease requiring notice should a default on any mortgage related to the property occur. If so, they have to return my deposit. I think I can even record some kind of document requiring the lenders to provide me notice of a default.

Interesting time we live in, that’s for sure.

[evolusd]

Update:

My title rep friend printed out all open Trust Deeds against the property. My intuition seemed to be correct about thier purchase in 2006:

1st – 80% purchase money 10Y interest only, 5/1 ARM starts adjusting next year and goes to P&I in 2016.

2nd – 10% home equity credit line

3rd – 10% personal loan (Bene of TD is individual)

Then in 2007, they refinanced the 3rd with another home equity credit line to payoff the individual and cash out $83k.

Bottom line (assuming they didn’t inherit/win a large sum of cash or paydown significantly from cash flow), they owe over $600k on a home worth about $400k.

Now I’m trying to figure out how to approach them with this issue. They may just give me the finger and move on to a less involved tenant.

I’m thinking of adding a clause to the lease requiring notice should a default on any mortgage related to the property occur. If so, they have to return my deposit. I think I can even record some kind of document requiring the lenders to provide me notice of a default.

Interesting time we live in, that’s for sure.

[evolusd]

Update:

My title rep friend printed out all open Trust Deeds against the property. My intuition seemed to be correct about thier purchase in 2006:

1st – 80% purchase money 10Y interest only, 5/1 ARM starts adjusting next year and goes to P&I in 2016.

2nd – 10% home equity credit line

3rd – 10% personal loan (Bene of TD is individual)

Then in 2007, they refinanced the 3rd with another home equity credit line to payoff the individual and cash out $83k.

Bottom line (assuming they didn’t inherit/win a large sum of cash or paydown significantly from cash flow), they owe over $600k on a home worth about $400k.

Now I’m trying to figure out how to approach them with this issue. They may just give me the finger and move on to a less involved tenant.

I’m thinking of adding a clause to the lease requiring notice should a default on any mortgage related to the property occur. If so, they have to return my deposit. I think I can even record some kind of document requiring the lenders to provide me notice of a default.

Interesting time we live in, that’s for sure.

[evolusd]

From my ARCC search, they have at least one mortgage, with a potential 2nd taken out in 2007.
My title rep is providing me with copies of all TDs against the property so I can be sure.

I can’t imagine they make enough income to cover these mortgages as well as a new one for the home in Sky Ranch (those start at $500k+ for the SFRs).

Depending on what I find, I may need to have a candid conversation with them about this to make me feel comfortable. There must be some X factor like a recent inheritance or something.

Thanks, everyone!

[evolusd]

From my ARCC search, they have at least one mortgage, with a potential 2nd taken out in 2007.
My title rep is providing me with copies of all TDs against the property so I can be sure.

I can’t imagine they make enough income to cover these mortgages as well as a new one for the home in Sky Ranch (those start at $500k+ for the SFRs).

Depending on what I find, I may need to have a candid conversation with them about this to make me feel comfortable. There must be some X factor like a recent inheritance or something.

Thanks, everyone!

[evolusd]

From my ARCC search, they have at least one mortgage, with a potential 2nd taken out in 2007.
My title rep is providing me with copies of all TDs against the property so I can be sure.

I can’t imagine they make enough income to cover these mortgages as well as a new one for the home in Sky Ranch (those start at $500k+ for the SFRs).

Depending on what I find, I may need to have a candid conversation with them about this to make me feel comfortable. There must be some X factor like a recent inheritance or something.

Thanks, everyone!

[evolusd]

From my ARCC search, they have at least one mortgage, with a potential 2nd taken out in 2007.
My title rep is providing me with copies of all TDs against the property so I can be sure.

I can’t imagine they make enough income to cover these mortgages as well as a new one for the home in Sky Ranch (those start at $500k+ for the SFRs).

Depending on what I find, I may need to have a candid conversation with them about this to make me feel comfortable. There must be some X factor like a recent inheritance or something.

Thanks, everyone!

[evolusd]

From my ARCC search, they have at least one mortgage, with a potential 2nd taken out in 2007.
My title rep is providing me with copies of all TDs against the property so I can be sure.

I can’t imagine they make enough income to cover these mortgages as well as a new one for the home in Sky Ranch (those start at $500k+ for the SFRs).

Depending on what I find, I may need to have a candid conversation with them about this to make me feel comfortable. There must be some X factor like a recent inheritance or something.

Thanks, everyone!

[evolusd]

BG – really appreciate the advice. A quick search reveals what appears to be a purchase money mortgage in 2006 and a 2nd TD in May 2007, neither of which have been reconveyed. Also odd is a TD/Assignment of Rents from an individual not long after purchase, which was later reconveyed.

If I want to get copies of the docs at the office on PCH, will I have to pay?

[evolusd]

BG – really appreciate the advice. A quick search reveals what appears to be a purchase money mortgage in 2006 and a 2nd TD in May 2007, neither of which have been reconveyed. Also odd is a TD/Assignment of Rents from an individual not long after purchase, which was later reconveyed.

If I want to get copies of the docs at the office on PCH, will I have to pay?

[evolusd]

BG – really appreciate the advice. A quick search reveals what appears to be a purchase money mortgage in 2006 and a 2nd TD in May 2007, neither of which have been reconveyed. Also odd is a TD/Assignment of Rents from an individual not long after purchase, which was later reconveyed.

If I want to get copies of the docs at the office on PCH, will I have to pay?

[evolusd]

BG – really appreciate the advice. A quick search reveals what appears to be a purchase money mortgage in 2006 and a 2nd TD in May 2007, neither of which have been reconveyed. Also odd is a TD/Assignment of Rents from an individual not long after purchase, which was later reconveyed.

If I want to get copies of the docs at the office on PCH, will I have to pay?

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