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October 14, 2009 at 11:23 PM in reply to: Help: non-responsive landlord potentially late on mortgage payments #469752October 14, 2009 at 11:23 PM in reply to: Help: non-responsive landlord potentially late on mortgage payments #469964
urbanrealtor
Participant[quote=feraina]Okay, so I looked up the laws a little more. The CA law has been superseded by a federal law Obama signed into law on May, 2009 (is that the best concrete thing he’s done so far?), which states that tenant of a foreclosed property has the right to stay until the end of the lease, or if it is month-to-month, then the renter has to be given at least 90-day notice by the new owner to move out. The only exception is if the new owner plans to move in and live there, then the new owner can terminate the lease with 90-day notice even if the original was for longer.
[/quote]
You need to check that info.
I am pretty sure it is not accurate for current CA practices.
[quote=feraina]
Since it’s a foreclosure property, majority of properties go to the lender, so they wouldn’t be living in it; I guess it is only the case if a third-party buys it at the courthouse, is that right?I also found out that CA state laws state that the lease survives a sale (I suppose whether conventional or short), no exceptions as far as I can see.
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Uhhhh. No.The lease is an encumbrance on real property (like a second or HOA lien) and is wiped out by foreclosure and repo (unlike a normal sale).
It would survive a short sale.
[quote=feraina]
So I talked to my landlord, and here’s his situation. Not only is he upside down on this unit but he’s undergoing divorce, and he is at break-even for his “primary residence” (which his separated wife refuses to move out of), as his equity was entirely canceled out by depreciation. The guy is just too nice, they separated 2.5 years ago, and he’s still paying all the mortgages, taxes, bills, and repairs at the house she wouldn’t move out of, while he rents a place with his new gf. The unit I’m renting he did 80/20, but it was neg-am, and now he owes $50K more than his purchasing price and is probably $150K+ over market value (60%). His lenders will apparently consider re-fi him on this, wipe out the 2nd; they seem more open to re-fi’s when there’s a divorce involved. So he’ll probably try to start the re-fi process soon, and that probably means he’ll have to miss a few payments first… He also just extended my lease by a month while he talks more with his lender.He offered me to go on month-to-month, but I am still leaning toward signing a longer-term lease with him, even though he’s undergoing all his financial turmoil, given that my lease is protected whether it’s a sale or foreclosure.
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Its not.
You get 60 days rent free from the date of the trustee sale.
[quote=feraina]
If the new owners refuse to repair the unit, I can always repair and deduct from rent myself under CA tenancy laws…
[/quote]That is true.
[quote=feraina]And I think he will continue to be a good landlord, as he has been so far, as long as he is still the owner. Also, both short-sale and foreclosure will take a very long time to happen, especially given all the government interventions. And I think he’s far too under-water to do a regular sale. And in the worst case, if for some miraculous reason it happens quickly for this place, I would still have at least 90 days to find a new place.
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60
[quote=feraina]
Does anyone see any good reason that I shouldn’t try to persuade him for a long-term lease (at least 9 months)?
[/quote]
Yeah.
The fact that you are dealing with info that is inaccurate.
Here is a good link to have:
http://www.dca.ca.gov/publications/landlordbook/index.shtml
[quote=feraina]
ETA: and oh, yeah, with SDR’s help I found out that he’s not officially delinquent yet.[/quote]Wrong.
Delinquency is private record (so you really don’t know). Default is public record. He could have stopped paying 5 months ago and you would still not know if the bank is filing the NOD slowly.
[quote=feraina] It’s actually kinda amazing he’s kept up the payments so far, given the two mortgages, an expensive wouldn’t-go-away-ex-wife to support, divorce lawyer bills, and reduced income (he’s a contractor).[/quote]You should really stop thinking about his welfare and be ready to stop paying. Honestly, the worst that will happen is that you will lose your place and get 60 days free rent.
Good luck to you.
October 14, 2009 at 11:03 PM in reply to: Purchase contract for short sale legally enforceable? #469119Participant[quote=SD Realtor]Yes this is a tough one. I will be interested to see how it turns out. One thing that may help you out is the approval letters. If you have a copy of the approval letter from the short sale lender(s) that has the signature of the seller then that will help. If you read the short sale addendum then you will see there is text in that addendum that protects the seller in such a way that the seller does in fact not need to move forward even with approval. This may be the case where a lender demands a note to cover all or part of the deficiency.
I would agree with UR that you may want to try to sit down and work things out. What has probably transpired is somehow the seller has realized that they can continue to live in the house for free until it gets foreclosed on. They have decided that having a foreclosure is not any worse then a short sale with regards to credit history. Right or wrong that is where they are at. So… you can use vinegar or honey to try to get the home. It is a tough call.[/quote]
Okay.
The problem is that their motivations and inner turmoil is largely irrelevant.
The suggestion was not to sit down with the other side (though that is not a bad idea) but to let them get some free legal advice from a qualified (and “qualified” is the key) attorney who could clarify that the seller has less to lose by short selling.Any seller can live in their place without paying for years these days.
If they are doing a short sale, they probably are willing to move out.
Still, if you are devoting this much time to this retarded endeavor, you might want to consider devoting money for a couple of hours of attorney time.
I know my advice is less rosy than SD_R’s and more lengthy than sdr’s (whose opinions actually have value), but it really is worth your time to try and get this dude to see the light. He will most likely do that with the aid of a professional who owes him loyalty.
My opinion.
Good luck dude.
October 14, 2009 at 11:03 PM in reply to: Purchase contract for short sale legally enforceable? #469302Participant[quote=SD Realtor]Yes this is a tough one. I will be interested to see how it turns out. One thing that may help you out is the approval letters. If you have a copy of the approval letter from the short sale lender(s) that has the signature of the seller then that will help. If you read the short sale addendum then you will see there is text in that addendum that protects the seller in such a way that the seller does in fact not need to move forward even with approval. This may be the case where a lender demands a note to cover all or part of the deficiency.
I would agree with UR that you may want to try to sit down and work things out. What has probably transpired is somehow the seller has realized that they can continue to live in the house for free until it gets foreclosed on. They have decided that having a foreclosure is not any worse then a short sale with regards to credit history. Right or wrong that is where they are at. So… you can use vinegar or honey to try to get the home. It is a tough call.[/quote]
Okay.
The problem is that their motivations and inner turmoil is largely irrelevant.
The suggestion was not to sit down with the other side (though that is not a bad idea) but to let them get some free legal advice from a qualified (and “qualified” is the key) attorney who could clarify that the seller has less to lose by short selling.Any seller can live in their place without paying for years these days.
If they are doing a short sale, they probably are willing to move out.
Still, if you are devoting this much time to this retarded endeavor, you might want to consider devoting money for a couple of hours of attorney time.
I know my advice is less rosy than SD_R’s and more lengthy than sdr’s (whose opinions actually have value), but it really is worth your time to try and get this dude to see the light. He will most likely do that with the aid of a professional who owes him loyalty.
My opinion.
Good luck dude.
October 14, 2009 at 11:03 PM in reply to: Purchase contract for short sale legally enforceable? #469659Participant[quote=SD Realtor]Yes this is a tough one. I will be interested to see how it turns out. One thing that may help you out is the approval letters. If you have a copy of the approval letter from the short sale lender(s) that has the signature of the seller then that will help. If you read the short sale addendum then you will see there is text in that addendum that protects the seller in such a way that the seller does in fact not need to move forward even with approval. This may be the case where a lender demands a note to cover all or part of the deficiency.
I would agree with UR that you may want to try to sit down and work things out. What has probably transpired is somehow the seller has realized that they can continue to live in the house for free until it gets foreclosed on. They have decided that having a foreclosure is not any worse then a short sale with regards to credit history. Right or wrong that is where they are at. So… you can use vinegar or honey to try to get the home. It is a tough call.[/quote]
Okay.
The problem is that their motivations and inner turmoil is largely irrelevant.
The suggestion was not to sit down with the other side (though that is not a bad idea) but to let them get some free legal advice from a qualified (and “qualified” is the key) attorney who could clarify that the seller has less to lose by short selling.Any seller can live in their place without paying for years these days.
If they are doing a short sale, they probably are willing to move out.
Still, if you are devoting this much time to this retarded endeavor, you might want to consider devoting money for a couple of hours of attorney time.
I know my advice is less rosy than SD_R’s and more lengthy than sdr’s (whose opinions actually have value), but it really is worth your time to try and get this dude to see the light. He will most likely do that with the aid of a professional who owes him loyalty.
My opinion.
Good luck dude.
October 14, 2009 at 11:03 PM in reply to: Purchase contract for short sale legally enforceable? #469731Participant[quote=SD Realtor]Yes this is a tough one. I will be interested to see how it turns out. One thing that may help you out is the approval letters. If you have a copy of the approval letter from the short sale lender(s) that has the signature of the seller then that will help. If you read the short sale addendum then you will see there is text in that addendum that protects the seller in such a way that the seller does in fact not need to move forward even with approval. This may be the case where a lender demands a note to cover all or part of the deficiency.
I would agree with UR that you may want to try to sit down and work things out. What has probably transpired is somehow the seller has realized that they can continue to live in the house for free until it gets foreclosed on. They have decided that having a foreclosure is not any worse then a short sale with regards to credit history. Right or wrong that is where they are at. So… you can use vinegar or honey to try to get the home. It is a tough call.[/quote]
Okay.
The problem is that their motivations and inner turmoil is largely irrelevant.
The suggestion was not to sit down with the other side (though that is not a bad idea) but to let them get some free legal advice from a qualified (and “qualified” is the key) attorney who could clarify that the seller has less to lose by short selling.Any seller can live in their place without paying for years these days.
If they are doing a short sale, they probably are willing to move out.
Still, if you are devoting this much time to this retarded endeavor, you might want to consider devoting money for a couple of hours of attorney time.
I know my advice is less rosy than SD_R’s and more lengthy than sdr’s (whose opinions actually have value), but it really is worth your time to try and get this dude to see the light. He will most likely do that with the aid of a professional who owes him loyalty.
My opinion.
Good luck dude.
October 14, 2009 at 11:03 PM in reply to: Purchase contract for short sale legally enforceable? #469944Participant[quote=SD Realtor]Yes this is a tough one. I will be interested to see how it turns out. One thing that may help you out is the approval letters. If you have a copy of the approval letter from the short sale lender(s) that has the signature of the seller then that will help. If you read the short sale addendum then you will see there is text in that addendum that protects the seller in such a way that the seller does in fact not need to move forward even with approval. This may be the case where a lender demands a note to cover all or part of the deficiency.
I would agree with UR that you may want to try to sit down and work things out. What has probably transpired is somehow the seller has realized that they can continue to live in the house for free until it gets foreclosed on. They have decided that having a foreclosure is not any worse then a short sale with regards to credit history. Right or wrong that is where they are at. So… you can use vinegar or honey to try to get the home. It is a tough call.[/quote]
Okay.
The problem is that their motivations and inner turmoil is largely irrelevant.
The suggestion was not to sit down with the other side (though that is not a bad idea) but to let them get some free legal advice from a qualified (and “qualified” is the key) attorney who could clarify that the seller has less to lose by short selling.Any seller can live in their place without paying for years these days.
If they are doing a short sale, they probably are willing to move out.
Still, if you are devoting this much time to this retarded endeavor, you might want to consider devoting money for a couple of hours of attorney time.
I know my advice is less rosy than SD_R’s and more lengthy than sdr’s (whose opinions actually have value), but it really is worth your time to try and get this dude to see the light. He will most likely do that with the aid of a professional who owes him loyalty.
My opinion.
Good luck dude.
October 14, 2009 at 9:24 PM in reply to: Purchase contract for short sale legally enforceable? #469078ParticipantIf there is a Short Sale Addendum or an Addendum to Purchase Agreement, you are SOL.
Both of those forms build in protections for sellers in a short sale if a lien holder does not approve a sale in a form that works for the seller (like saying that the seller is still responsible for the deficiency).
It is possible that both the listing and buyer’s agent were negligent and did not provide those. In that case you might have some options.
If the lawyer you are using is anything other than a residential real estate specialist (like that is his entire practice) then you are SOL with atty fees.
If the seller’s bank declines this or puts non-viable conditions upon the sale, then really you don’t have a deal.
Even if you were to succeed in a specific performance lawsuit, the practical reality is that getting the crazy logistics of a multi-loan short sale working (without seller cooperation) mean your victory would be both Pyrrhic and pointless.
A better bet would be to get that atty you paid for to have a sit down with the seller and explain to him how hard it would be for Chase to come after him in a single action state and how his loan could be considered non-recourse (if that is a position that can be defended).
Finally I must ask:
Why would you want to pursue this?
There are lots of properties out there.
October 14, 2009 at 9:24 PM in reply to: Purchase contract for short sale legally enforceable? #469263ParticipantIf there is a Short Sale Addendum or an Addendum to Purchase Agreement, you are SOL.
Both of those forms build in protections for sellers in a short sale if a lien holder does not approve a sale in a form that works for the seller (like saying that the seller is still responsible for the deficiency).
It is possible that both the listing and buyer’s agent were negligent and did not provide those. In that case you might have some options.
If the lawyer you are using is anything other than a residential real estate specialist (like that is his entire practice) then you are SOL with atty fees.
If the seller’s bank declines this or puts non-viable conditions upon the sale, then really you don’t have a deal.
Even if you were to succeed in a specific performance lawsuit, the practical reality is that getting the crazy logistics of a multi-loan short sale working (without seller cooperation) mean your victory would be both Pyrrhic and pointless.
A better bet would be to get that atty you paid for to have a sit down with the seller and explain to him how hard it would be for Chase to come after him in a single action state and how his loan could be considered non-recourse (if that is a position that can be defended).
Finally I must ask:
Why would you want to pursue this?
There are lots of properties out there.
October 14, 2009 at 9:24 PM in reply to: Purchase contract for short sale legally enforceable? #469619ParticipantIf there is a Short Sale Addendum or an Addendum to Purchase Agreement, you are SOL.
Both of those forms build in protections for sellers in a short sale if a lien holder does not approve a sale in a form that works for the seller (like saying that the seller is still responsible for the deficiency).
It is possible that both the listing and buyer’s agent were negligent and did not provide those. In that case you might have some options.
If the lawyer you are using is anything other than a residential real estate specialist (like that is his entire practice) then you are SOL with atty fees.
If the seller’s bank declines this or puts non-viable conditions upon the sale, then really you don’t have a deal.
Even if you were to succeed in a specific performance lawsuit, the practical reality is that getting the crazy logistics of a multi-loan short sale working (without seller cooperation) mean your victory would be both Pyrrhic and pointless.
A better bet would be to get that atty you paid for to have a sit down with the seller and explain to him how hard it would be for Chase to come after him in a single action state and how his loan could be considered non-recourse (if that is a position that can be defended).
Finally I must ask:
Why would you want to pursue this?
There are lots of properties out there.
October 14, 2009 at 9:24 PM in reply to: Purchase contract for short sale legally enforceable? #469692ParticipantIf there is a Short Sale Addendum or an Addendum to Purchase Agreement, you are SOL.
Both of those forms build in protections for sellers in a short sale if a lien holder does not approve a sale in a form that works for the seller (like saying that the seller is still responsible for the deficiency).
It is possible that both the listing and buyer’s agent were negligent and did not provide those. In that case you might have some options.
If the lawyer you are using is anything other than a residential real estate specialist (like that is his entire practice) then you are SOL with atty fees.
If the seller’s bank declines this or puts non-viable conditions upon the sale, then really you don’t have a deal.
Even if you were to succeed in a specific performance lawsuit, the practical reality is that getting the crazy logistics of a multi-loan short sale working (without seller cooperation) mean your victory would be both Pyrrhic and pointless.
A better bet would be to get that atty you paid for to have a sit down with the seller and explain to him how hard it would be for Chase to come after him in a single action state and how his loan could be considered non-recourse (if that is a position that can be defended).
Finally I must ask:
Why would you want to pursue this?
There are lots of properties out there.
October 14, 2009 at 9:24 PM in reply to: Purchase contract for short sale legally enforceable? #469905ParticipantIf there is a Short Sale Addendum or an Addendum to Purchase Agreement, you are SOL.
Both of those forms build in protections for sellers in a short sale if a lien holder does not approve a sale in a form that works for the seller (like saying that the seller is still responsible for the deficiency).
It is possible that both the listing and buyer’s agent were negligent and did not provide those. In that case you might have some options.
If the lawyer you are using is anything other than a residential real estate specialist (like that is his entire practice) then you are SOL with atty fees.
If the seller’s bank declines this or puts non-viable conditions upon the sale, then really you don’t have a deal.
Even if you were to succeed in a specific performance lawsuit, the practical reality is that getting the crazy logistics of a multi-loan short sale working (without seller cooperation) mean your victory would be both Pyrrhic and pointless.
A better bet would be to get that atty you paid for to have a sit down with the seller and explain to him how hard it would be for Chase to come after him in a single action state and how his loan could be considered non-recourse (if that is a position that can be defended).
Finally I must ask:
Why would you want to pursue this?
There are lots of properties out there.
Participant[quote=briansd1]
All you have to do is talk to the real estate contractors who live in San Diego. They are Republicans and all hope for more government action to save them from failure. …
…
When it comes to money, ideology goes out the window real quick.[/quote]I am a liberal but still would like to have free money.
Participant[quote=briansd1]
All you have to do is talk to the real estate contractors who live in San Diego. They are Republicans and all hope for more government action to save them from failure. …
…
When it comes to money, ideology goes out the window real quick.[/quote]I am a liberal but still would like to have free money.
Participant[quote=briansd1]
All you have to do is talk to the real estate contractors who live in San Diego. They are Republicans and all hope for more government action to save them from failure. …
…
When it comes to money, ideology goes out the window real quick.[/quote]I am a liberal but still would like to have free money.
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