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post #1 of 34 (permalink) Old 03-05-2012, 08:12 PM Thread Starter
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Interesting news

I talked to a realtor who said mid year July first we could be looking for a new vocation. ALL properties are going to be occcoupied and the properties are going to be short sold ! cutting us out of the picture. It does not suprise me as FAS has cut the pricing way down and on some items expect us to go backwards !! Yes backwards. Seems like they (FAS) are milking this cow and when it happens ( I hope it does not) mid year they wont have to worry, as tehy have beat us down enough to cover their asses. They are just an OPM company. They have NO operating costs as they get their money up front. SO we are funding their company. OOPS and OPM company is AN "Other Peoples Money" company.

Anyone else caught wind of this ??:whistling
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post #2 of 34 (permalink) Old 03-05-2012, 08:22 PM
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Up this way we have lots of tenant occupied work from FAS.

Bids are turning around real quick from FAS.Its crazy they always try to cut my plumbers estimates,but just the other day they paid more for me install space heaters than what my plumber wanted to get the heat running.
post #3 of 34 (permalink) Old 03-05-2012, 09:07 PM
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What the "rumor mill" is.....the first option after filing foreclosure is for the realtors to find the occupants and offer the tenant access option as the first choice OR the foreclosure will proceed.

Mixed feelings on this.....
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post #4 of 34 (permalink) Old 03-05-2012, 09:43 PM
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Good way to get the properties trashed further. No stake in the game. Why take care of it!!!
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post #5 of 34 (permalink) Old 03-05-2012, 10:09 PM
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Quote:
Originally Posted by mtmtnman
Good way to get the properties trashed further. No stake in the game. Why take care of it!!!
I agree wholeheartedly. The rents on most of these are very, very low and so are the deposits. They can trash them and walk away and not lose much in the process.

We are already posting signs and securing these properties. Most are already trashed or falling down and there's no indication that the banks are going to clean them up before they rent them out. Time will tell.

Something to consider, though.......... In California, a landlord only has 21 days to produce receipts for cleaning and damages, once a tenant moves, or they have to return the deposits. No doubt other states have landlord/tenant laws that are similar.

I can see these rental situations backfiring on the banks big time. If they're not concerned about cleaning them up now, I highly doubt they will clean them up when the tenants move.

They will be destroyed even further and those tenants will still get their deposits back. And, most likely, after months of not paying rent............ unless there's a clause in the agreement that deposits will be used towards unpaid rent.

Linda



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post #6 of 34 (permalink) Old 03-05-2012, 10:26 PM
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I haven't been involved/informed on this rent situation on REOs.

Correct me if I'm wrong, but I'm hearing both that the banks have to honor existing leases if the landlord is foreclosed on, as well as that the banks are renting REOs? What prevents the rent price in the first scenario from being well below market?
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post #7 of 34 (permalink) Old 03-05-2012, 10:34 PM
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Quote:
Originally Posted by SwiftRes
I haven't been involved/informed on this rent situation on REOs.

Correct me if I'm wrong, but I'm hearing both that the banks have to honor existing leases if the landlord is foreclosed on, as well as that the banks are renting REOs? What prevents the rent price in the first scenario from being well below market?
If they honor the existing lease, they have to honor the existing monthly lease amount. They can't break one part of an agreement and honor the other.

They do have the option, however, to offer a new agreement. The tenant has the option to say no, though, and hold the bank to the existing contract.

Is that what you were asking?

Linda



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post #8 of 34 (permalink) Old 03-05-2012, 10:36 PM
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Yes, it does somewhat, but my question is what prevents the homeowner/landlord from leasing a $200k home to a friend for $500/mo for 2 years while they are in the foreclosure process?
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post #9 of 34 (permalink) Old 03-05-2012, 10:43 PM
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Quote:
Originally Posted by SwiftRes
Yes, it does somewhat, but my question is what prevents the homeowner/landlord from leasing a $200k home to a friend for $500/mo for 2 years while they are in the foreclosure process?
I'm sure it's been done and I'm sure banks have been forced to honor the agreements. Until the bank actually takes possession of the property, by eviction or a cash for keys move out, the owner/landlord can draft any kind of lease agreement he likes for whatever terms he wants, with regard to length of time and amount.

To me, it doesn't seem like it should be legal but it is. Sure does speak to the morality of the owner/landlord, tho.

And along those lines, as long as it's in the contract that the tenant/friend can sublet the property, there's nothing keeping the owner/landlord from moving back in and paying the lower fees to the bank.

Linda



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post #10 of 34 (permalink) Old 03-05-2012, 10:46 PM
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Agree with the morality piece, but I've seen about everything. Investors purchasing short sales has been a bad one sometimes. When I was an RE agent there were some BPOs you would avoid as you knew the investor would meet you there and hound and pressure you into putting in the BPO well below market value so they could scoop it up cheap.

Quote:
Originally Posted by a1propertyclean
I'm sure it's been done and I'm sure banks have been forced to honor the agreements. Until the bank actually takes possession of the property, by eviction or a cash for keys move out, the owner/landlord can draft any kind of lease agreement he likes for whatever terms he wants, with regard to length of time and amount.

To me, it doesn't seem like it should be legal but it is. Sure does speak to the morality of the owner/landlord, tho.

And along those lines, as long as it's in the contract that the tenant/friend can sublet the property, there's nothing keeping the owner/landlord from moving back in and paying the lower fees to the bank.

Linda
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