All Forum Posts by: Patsy Waldron

So... I am scrolling through Quora and come across an article about FIRE in today's New York Times. (For those who don't know, FIRE stands for "Financial Independence, Retire Early"- the attraction of real estate for many on BP!) Of course I decide to read it, because FI, right? And part of the way through, it mentions a Mr. Jensen in Denver, CO. Igo, Hmmm... I wonder if....? And sure enough, a couple of photos down, I see mention of his wife, Mindy! Well, I can't tag or hyperlink in the app, so here is, very inelegantly, the link to the article: https://nyti.ms/2N8ClOn

Thanks, @Jon Holdman- I've tracked down the registered agent and will reach out to her to see whether the LLC would consider selling. If it does, and the price is right, I'll get in touch with a RE attorney to get the ball rolling. It's probably a long shot, but hey-- you miss 100% of the shots you don't take, right? ;-)

Thank you for this explanation, @Jon Holdman. Very helpful. I was wondering why the HOA sold it to the LLC for so little-- but it makes sense that the HOA didn't want to be making payments on an almost $200K mortgage!

So if we buy it from the LLC, would the bank then stop the foreclosure process? How do we make sure that what we pay goes to satisfy the original loan, and the LLC doesn't just pocket it? Obviously we don't want to be embroiled in an expensive lawsuit against a big bank!

@Uchenna A. @Ron S. @Jon Holdman

Thank you for your input, everybody! This foreclosure is kind of weird. From what I gathered from my reading of the court papers, the current owner is not in arrears on their mortgage. The house is being foreclosed on by a previous owner's mortgagee! That previous owner stopped making her mortgage payments in July 2014, lost the house to the neighborhood association (had obviously also stopped paying association dues), which then sold it (for peanuts!) to the current owner, an LLC. Then in 2016 the bank that held the original owner's mortgage sued. It is asking for remaining principal ($195,400) + interest, escrow, title search, title exam, filing fee, and attorney fees and costs. As Ron mentioned above, the payoff balance is likely far higher by now, with 4 years of non-payment! Not to mention attorneys' fees and the other stuff.

The case finally went to a judge in April. We wouldn't mind paying the remaining principal and then some... but it sounds like the waters are very muddy as far as who can legally sell the house at this point! If nothing else, this is an example  of why title insurance is important, I suppose!

If/when the house goes to auction, I imagine that someone with cash is who will get it, rather than a buyer like us, who needs a mortgage...???  :-(

Originally posted by @Wayne Brooks:

No, you will get no special chance to buy it. At some point you will either be given the 30 days notice or there is s chance an investor buys it at the auction and wants to keep you as a tenant.....no way to know.

 Dang... Now what I wanted to hear, but good to know. Thank you!

Hello all!

I have a question for the pros who deal with foreclosures (the process itself, selling them, etc). I have found a house that is in foreclosure that is being advertised for rent. This is in a city with a very hot market for both sales and rentals-- everything gets multiple bids/ rental applications within a day! So my family is moving to this city and looking for a place to rent for a year or more while we get to know the area and decide where we want to buy (and pray very hard that the market will cool down!). This house for rent popped up that was several hundred dollars below market rent. A 4/3/3 house in a stellar neighborhood renting for the price of a 3/2/2... What's going on? Well, a call to the property manager revealed that what's going on is that the house is in foreclosure. The current owner is renting it out while going through the foreclosure process. I guess that's why they are asking below market rent- make money from it while they can!

Anyway- the property manager was honest about the fact that, after the foreclosure, we might be asked to leave with 30 day notice. Or that we can leave with a 30-day notice. Not what we want, since we would prefer to stay for the whole year. But it got me thinking....

1. If we rent this house, is there any possibility that we could buy it before the foreclosure goes through or once the process is over? Would we, as tenants already in the house, be given any kind of special consideration or "first dibs" in buying the house when the bank is ready to sell it? [ Follow-up: I realize that this is unlikely, since the market is so hot... But is there any chance that we could get this house for less than market value?]  Or will they ask us to leave as soon as the foreclosure is complete? 

2. How long do foreclosures take? This one appears quite complicated and has been dragging on since 2016. [Yes, I looked up the foreclosure lawsuit. :)]  We won't rent it if we are likely to be thrown out when the foreclosure goes through a month later, but we would consider taking a chance if we could live there for a whole year! Especially if we got a chance at buying the house at a discounted price.

Some details: Similar houses in the immediate neighborhood have sold for $295,000- $315,000 in the last year, mostly in the second half of 2017. The principal owed on the house currently is $195,000ish.

Any answers much appreciated!!

There was a duplex for sale in Oviedo recently- built in 2017, I think, and quite small (each side just over 1,000 sq.ft.) but nice. It was listed at $300,000 and went faster than you can blink! There don't seem to be many (or any) small multifamily in the Orlando area. Building costs are high, and the prices don't appear to make sense for builders. 

Hi  @Anthony Fiorini--

Count me in-- as soon as the weather improves and the temperature goes up!

I like the concept of Habitat for Humanity too and think it would be a fun and useful way to spend some time and energy.

Wow. Just.... WOW.

Beyond unbelievable that people can live like this. 

And YES, many landlords are much better off getting a property manager! I personally know that I don't have the patience to deal with tenants, and I would rather use my time and energy doing other things. Unfortunately, experience has taught me that that some PMs are just as clueless about what they are doing (or just incompetent) as hapless landlords, so the key, I think, is not just getting a PM, but being able to find a truly GOOD one. 

I read yesterday that bed bugs are an increasingly big problem in the hotel business and large multifamilies, and that certain cities are especially being hit hard (Baltimore, Washington, DC, Chicago). 

Combining various rankings, 3 out of the top 5 are in Ohio (where I invest). Not surprising to me, unfortunately.

Here's the latest ranking if you are interested:

https://www.bloomberg.com/news/articles/2018-01-08...

This epidemic scares me. I had to treat a property of mine in Columbus just a few months ago, and it was thousands of dollars.... Wiped out an entire year's profits.