All Forum Posts by: Peter Lambert

@Oscar Toledo 

Hi Oscar - you and your family are in a great position.  If you bought in Central Austin or other desirable neighborhoods in town in 2011 (or before) you probably experienced great appreciation.  A common dilemma for people in Austin who want to realize that equity and still live in a great neighborhood is, what else could you buy for less and be as happy as you are now?  

My two cents:  If you're on the fence in the first place, pick a price that seems ridiculously high for the area based on comps.  A price that y'all would both feel great about that would allow you to find a new home and realize some of the appreciation.  Who knows, you may get it.  If not, enjoy living in a great area and school district for your kids.  

With current market trends, $130K should secure you a spot under a bridge in Austin. $170K you can probably get a nicer bridge spot with a view and fewer carbon emissions...

Hi Chris, in all seriousness, Austin real estate is pretty silly right now. Some good advice from Jon and Mike about renting first to get a feel for the city, and maybe figure out some areas & neighborhoods that appeal to you and your wife.

Everyone has different preferences. For people from Dallas / Fort Worth area, Houston, or Southern California, where they are already accustomed to traffic and spending 30-45 mins to get somewhere, living 15 miles away isn't as big of a deal. On the other hand, some Austin folks don't travel outside of a 5 mile radius, or even own a car.

For Central and "heart of the city" living, you're looking at 78702 (Central East), 78703 (Central West), & 78704 (Central South of the river), but prices reflect the demand and you're looking at anywhere from $250/sq. foot to $500/sq. foot.. Another post mentioned Hutto or Pfluegerville; while those are indeed cheaper, they really aren't Austin. You're looking at an hour drive 5-6 days of the week to most Austin "landmarks". So there has to be something in between, right?

In the ranges you mention, personally I'd look just a little further East (78723) and a little further South (78745) or down to Oak Hill. You could probably find a 1,000sq-1,300sq ft house, two bedroom, maybe three bedroom.

Finding a solid fixer-upper in one of those areas would the way to go in my opinion... But just know you'll be competing with other young couples moving here, rehabbers & flippers, and other investors looking to do the same. Lot of $$ chasing few properties :)

Good luck.

Peter

I agree with the posts above, talk to an attorney. I am not one, nor would I take this as advice, but I live in Texas and had an attorney draft a "Marital Agreement" a few years after being married. Probably very similar to what Jerry suggests as a post nuptial agreement.

We have individual and joint assets, sometimes invest funds individually, sometimes jointly. The basic framework will outline any separate property and any community property. We also wanted to have the flexibility to move things around from separate to community, or vice versa without having to use our attorney each time. So we have a simple form that we both sign if there is an update or change and we just send a copy to our attorney for record keeping.

For example, you find a buy and hold property that takes $50k cash to close. You could purchase it 100% as your separate property using funds solely from your separate property accounts; You could each contribute $25k from separate property accounts and each have 50% ownership (as separate property), or you could purchase the property as community property using funds from community property accounts. Even though Texas is a community property state, you still have options as long as you are both in agreement with what you're trying to achieve.

Hi Dion. I understand this thread has had mixed opinions and cautionary ideas/tones. It's fine, I welcome it, and if it leads to some new insight or helps answer some lingering questions, then it's constructive. No hard feelings.

The first thread this summer posed enough questions for me to get some clarification from my RE attorney. Done.

The most recent comments have convinced me that I need to find a Servicer pronto. Doing some research on that end and finding one ASAP is now at the top of my list. Even if I don't agree with all of the reasons or opinions of fellow members as to why I should get a Servicer or why some regulation may or may not be applicable to my situation, as long as the resulting action of the thread (turnover the servicing to licensed servicer) is a positive one, then it's beneficial.

As far as interfering with the Borrower and nagging him to sell his home, thus far we've discussed the idea a couple of times as one possible solution.. I appreciate the cautionary advice re: the "slippery slope", and I'll be cognizant of any interaction going forward with respect to that topic.

Just FYI, and not trying to be snarky, but below is from one of your posts from August earlier in this thread.

So, I'm confused, because today you post the following:

Dion, back in August you mention: "You want to stay involved", "Setup a make sense place", "Get the property cleaned up and listed", "Commentary around reality will help move things forward"... Is this not advising? Is this not interfering?

Then there's Bill on 12/31 who says "Keep a low profile and get him to sell it".

We're all three in agreement that the most favorable option is for the Borrower to sell the home. Question is what my role can/should be in that process?

Thanks everyone... Perhaps I was a little quick to post. New Tenant called me back this afternoon and assured me it will just be him living there. Based on the couple conversations I've had with him, he seems like a pretty solid guy. Said he'd be the first to let me know if his situation changes, but it's just him.

I think there was some confusion with one of the neighbors. He was outside working in the yard and talks to everyone coming and going. My guess is someone came by to look at the place and was interested in leasing it, and he assumed he was one of the "new tenants", when he was just interested in leasing the place. Good to have people who mean well and keep an eye on things, and usually that's the case.

Place has been leased for about a week, but I noticed it's still listed "For Lease" on several third party sites. I noticed a couple drove by and were looking at the house when I went by the property today - went to wrap outdoor pipes, it's getting into the 20s in Austin which means we all frantically begin preparing for the worst :)

Thanks for the feedback Bill. A lot of what you mentioned was discussed in the first "round" when I initially brought my situation to the forum's attention. The topic was re-ignited when I gave an update in response to the gentleman from El Paso who was checking in on how things are going. That, in turn led to reexamining some of the initial issues as well as discussing DF and new regulations that go in effect this month. The one common suggestion from the summer thread and the latest feedback is the importance of getting a Servicer. I'll begin there.

Just FYI, the Trustee is a real estate attorney (partner) at the law firm that drafted the Note and Deed of Trust for me. He has handled, I don't know, hundreds of foreclosures in my county and surrounding counties for many years. I have confidence in him and have no interest in replacing him, a very competent attorney with experience and knowledge specific to my state. When I initially brought him questions about the SAFE Act and my compliance I was assured I was exempt. I'm not in the business of this. It's the only note I own. I'm relying on my RE attorney when it comes to enforceability and validity of the note. If things get to a foreclosure (which I don't think they will given the equity and other available options), the enforceability and competency may be tested. Until then, I'm not going to second guess it...

As I mentioned in the update, borrower has been making relatively timely payments for the last quarter, and I'm basically in wait and see mode. Convincing the borrower to sell is my main objective, and receiving payments in the meantime.

You're correct that the Deed of Trust clearly states that Borrower is in default if he doesn't pay his property taxes. In 2012, I paid them; Probably shouldn't have. This year (2013) I'm not. If he doesn't pay them, they will be late Feb 1st. Delinquent notices from the Lender and taxing authority might help the Borrower reach the conclusion that he can no longer afford the home.

Hi Patrick,

Yes, criteria and rental application clearly states that anyone over the age of 18 must submit an application. Same with the lease, any co-habitant over the age of 18 must be on the lease. Tenant may not sub-lease, and the signed lease allows for visitors to stay 7 days.

I understand your comment re: being careful about increasing the rent simply because it's three guys. I certainly don't want to border on violating any fair housing laws. I'm thinking about it more along the lines of: The initial tenant can qualify on his own, there is some added risk and wear and tear on the dwelling with three tenants instead of one - Perhaps a slight rent increase would make all parties happy?

Again, I still have yet to speak directly with the tenant. The neighbor I heard from I trust, and apparently spoke for a while with one of the other guys. Think my plan will be to 1.) Speak with the original Tenant, 2.) Run background checks on the other two and meet them personally, 3.) Modify the lease to add their names, 4.) Hopefully get them to agree to either a slight rent increase, or a larger security deposit.

Not concerned about ability to pay in this case. Just don't want the house to be a party house and get trashed... There are other qualified applicants out there.

Thoughts?

Thanks for the quick reply. Yes, I agree, I would definitely require an application and background check on the potential other two and would want to meet the personally before adding to the lease. I'm not handing over any keys until we get this nailed down. I'm sure I could come up with an adjusted rent that's reasonable if three tenants are indeed living there.

Bigger concern is character and the deception/misleading application. That combined with three young males changes my perception of what these tenants may be like. (though you never know until they move in, screening only gets you so far). I had a "good" feeling about the original tenant based on the results of the screen plus my conversation with him.

Scenario -

Lease Application for one tenant (checked by our realtor) - great employment history, rental history and credit score. No criminal background. Looked great on paper, and is why we went with this tenant. Signed a Lease beginning Jan 1, 2014, paid security deposit and first month's rent.

Due to working out of town, tenant told me he could not move in for another week. Neighbor contacts me today and tells me he met "one of the new tenants". Apparently three of them are planning on living there.

Still have yet to get ahold of the tenant. Tenant does not have keys yet, house has is still vacant, tenant paid security deposit and one month's rent.

How should I proceed? Run checks on the other two? If they are ok, modify the the lease? I would prefer not to have three guys living in this house. If I went that route I would likely want to increase the rent.

Thoughts?

Thanks, just thought I'd ask. BP is a community, and I have received comments from several members recommending enlisting the services of a Mortgage Servicing Company.

I can certainly search and do some research, but one seeks advice and recommendations from the community who has experience in this particular area. Just seems odd to hear the repetitive "Get it to a servicer now", but crickets when I ask if anyone in the community has a recommendation in my particular state.

Admittedly, I don't have experience working with a Servicer, so I'll ask around locally and begin throwing darts at a board.