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Originally posted by Kidicious
Also, a lot of landlords find that they don't like to be landlords. I do many of their tax returns here.
Also, a lot of landlords find that they don't like to be landlords. I do many of their tax returns here.
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That's why God created property management companies.
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It's not as rare as you think. The bubble was in large part due to these types of purchases. Everyone wanted to buy investment properties, and the basic scam was 0 down, interest only which banks were more than happy to go for. Buyers weren't counting on rents to make money, they were counting on appreciation (as were the banks). And now they're ****ed.Originally posted by DanS
Yes, in that rare situation, it might make sense to bail on the mortgage.
As you said earlier, 1/6th of the mortgages nationwide are underwater. And given how most of those will be focused in bubble states like CA where prices have dropped by closing in on half across the board, it's underwater by a lot in most cases. And prices are still falling. And the majority of ARMs haven't even hit yet.Comment
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Nice try, but Chicago isn't California. According to my figures, prices are down only 11% in the Chicago metro area.I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891Comment
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Could it be.... Oh I don't know...... SATAN!Originally posted by Zkribbler
That's why God created property management companies.
I drank beer. I like beer. I still like beer. ... Do you like beer Senator?
- Justice Brett KavanaughComment
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You said it was a rare situation... with no qualifications. If you want to say it's a rare situation in Chicago, say that.Originally posted by DanS
Nice try, but Chicago isn't California. According to my figures, prices are down only 11% in the Chicago metro area.Comment
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Again, WTF?Originally posted by DanS
Because the banks aren't and don't want to be landlords?
New owners don't have to respect established leases?In Soviet Russia, Fake borises YOU.Comment
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According to the article things aren't that great in Chicago either.Originally posted by DanS
Nice try, but Chicago isn't California. According to my figures, prices are down only 11% in the Chicago metro area.I drank beer. I like beer. I still like beer. ... Do you like beer Senator?
- Justice Brett KavanaughComment
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It was you who set up the hypothetical of a full 50% drop in value and quoted some extreme situations in support of it. Don't blame me.Originally posted by Aeson
You said it was a rare situation... with no qualifications. If you want to say it's a rare situation in Chicago, say that.I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891Comment
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You know about taxes, right? And other costs of ownership?Originally posted by DanS
If a landlord's expenses (mortgage) on a property are less than the income (rent), why wouldn't he do whatever he can to keep the property?
No, it's pretty clear in most instances of foreclosure that the landlord's mortgage payment is larger than the rent.
In any event, secured or not, lease rights should take precedence over mortgages. I don't support what the sheriff is doing, personally, because he's taking the law into his own hands - but I absolutely agree with his principle.<Reverend> IRC is just multiplayer notepad.
I like your SNOOPY POSTER! - While you Wait quote.Comment
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And you called the situation rare, with no qualification. You are admitting it was my hypothetical (also with no specific location) and trying to pretend it was about Chicago now.Originally posted by DanS
It was you who set up the hypothetical of a full 50% drop in value and quoted some extreme situations in support of it. Don't blame me.
It doesn't have to be $400k underwater either for someone to walk away. I used an example (a rather common one in the area I've been living much of the last 8 years) to illustrate the principle. Being underwater on a mortgage is a bad thing for all involved, it means there little to no incentive to make it work.
Even a 11% drop could be enough. Certainly for any small margin purchases, especially with interest only ARMs set to kick in higher payments soon, with no chance to flip the property. Remember these types of purchases were made assuming appreciation. Swapping that expected appreciation for depreciation is essentially doubling the hit to the viability of the investment.
Factor in that a lot of these buyers didn't have great credit to begin with, and it takes even less for them to be willing to take the credit hit...Comment
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If you've ever been a landlord whose gotten a telephone call at 3 a.m. because of a tenant's urgent problem, you've learn to bless property management companies.Originally posted by Kidicious
Could it be.... Oh I don't know...... SATAN!
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I would never be involved in renting houses. It's the worst kind of capitalist.Originally posted by Zkribbler
If you've ever been a landlord whose gotten a telephone call at 3 a.m. because of a tenant's urgent problem, you've learn to bless property management companies.
I drank beer. I like beer. I still like beer. ... Do you like beer Senator?
- Justice Brett KavanaughComment
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Yes, providing other people with a place to live is just downright atrocious.Originally posted by Kidicious
I would never be involved in renting houses. It's the worst kind of capitalist.Comment
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That's the attitude that a lot of them have while they are collecting as much rent as they can. It doesn't work like that. Business is business and charity is charity.Originally posted by Winston
Yes, providing other people with a place to live is just downright atrocious.I drank beer. I like beer. I still like beer. ... Do you like beer Senator?
- Justice Brett KavanaughComment
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He's right, you know.Comment
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