Comments on: Program Update

By: clearfund

clearfund — Thu, 04 Feb 2010 20:17:54 +0000

Re: Tenants, does anyone know who is liable for a tenants security deposit and last months rent (if they paid both of those).

or does the bank stipulate that the ‘cash for keys’ is in lieu of any claims the tenant may have for cash, etc?

You know that security deposit (typically equal to a months rent) was spent on landlord toys within hours of receiving that check…

By: IRE

IRE — Thu, 04 Feb 2010 10:01:48 +0000

I had to evict an owner-occupant. At first she was only talking through her lawyer (one of the loan-mod outfits that charged her $7000 in fees and she still wound up losing the place), but then after she found out it was an individual who bought it and not a bank she was very cooperative and left within a month.

By: CA renter

CA renter — Thu, 04 Feb 2010 06:08:01 +0000

I was pretty nervous over the prospects of an occupied Trustee purchase myself……….especially one that is occupied by renters who apparently get even MORE government protection than an owner-occupant.
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They should get more protection. In most cases, the renters were paying their rent; whereas with the “owner-occupied” homes, the “owner” failed to pay their mortgage in every single case.

And yes, it appears as though it’s those highly vaunted “owners” who most often thrash the place, not the much maligned renters.

By: murf2222

murf2222 — Thu, 04 Feb 2010 03:16:43 +0000

“I’ve had to evict 30-40 people over the last two years, and it has been relatively quiet and unremarkable – but the banks offer cash for keys so that tends to make the occupants happy at the end. I’ve had a couple turn down the cash-for-keys, but eventually they go (2-3 extra months). Tenants get their lease terms honored, or have 90 days to vacate, whichever is longer, and any former owners still occupying can be given a 3-day notice to vacate. I haven’t seen one happen yet (the banks have been forgiving) but a 3-day would probably set off some panic in former owners who have been milking the free-rent program for months. Figure that cash-for-keys will fix just about anything, it’s just a matter of how much.”

But now I’m starting to think that having renters in there vs owner-occupants would be BETTER. You gotta think that a renter would look at a cash-for-keys offer as an unexpected freebie.

I’d bet that the renter would be the more likely candidate to grab the cash and vacate quickly/damage-free. Of course buying an empty house is obviously the preferred route.

By: Jim the Realtor

Jim the Realtor — Thu, 04 Feb 2010 02:09:54 +0000

The seasoning is a big concern, and if you wanted to use the bridge financing and refi promptly (less than 60 days), I’m going to insist that people use my mortgage originator who has 2 lenders with no seasoning required.

The bridge financier doesn’t want to get hung up, and neither do the buyers at high interest rates.

By: murf2222

murf2222 — Thu, 04 Feb 2010 02:07:01 +0000

Jim, I heard on the news that the “seasoning” rules were being relaxed for refinancing FHA loans. Do you know if that pertains to conventional refinancing of a Trustee sale purchase too?

You mentioned that you have lined up money for 60 day bridge-financing of trustee sale purchases, but unless we can refinance into a conventional loan most of us that want to buy at Trustee are kind of handcuffed.

By: CA renter

CA renter — Thu, 04 Feb 2010 00:22:30 +0000

I think it’s a good deal, Jim. Count me as one of the “frustrated buyers” who’s tired of looking at the picked-over, overpriced inventory on the MLS. Looking forward to seeing some good stuff at the trustee sales, and think the risk is well worth it.