And Now This?
First, I’d like to thank President Obama, since his Democratic Party tells us that the stimulus worked, the economy turned around, and everything is just peachy. (Link here)
But back to reality.
I wrote extensively last fall about why we moved out of Tacoma (main post here…). We’d found a nice rental in Lacey, made even better by the fact that it was a redeployed military family with kids…we felt like we were helping them out, and even asked for and got a 2-year lease (plus another month, since the property management company made an error on the contract).
Well, last week I got an odd call on my cell from a number I didn’t recognize, so I let it go to voicemail. Then I Googled the number…turned out to be a real estate agent down here. Not knowing why I was being called (autodialer, needing computer help, or something else) I texted the number when I saw it was a mobile.
Long story short, turns out the owners are looking at a possible short sale on their house. Which means, most likely, that they’ve been taking our always on-time rental payments and not paying their mortgage.
Apparently it’s becoming more common now…
So…we’re in state of limbo for a bit, especially now that they’ve dropped the local property management company.
The scenarios are:
1. It goes into foreclosure and the bank give us cash for keys, where we leave early and in a timely manner to get money in return.
2. The bank honors the lease and we stay while they try to sell it.
3. Someone else buys it and honors the lease.
4. Someone else buys it and gives us a 90 day notice to vacate.
Not sure how things will go. Heck, not even sure at this point who we pay our rent to next month!
The uncertainty is the worst part…once we know things, we can deal with them.
But for now, all we can do is wait.
And keep good records.
First, I’d like to thank President Obama, since his Democratic Party tells us that the stimulus worked, the economy turned around, and everything is just peachy. (Link here) But back to reality. I wrote extensively last fall about why we moved out of Tacoma (main post here…). We’d found a nice rental in Lacey, made…
Doesn't necessarily mean that they've taken your rent payments and not made their mortgage payments. A short sale has nothing at all to do with being behind on your mortgage. A short sale simply means they have to sell (maybe your rent doesn't cover their mortgage, taxes, HOA dues, etc) and they have to sell for less than what they owe.
A strong majority of people who are forced to short sell are responsible owners who are current on their mortgage. With prices down over 30% in many parts of the area, they simply can't sell for what they owe and they can't afford to hang onto a house they don't live in anymore.
True…but there is more information that I did not put into the post.
And logically, if you have a rental and a long-term lease, you have the luxury of waiting out the housing prices, and have no need to be in a rush to sell the house. They were using a property management company, so it is highly unlikely that they did not plan out coverage of expenses.
Yeah, i agree Scott. Unless they are in some kind of financial crisis, that would be my guess as well. its a HORRIBLE time to sell. At any rate, know that your family will be in our prayers. Please let us know if there's anything we can do practically to help. We'd be glad to help you move, have big group kid sleepovers, whatever 🙂