Comments on: Meet Your New Landlord: Uncle Sam (aka Fannie Mae) http://www.biggerpockets.com/renewsblog/2009/12/01/meet-landlord-uncle-sam-aka-fannie-mae/ Learn, Network, Invest Sun, 12 Feb 2012 02:43:58 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Hassan Malikhttp://www.biggerpockets.com/renewsblog/2009/12/01/meet-landlord-uncle-sam-aka-fannie-mae/#comment-76292 Hassan Malik Tue, 15 Dec 2009 05:25:46 +0000 http://www.biggerpockets.com/renewsblog/?p=9043#comment-76292 Hi Florence, Great blog, as for as Uncle Fannie Mae creating the program delinquent home owner becoming tenents. There is some thing fishy, Uncle Sam may hold on to the properties for a few years. Then turn around and sell the properties back to same tenents when market turns around or sell them to investors at a higher rate compare to now. Going back to Bush Sr. era NYC did the same thing in Harlem, NYC. Those brown stone properties were sold in last few years to individuals in access of Millions of Dollars.Coming back to Stephen's comments, a great majority of home owners who can not pay $2,500++ mortgage, but they can afford to pay rent $1,000 to $1,500 a month. Obviously when selecting a tenent you'll have some requirements that meet your criteria. Hi Florence,
Great blog, as for as Uncle Fannie Mae creating the program delinquent home owner becoming tenents. There is some thing fishy, Uncle Sam may hold on to the properties for a few years. Then turn around and sell the properties back to same tenents when market turns around or sell them to investors at a higher rate compare to now. Going back to Bush Sr. era NYC did the same thing in Harlem, NYC. Those brown stone properties were sold in last few years to individuals in access of Millions of Dollars.

Coming back to Stephen’s comments, a great majority of home owners who can not pay $2,500++ mortgage, but they can afford to pay rent $1,000 to $1,500 a month. Obviously when selecting a tenent you’ll have some requirements that meet your criteria.

]]> By: Scarletthttp://www.biggerpockets.com/renewsblog/2009/12/01/meet-landlord-uncle-sam-aka-fannie-mae/#comment-76057 Scarlett Mon, 07 Dec 2009 17:19:11 +0000 http://www.biggerpockets.com/renewsblog/?p=9043#comment-76057 If they can't pay the rent, you evict them. I would always TRY to keep the current occupants in if they were willing to pay something close to market rent. There is no move in/move out damage, and they may even be able to buy the house again in the future! This is much cheaper and faster than foreclosing and it's much less likely the borrower will trash the house or abandon it without notice, leaving it to be trashed by someone else. One issue with a deed in lieu is the tax consequences. The amount forgiven is considered taxable income to the borrower who is let off the hook, and many borrowers don't want to have to deal with that. A short sale avoids this. Also, state laws vary so widely as to how foreclsures work that most national policy can't really take this into account. One of the biggest problems with the foreclosure crisis is this huge variation in state laws and time tables. Texas foreclosure is fast and easy and reasonably inexpensive, and they are suffering much less there- not only the lenders, but also the borrowers who are directly affected and those that live in neighborhoods with lots of foreclosures who are indirectly affected. In Ohio and Fl, foreclosure can take 7-9 months very easily and they are suffering a lot more down there, partyl just because of this. People down there are much less likely to want to go for a DIL (deed in lieu) and start paying rent now because they know if they just stop paying they will be able to save up money for 7-9 months or longer if they stall effectively. By then, they will have enough money saved up to make a downpayment on a another house. Moving is less of a hassle when compared to 9 months of free rent. In Texas, you would only get maybe 2 months of free rent, and moving is a pain, so they'd be much more likely to go for this. HOWEVER, Texas law is weird, and DILs are much less likely there compared to foreclosures for legal reasons that I do not entirely understand. So this approach would not likely work well in Texas either. If they can’t pay the rent, you evict them. I would always TRY to keep the current occupants in if they were willing to pay something close to market rent. There is no move in/move out damage, and they may even be able to buy the house again in the future! This is much cheaper and faster than foreclosing and it’s much less likely the borrower will trash the house or abandon it without notice, leaving it to be trashed by someone else. One issue with a deed in lieu is the tax consequences. The amount forgiven is considered taxable income to the borrower who is let off the hook, and many borrowers don’t want to have to deal with that. A short sale avoids this. Also, state laws vary so widely as to how foreclsures work that most national policy can’t really take this into account. One of the biggest problems with the foreclosure crisis is this huge variation in state laws and time tables. Texas foreclosure is fast and easy and reasonably inexpensive, and they are suffering much less there- not only the lenders, but also the borrowers who are directly affected and those that live in neighborhoods with lots of foreclosures who are indirectly affected. In Ohio and Fl, foreclosure can take 7-9 months very easily and they are suffering a lot more down there, partyl just because of this. People down there are much less likely to want to go for a DIL (deed in lieu) and start paying rent now because they know if they just stop paying they will be able to save up money for 7-9 months or longer if they stall effectively. By then, they will have enough money saved up to make a downpayment on a another house. Moving is less of a hassle when compared to 9 months of free rent. In Texas, you would only get maybe 2 months of free rent, and moving is a pain, so they’d be much more likely to go for this. HOWEVER, Texas law is weird, and DILs are much less likely there compared to foreclosures for legal reasons that I do not entirely understand. So this approach would not likely work well in Texas either.

]]> By: Stephen Davishttp://www.biggerpockets.com/renewsblog/2009/12/01/meet-landlord-uncle-sam-aka-fannie-mae/#comment-75943 Stephen Davis Thu, 03 Dec 2009 17:52:07 +0000 http://www.biggerpockets.com/renewsblog/?p=9043#comment-75943 You are so right. I also like the idea of an incentive for investors to lease back but I still worry. If they can't pay the mortgage, can they (will they) pay the rent. I would need a large incentive. .-= Stephen Davis´s last blog ..<a href="http://feedproxy.google.com/~r/LifestylesUnlimited/~3/n1bRTUe77VY/real_estate_investing_links_for_december_2_2009" rel="nofollow">Real Estate Investing Links for December 2, 2009</a> =-. You are so right. I also like the idea of an incentive for investors to lease back but I still worry. If they can’t pay the mortgage, can they (will they) pay the rent. I would need a large incentive.
.-= Stephen Davis´s last blog ..Real Estate Investing Links for December 2, 2009 =-.

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