Foreclosing in CA, Moving to OR-help

[scone]

Originally Posted by Silverfall

I guess I'm willing to cut the OP some slack... That's just me though.

Great! Then you'll be able to get them into one of your own properties then? Or one of your investors' properties? That's great too. Although, it might come across as "soliciting business" and might therefore be in violation of the rule of the forum. Don't want you to get into any trouble! Take care!

[Silverfall]

Originally Posted by scone

Although, it might come across as "soliciting business" and might therefore be in violation of the rule of the forum. Don't want you to get into any trouble! Take care!

You know you don't get to through things out on a forum and say I'm soliciting business. I was answering your questions.

[liseA]

Originally Posted by jojonow

Please don't turn up your nose at me just because I'm a So Cal Gal...I've always wanted to live in the Pac Northwest. My husband is born & raised outside of Portland, his father is dying, we are sick of the CA rat-race. We want to live a greener, more meaningful life.
So we're re-locating to the Mid-Valley in the spring.
We can't sell our home now, so are having to walk away.
This will trash our prevously PERFECT credit! If we can't negotiate down our 2nd, then we will have to BK just to get out from under it. A gloomy but maybe necessary prospect.
We have good documentd income for last 5 years (over 150K). Can't save a penny here, though, and want our money to go farther.
We would like to rent a large home (for our home-based businesses), like 2000sf or so in the Mid-Valley.
We have excellent references, dogs but no kids.
Real estate folks, will our damaged credit be a big problem in leasing? We can come up with deposits, we're looking to pay between $1500-$1800/month, prefer a home with trees, gardening possibilities, but doesn't have to be "new" or fancy.
This is very difficult time, so please folks, no Cal-trashing. okay?
We are really looking forward to changing our lives for the better.
I've never experienced "seasons", my husband thinks I won't make it since my normal attire is flip-flops and tank-tops 11 months out of the year. But I'm looking forward to getting a Land's End catalog and some hiking boots!
Thanks for your input!
jojonow

Forget the Lands End Catalog I would strongly sugest credit counseling. Also a a private landlord In california myself I would not even consider renting or leasing to you. I would not even care if you had former landlords say you were great at making your payments it is the mistakes you are making in the present that matters most. Your very recent history helps but situations change and it is the present of what is happening with your payments and such that would make me not select you as a tenant. Those that say private Landlords like me might not do background checks or even think about that stuff trust me we do and it is a huge deciding factor. I now live in northern Virginia a seasonal state one of the things you might want to consider also is your heating bill during winter if you are in a bigger home it can get quite high. Good luck on your journey.

[scone]

Originally Posted by Silverfall

You know you don't get to through things out on a forum and say I'm soliciting business.

I didn't say you are soliciting business, I said your posts could be seen as soliciting business. Two different things. But it's not up to me to make that judgment, it's the mod's. Maybe I should ask for Waterlily's opinion on this?

I was answering your questions.

Well, you haven't actually answered the most interesting questions, such as whether you would put the OP into one of your investors' properties (assuming you have some investor clients) when you have a fiduciary duty to help them find the least risky clients.

I mean, it's saintly of you to extend a helping hand, and rent one of your own properties to the OP, but what about your clients? Could you really recommend them to people who, essentially, trust you with their money?

[Silverfall]

If I had a builder client that was teetering on the edge and I had a potential renter that could help to tide him over, I would absolutely talk with him about the possibility. It's not about being saintly.

There are many people that are trying to relocate to other areas that have to rent their homes because they can't sell them. There are many builders that can't sell their new construction homes that are trying to hold it together. Putting a renter like this with someone in that situation doesn't seem like a bad business proposition to me. A new construction home runs a builder $90 a day. The average income of a Salemite is $51,991. They can't afford to pay the rent a builder needs to stop the bleed. This type of renter could.

You see "saintly." I see good business.

Waterlily should ban me if she thinks that I am soliciting business in this thread. If that is how she perceives it, I will leave. What say you Waterlily?

[scone]

Originally Posted by Silverfall

If I had a builder client that was teetering on the edge and I had a potential renter that could help to tide him over, I would absolutely talk with him about the possibility. It's not about being saintly.

The problem with that is, if the builder teeters over the edge into foreclosure, the tenants are forced out, and the builder has probably burned through their first, last, and security. Now the renters have to start all over again, with even less money, and have to explain why they are out of the home. And if the tenants are angry, they could trash the house, leaving the bank holding the bag, and the whole neighborhood worse off. How does this help?

There are many people that are trying to relocate to other areas that have to rent their homes because they can't sell them. There are many builders that can't sell their new construction homes that are trying to hold it together. Putting a renter like this with someone in that situation doesn't seem like a bad business proposition to me.

We're not talking about a standard relocate here, a person with normal credit and a normal builder. The general principle is correct, but we have a toxic situation here, with potential for a blowup on both sides. That may not be bad business for you, but it certainly is for the other parties.

A new construction home runs a builder $90 a day. The average income of a Salemite is $51,991. They can't afford to pay the rent a builder needs to stop the bleed. This type of renter could.

Only if they don't screw up again. But given the size of the OP's debt, and the history of several past screwups, the odds are not good, it seems to me. And when this thing blows up, the builder blames you, the renter blames both you and the builder.

I see good business.

I see a potentially dangerous and risky transaction for all parties. You could get your reputation damaged because you brought in a toxic renter. The builder goes down and smears you. Business must be very, very bad for agents to be willing to take on this kind of risk. Maybe things are even worse than I thought.

Waterlily should ban me if she thinks that I am soliciting business in this thread. If that is how she perceives it, I will leave. What say you Waterlily?

Cool. Do you want me to ask her?

P.S. I can't understand why the OP hasn't looked into Chapter 13 bankruptcy protection. Theoretically hat would stop the foreclosure, and give a repayment window of about 3 - 5 years. Unless their total debt is beyond the limit-- but that's more than a million dollars. Jeez, maybe that's it. $4000 mortgage, HELOC, 200k in credit cards-- yes, that could all add up. Truly toxic levels of debt.

[Silverfall]

Depending on the interest rate that would be a $650,000-$700,000 mortgage.

BK doesn't eliminate the credit card debt, but would restructure that into affordable payments.

While I understand people referring the OP to a credit counselor, this isn't about budgeting. The OP speculated on the real estate market, and they speculated on a business venture and they failed. This is no different than if someone speculated on futures in the stock market. I agree that bankruptcy seems to be the best way to go. I would hire an attorney and get that process started.

As for the screwups, my brother-in-law is an awesome guy and got pressured by family to make a poor investment in a business. Lost his house AND his business which was doing well over making ONE bad choice. He has since rebuilt three great businesses and owns his own home free and clear. Did it in just 10 years. He found someone willing to sell him a home on a land sales contract while he got things squared away. Lesson learned by him: move far away from family, easier to not be pressured that way.

There are those people in the world that take a risk and it fails. There are consequences for that. The OP took a risk and it failed. Now there are consequences. For me, if someone showed me a credit report that showed stellar credit up until they made a bad choice in our current market, that would count for something. For some people on the forum, they would not rent to a person like that, and others would. My point is that the OP will find someone willing to rent to them, and I don't think it will be that hard. Two people who went through the same thing on this forum have attested to that.

Scone, you see a toxic renter and I see a person like my brother-in-law. We just see the OP in a different light which would guide us to make different decisions. Whether the OP is truly a good person or not could only be decided when you met them.

I have known people that look good on paper and then buy a dog/cat/ferrat without telling the landlord. Good credit doesn't always mean good moral people.

[scone]

Originally Posted by Silverfall

Depending on the interest rate that would be a $650,000-$700,000 mortgage.

BK doesn't eliminate the credit card debt, but would restructure that into affordable payments.

While I understand people referring the OP to a credit counselor, this isn't about budgeting. The OP speculated on the real estate market, and they speculated on a business venture and they failed. This is no different than if someone speculated on futures in the stock market. I agree that bankruptcy seems to be the best way to go. I would hire an attorney and get that process started.

Scone, you see a toxic renter and I see a person like my brother-in-law. We just see the OP in a different light which would guide us to make different decisions. Whether the OP is truly a good person or not could only be decided when you met them.

I have known people that look good on paper and then buy a dog/cat/ferrat without telling the landlord. Good credit doesn't always mean good moral people.

And bad credit does not make a person more noble. In my experience, it tends to make them more desperate and liable to make worse and worse decisions-- because they are irrational, panicked. In any case, we may not be looking at just a screwup or three, we may be looking at something more. For example, the OP may have a problem with compulsive spending. (I can think of other scenarios as well.) I mean, have you really read all the OPs posts? There are some disturbing statements about continuing to spend and spend even after the proposed escape from Cali. If that's the case, moving up north will not help them at all. It only changes the venue for further disasters.

So, it's not about the moral qualifications of the OP, it's not about your family or the nobility of giving people a second chance. It's about a couple with a history of messing up over and over, who are contemplating a decision that might make things much worse for them.

You know, If business in Salem is as bad as your posts seem to indicate, I can see why you might find it necessary to survive on builder referrals. Needs must when the Devil drives. But I still do not see how your business strategy will pay off for the OP when (not if) your "teetering" builder goes bankrupt. I mean, you've got your commission, but everyone else still gets screwed. Again, in what way does this serve all parties?

OTOH, if the couple stays put, gets chapter 13, and works out their out of control spending, they have a chance. A few months in a Salem builder's tract house, and then out on the street, is just no good. They would be better off in a hardship trailer taking care of the Dad. There's no shame in starting over from scratch, and they'd only have to move once.

BTW, how much do you make every time on these referrals? Does each party know the credit issues of the other?

[delta07]

Wow, sounds like we have gotten away from the OP's topic and on to more personal attacks. Who cares anymore. It seems this thread has gotten way out of hand.

[Waterlily]

This thread has become a disagreement between 2 people. It's time to close it.