U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 03-08-2018, 09:22 AM
 
383 posts, read 299,709 times
Reputation: 821

Advertisements

This is my first post in the Real Estate forum in a long time. I need some gimlet-eye professional or plain shark to give me the best advice I could offer as a lifelong renter to a friend. To avoid a TL; DR: I need advice to give someone who almost certainly will not take it. I need it nevertheless for my sanity.

************************************************** *********************************

This homebuyer managed in 2007 to convince an aged parent to giving her the down-payment for a rambling two-family structure whose purchase I strongly argued against for a variety of reasons having to do with the integrity of the structure and potential to be a money-making investment. While I'm a lifelong renter, I have taken care of three properties top-to-bottom with the exception of roofing and wiring and saw, fast, that this home would be a money-pit. But the buyer persisted; within a month, the second story bath had collapsed through the ceiling into the first floor.

Over the course of ten years and two marriages, the buyer moved out of state--far, far out of state. Only recently has the buyer returned, minus a third spouse and forced to live in the second-story of this two-unit home. During the time away, the place was tenanted by drifters and/or dreamers, one of whom gutted the place on the (unwritten) understanding the renter would purchase the home. The renter then fell in love and left the region. In terms of desirability, the region as a whole ranks very very low (in comparison to other regions of the state and certainly of the nation). The neighborhood itself is a rare exception to the area's general poverty.

If I were to make a list of needed remediations that can be eyeballed by someone as ignorant as I am, not to mention mere maintenance neglected while the buyer lived out of state and the quality of tenant fell lower and lower (I was told by a law enforcement officer last year he would not want to cross the threshold for health sake), the dollar amount would be higher than the mortgage, currently 60K.

The upside (?) of the nightmare is that this blight is on a street where you could eat off the grass of every other property owner's land. Municipal big wigs own homes very close by. The next-door neighbors, understandably "frenemies," offered 35K for it when a For Sale sign finally went up on it. Even to someone as humiliated to be associated with the owner as I am, that offer was a slap in the face, because the lot alone would go for more. However, the owner won't lower the 6-figure asking price, which makes potential buyers run, not walk, after showings.

The owner had to rent and live in another property upon returning to the region while evicting one tenant for every infraction can you think of.

The landlord of this temporary rental suggested to the owner to just "walk away from it." Because I do not consider "walking away" from one's financial messes sound advice, I suggested instead lowering the price and if necessary asking to the penny the amount of the mortgage and estimated closing costs. This would be a way to avoid potential zoning/legal issues as well as financial issues that will surely arise when the lack of maintenance becomes something worse than mere lack of maintenance.Getting rid of the tenants currently there is not an issue legally, as they are there on a month-to-month Section 8 lease.

I made this post because I have never owned a home. I am desperate although even if the house sold for a profit, I would not gain a penny (or accept one). I'd be very grateful for any responses here or by private message regarding honorable ways to coax home"owners" in over their heads on reasons to sell, fast, in the springtime. (This is a four-season area.) I know that some parts of what I'm asking deal with fear, grandiosity, and pathology, and not with selling real estate.

Sincere thanks for anyone who has been kind enough to read this post.
Reply With Quote Quick reply to this message

 
Old 03-08-2018, 10:16 AM
 
Location: The Triad (NC)
26,914 posts, read 58,068,998 times
Reputation: 29368
Quote:
Originally Posted by Purplecow View Post
This homebuyer managed in 2007 to convince an aged parent to giving her the down-payment
And at a price that reflected being at the top of an inflated market too?

Quote:
...within a month, the second story bath had collapsed through the ceiling into the first floor.
...the buyer moved out of state--far, far out of state.
...the place was tenanted by drifters and/or dreamers one of whom gutted the place

the region as a whole ranks very very low
The neighborhood itself is a rare exception to the area's general poverty.

If I were to make a list... the dollar amount would be higher than the mortgage, currently 60K.
The next-door neighbors, understandably "frenemies," offered 35K for it
...the owner won't lower the 6-figure asking price

....(someone) suggested to the owner to just "walk away from it."
I do not consider "walking away" from one's financial messes sound advice
What's the balance on the mortgage?
How far in arrears is your friend?
Reply With Quote Quick reply to this message
 
Old 03-08-2018, 10:35 AM
 
3,323 posts, read 7,274,182 times
Reputation: 4106
Quote:
Originally Posted by Purplecow View Post
This is my first post in the Real Estate forum in a long time. I need some gimlet-eye professional or plain shark to give me the best advice I could offer as a lifelong renter to a friend. To avoid a TL; DR: I need advice to give someone who almost certainly will not take it. I need it nevertheless for my sanity.

************************************************** *********************************

This homebuyer managed in 2007 to convince an aged parent to giving her the down-payment for a rambling two-family structure whose purchase I strongly argued against for a variety of reasons having to do with the integrity of the structure and potential to be a money-making investment. While I'm a lifelong renter, I have taken care of three properties top-to-bottom with the exception of roofing and wiring and saw, fast, that this home would be a money-pit. But the buyer persisted; within a month, the second story bath had collapsed through the ceiling into the first floor.

Over the course of ten years and two marriages, the buyer moved out of state--far, far out of state. Only recently has the buyer returned, minus a third spouse and forced to live in the second-story of this two-unit home. During the time away, the place was tenanted by drifters and/or dreamers, one of whom gutted the place on the (unwritten) understanding the renter would purchase the home. The renter then fell in love and left the region. In terms of desirability, the region as a whole ranks very very low (in comparison to other regions of the state and certainly of the nation). The neighborhood itself is a rare exception to the area's general poverty.

If I were to make a list of needed remediations that can be eyeballed by someone as ignorant as I am, not to mention mere maintenance neglected while the buyer lived out of state and the quality of tenant fell lower and lower (I was told by a law enforcement officer last year he would not want to cross the threshold for health sake), the dollar amount would be higher than the mortgage, currently 60K.

The upside (?) of the nightmare is that this blight is on a street where you could eat off the grass of every other property owner's land. Municipal big wigs own homes very close by. The next-door neighbors, understandably "frenemies," offered 35K for it when a For Sale sign finally went up on it. Even to someone as humiliated to be associated with the owner as I am, that offer was a slap in the face, because the lot alone would go for more. However, the owner won't lower the 6-figure asking price, which makes potential buyers run, not walk, after showings.

The owner had to rent and live in another property upon returning to the region while evicting one tenant for every infraction can you think of.

The landlord of this temporary rental suggested to the owner to just "walk away from it." Because I do not consider "walking away" from one's financial messes sound advice, I suggested instead lowering the price and if necessary asking to the penny the amount of the mortgage and estimated closing costs. This would be a way to avoid potential zoning/legal issues as well as financial issues that will surely arise when the lack of maintenance becomes something worse than mere lack of maintenance.Getting rid of the tenants currently there is not an issue legally, as they are there on a month-to-month Section 8 lease.

I made this post because I have never owned a home. I am desperate although even if the house sold for a profit, I would not gain a penny (or accept one). I'd be very grateful for any responses here or by private message regarding honorable ways to coax home"owners" in over their heads on reasons to sell, fast, in the springtime. (This is a four-season area.) I know that some parts of what I'm asking deal with fear, grandiosity, and pathology, and not with selling real estate.

Sincere thanks for anyone who has been kind enough to read this post.

"First, the Earth cooled...."


I'm certain you can condense this into one sentence.
Reply With Quote Quick reply to this message
 
Old 03-08-2018, 10:37 AM
 
4,297 posts, read 6,430,398 times
Reputation: 12536
There are 3 paths the owner can take by my viewpoint.

Carry on as they have been until they are no longer capable. It'll be a slow drain of money on a property that always needs something. It's an anchor tied to the leg of a drowning man by the sounds of things.

Find the money to invest in the property to either make it worth the price they want to ask or for them to want to live there again and adjust rent to compensate for condition. I'm going to hazard that this owner neither has the means nor the understanding of how to do this.

And finally, get out from under it. Find out their costs to keep it (mortgage, insurance, taxes, rough upkeep) and point out what Else the owner could be doing with that money. Then offer it to the neighbors for the no gain/no loss price (as in the owner walks away with the home loan paid but not a cent in or out of pocket), if they don't bite then list it for sale with the same price point. Finally, try to get the bank to take ownership for a clean slate/no credit ding.

But those are the 3 courses.. make it better, do nothing, get rid of it. But, like you said, they won't listen anyway.
Reply With Quote Quick reply to this message
 
Old 03-08-2018, 10:43 AM
 
Location: Northern Virginia
4,706 posts, read 4,859,325 times
Reputation: 11135
Quote:
Originally Posted by Purplecow View Post
This is my first post in the Real Estate forum in a long time. I need some gimlet-eye professional or plain shark to give me the best advice I could offer as a lifelong renter to a friend. To avoid a TL; DR: I need advice to give someone who almost certainly will not take it. I need it nevertheless for my sanity.

************************************************** *********************************

This homebuyer managed in 2007 to convince an aged parent to giving her the down-payment for a rambling two-family structure whose purchase I strongly argued against for a variety of reasons having to do with the integrity of the structure and potential to be a money-making investment. While I'm a lifelong renter, I have taken care of three properties top-to-bottom with the exception of roofing and wiring and saw, fast, that this home would be a money-pit. But the buyer persisted; within a month, the second story bath had collapsed through the ceiling into the first floor.

Over the course of ten years and two marriages, the buyer moved out of state--far, far out of state. Only recently has the buyer returned, minus a third spouse and forced to live in the second-story of this two-unit home. During the time away, the place was tenanted by drifters and/or dreamers, one of whom gutted the place on the (unwritten) understanding the renter would purchase the home. The renter then fell in love and left the region. In terms of desirability, the region as a whole ranks very very low (in comparison to other regions of the state and certainly of the nation). The neighborhood itself is a rare exception to the area's general poverty.

If I were to make a list of needed remediations that can be eyeballed by someone as ignorant as I am, not to mention mere maintenance neglected while the buyer lived out of state and the quality of tenant fell lower and lower (I was told by a law enforcement officer last year he would not want to cross the threshold for health sake), the dollar amount would be higher than the mortgage, currently 60K.

The upside (?) of the nightmare is that this blight is on a street where you could eat off the grass of every other property owner's land. Municipal big wigs own homes very close by. The next-door neighbors, understandably "frenemies," offered 35K for it when a For Sale sign finally went up on it. Even to someone as humiliated to be associated with the owner as I am, that offer was a slap in the face, because the lot alone would go for more. However, the owner won't lower the 6-figure asking price, which makes potential buyers run, not walk, after showings.

The owner had to rent and live in another property upon returning to the region while evicting one tenant for every infraction can you think of.

The landlord of this temporary rental suggested to the owner to just "walk away from it." Because I do not consider "walking away" from one's financial messes sound advice, I suggested instead lowering the price and if necessary asking to the penny the amount of the mortgage and estimated closing costs. This would be a way to avoid potential zoning/legal issues as well as financial issues that will surely arise when the lack of maintenance becomes something worse than mere lack of maintenance.Getting rid of the tenants currently there is not an issue legally, as they are there on a month-to-month Section 8 lease.

I made this post because I have never owned a home. I am desperate although even if the house sold for a profit, I would not gain a penny (or accept one). I'd be very grateful for any responses here or by private message regarding honorable ways to coax home"owners" in over their heads on reasons to sell, fast, in the springtime. (This is a four-season area.) I know that some parts of what I'm asking deal with fear, grandiosity, and pathology, and not with selling real estate.

Sincere thanks for anyone who has been kind enough to read this post.
You have shared your advice, and that's all you can do. The will sink or swim, and judging by the past history of repeated bad choices, they will sink. Not your circus, not your monkeys.
Reply With Quote Quick reply to this message
 
Old 03-08-2018, 12:32 PM
 
383 posts, read 299,709 times
Reputation: 821
Quote:
Originally Posted by Pfhtex View Post

"First, the Earth cooled...."


I'm certain you can condense this into one sentence.
Unkind, sir or madame. Quite unkind. I wouldn't make fun if the situation were reversed. I hope you feel better for having made fun of me.
Reply With Quote Quick reply to this message
 
Old 03-08-2018, 12:34 PM
 
383 posts, read 299,709 times
Reputation: 821
Quote:
Originally Posted by HokieFan View Post
You have shared your advice, and that's all you can do. The will sink or swim, and judging by the past history of repeated bad choices, they will sink. Not your circus, not your monkeys.
Thank you. I spoke after posting with someone involved with the subsidized tenants, and then did lots of Googling about assumed mortgages.

Sometimes, posting is its own answer, if that makes any sense--and I think from what you wrote, it would make sense to you. It's like watching some drowning and refusing a life preserver.
Reply With Quote Quick reply to this message
 
Old 03-08-2018, 12:40 PM
 
383 posts, read 299,709 times
Reputation: 821
Quote:
Originally Posted by Brian_M View Post
There are 3 paths the owner can take by my viewpoint.

Carry on as they have been until they are no longer capable. It'll be a slow drain of money on a property that always needs something. It's an anchor tied to the leg of a drowning man by the sounds of things.

Find the money to invest in the property to either make it worth the price they want to ask or for them to want to live there again and adjust rent to compensate for condition. I'm going to hazard that this owner neither has the means nor the understanding of how to do this.

And finally, get out from under it. Find out their costs to keep it (mortgage, insurance, taxes, rough upkeep) and point out what Else the owner could be doing with that money. Then offer it to the neighbors for the no gain/no loss price (as in the owner walks away with the home loan paid but not a cent in or out of pocket), if they don't bite then list it for sale with the same price point. Finally, try to get the bank to take ownership for a clean slate/no credit ding.

But those are the 3 courses.. make it better, do nothing, get rid of it. But, like you said, they won't listen anyway.
I usually edit quoted posts, but this answer was so helpful. Since I'm so ignorant of real estate dealings, I wasn't aware that the "flipper" landlord who advised "walking away from it" might not have meant just shirk responsibility. I wasn't aware that a bank could take ownership in a quid pro quo type of sense.

Sincere thanks. Everything else you wrote was like I had my own "real estate psychologist." I spoke to someone involved with the subsidized tenants, and I learned I'm much more ignorant than I thought, about the numbers of people who overestimate their ability to maintain a home. Maintain.

Hope someone does something nice for you today!
Reply With Quote Quick reply to this message
 
Old 03-08-2018, 12:46 PM
 
383 posts, read 299,709 times
Reputation: 821
Quote:
Originally Posted by MrRational View Post
And at a price that reflected being at the top of an inflated market too?


What's the balance on the mortgage?
How far in arrears is your friend?
Yes, I assume that February, 2007, wasn't the best time for a mortgage...which I learned after being told about assumable mortgages, but then seeing that the percentage the owner is probably paying might be higher than a buyer would pay now.

The mortgage is 60K, give or take. The owner isn't in arrears at all. It's that no--I mean no--budget for maintenance or remediation exists.

Sincere thanks for taking the time to read the post. As I said to another person kind enough to respond, sometimes ginning up the courage to make the actual post is part of the answer (if that makes any sense).
Reply With Quote Quick reply to this message
 
Old 03-08-2018, 12:55 PM
 
Location: The Triad (NC)
26,914 posts, read 58,068,998 times
Reputation: 29368
Quote:
Originally Posted by Purplecow View Post
...sometimes ginning up the courage to make the actual post is part of the answer
(if that makes any sense).
Makes perfect sense. Organizing the thoughts is the first step to understanding them.
Quote:
The mortgage is 60K, give or take.
But they might still be 'upside down' if the FMV (as is) rests at the $35,000 level.
Or even at $50,000.

Short Sale:
https://en.wikipedia.org/wiki/Short_sale_(real_estate)
https://www.investopedia.com/mortgag...sale-property/
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top