Here's a posting I made over on the T2V Message Board earlier today. I don't really feel like making another one on the blog explaining things, so you can pretty much get the idea of what's happened this week from the posting below. It sucks that we have to move again so soon, but it appears the search was very quick this week and we have a good idea on the new house we'll be moving into.
Have a good weekend everyone, and go Bucks! It'll be a very tough one up in Madison tomorrow!
So I wake up Tuesday morning with a knock on my bedroom door. It was my roommate informing me that our rental agency just called him to tell him that the owner of the house we're renting let the damn thing go to foreclosure!
I've heard of this happening a little bit, but until researching it the past couple of days, I had NO idea how common it is becoming out here! So I do feel a bit foolish for not seeing this coming considering there are web sites out there to help forecast trouble like this!
Fortunately, we got this call as a little "heads-up" and the auction does not occur until next week. That has given us a little more time than most in our situation.
The two options that we could take to insure that this doesn't happen to us again are to try to rent an apartment or just buy a house. Buying is definitely NOT in my radar for various reasons. I've also come to the conclusion that apartments are simply a HUGE rip-off, especially here in Vegas. Invariably, I'm stuck living next to, or below, jackasses that crank up their music! The place Mikey and I were in last year was TINY and I was paying MORE than what I've been paying for this house!
So buying and renting apartments are out. My roommates and I are still convinced that finding another rental house is the way to go. However, my question for anyone on the board is how to pick a rental house with much less chance that it'll go into foreclosure while we're in it.
This time around, we're using two web sites to screen the potential houses we have been looking at. In fact, that info on these sites is just as important as the rent being within our price range. We've been nixing potential places that have been sold within the past few years at what would seem inflated prices. For example, the moron who owns our current house paid a freakin' $400,000 for this place. Sure, its a nice place, but $400,000?!?!?!?!? Uh, I don't think so!!! He deserves to take a complete bath on this place!
The two sites we're using are:
rentalforeclosures.com and accessclarkcounty.com/assessor/
The first site simply lets us know if a house is in default/foreclosure. Our current house obviously showed up on the list. More shockingly though, some houses up for rent on some of our rental searches ALSO SHOWED UP! That's freakin' ridiculous! Anyone renting those out will be on the street quicker than us!
The second site is the web site for the Clark County Assessor. It gives all the information on a house including who owns it, when they bought it, how much they paid for it, etc. One house that we've already viewed and applied for is in Southern Highlands, is 3100 sq ft., and was purchased in 2003 for what appears to be a very reasonable $233,000. I know that doesn't clinch it 100% that it won't have problems, but seems WAY safer than renting a place like we're in now.
Seeing as how we basically need to be completely moved by the end of next week, the question might be a little moot and late. But, besides those two web sites to screen places, is there anything else we could be doing to help insure renting a house that won't be having problems before our lease is up?
Friday, October 3, 2008
Foreclosed Upon
Posted by Rob at 3:09 PM
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8 comments:
Well, whoever the new purchaser at auction is, you might as well bid for it yourself. Anyway, often having the house occupied is better for the bank than not having it occupied so they might let you stay for awhile. Prices are so low now... go in with a REALLY LOWBALL bid. You might get it!
Correction for fleastiff (sorry have to do it)...the moronic government just passing the bailout bid basically means anything at auction will more than likely be bid at whats owed by the existing lender...thereby letting the lender sell that asset at maximum price to basically us(tax payer) for the inflated price. There will more than likely not be any great deals out there with any upcoming auctions, until it transfers hands to the lender who acquired the property or our government owns it. I have already seen this happening here in Ohio and would think it will be the same across the country.
As far as preventing this from happening in the future. You can always ask but may not get it....but if you are taking a risk renting ....you may be able to see the owners rental history much like they can see your credit history prior to renting. Ask as many questions as you can from multiple sources since right now almost everyone in the real estate business needs a swift kick and a forced installation of some ethics.
So if I'm hearing Tony correctly, the idiot who bought this house and forced us to move again after only 3 months will get away without losing money on his default?!?!?! Ugh, I can't stand to think about that!
Also, thanks goes out to "grtwithntr" on T2V for sending me the link to...
www.realtytrac.com
That's the best web site I've seen so far to find out if a house is late on its payments. It IS a pay site, but the free 7-day trial is useful and it appears that the cancellation process prior to being charged is pretty straight-forward.
Using that site, I've discovered when and where the auction for this place is. 10am this Monday at 930 S. 4th St., Las Vegas. Since I have Monday off, I just might drive down there and find out who will own this place.
Keep us updated on what happens Rob. this just sucks!
Perhaps this is over-simplification, isn't a revenue generating property more valuable than one that is not?
Good luck, hope you end up in a better setting
It would seem logical that revenue generating property is more valuable. But if that were true then rents would be higher due to the cost to purchase rentals being more expensive. The average rent for a location usually dictates what a property sells for as a rental as compared to a primary residence. Usually a rental house is less valuable since you want a 10% return on your money...in Robs example to be profitable at a 400,000 price the rent would have to be 4000 a month. Probably not what was being paid. If rent is $2000 the property should be worth around 200,000. Of course this is a general approach. To a bank a primary property is more valuable. When things start going sour the revenue property is historically the one people stop paying on first rather than the one they are living in as their own property. Plus if you have limited cash for improvements the first house you improve on is your own. Most people take care of themselves first then whats left over goes to others. Of course there are exceptions but most of us are not Mother Theresa.
Rob, don't know if you are doing Myles Pizza on your trip east or not. If you do let me know!!!
Gary, a meal in Bowling IS in the plans at some point on Friday. My friends are driving up from Columbus on Friday and meeting us in Bowling Green before heading up to Michigan. I was initially thinking a nice big fat juicy Trotters steak would be a good idea, but I'm not sure when we'd be in BG and Trotters is only open for dinner if I recall. I'll let you know.
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