Renters Have New Rights in Foreclosure
91"What you don't know may be hazardous to your financial health"
May 20, 2009 is a date to remember for millions of American home renters faced with eviction through no fault of their own. PROTECTING TENANTS at FORECLOSURE ACT of 2009 (S. 896) was signed into law by President Obama, effective immediately and not expiring until December 31, 2012.
http://www.consumer-action.org/alerts/articles/new_renters_rights_in_foreclosure/
It brought a sigh of relief to this renter - and not a moment too soon. Three years ago I signed a four year lease and moved 26,000 pounds of furnishings into a lovely two story home. It is where I live and where I work. I have never missed, nor been late, on a single rental payment.
BUT, unbeknownst to me, my dear landlords stopped paying the mortgage on the home I rent from them some time ago. (Ten months ago to my best calculation.) They were using my monthly rental payments for their own personal expenses.
Most of you by now have heard of at least one person/family in the same situation. Notices are filed. Security deposits are lost. A costly and inconvenient move looms dark on the horizon. Marriages fall apart. Jobs are lost. Bankruptcies are filed. Kids are scared. Pets are abandoned. Medical expenses soar.
These are good people, not deadbeats. They work hard and pay their bills.
More notices hammered into the front door. In six different languages. Legal notices appear in the newspaper. Neighbors panic. Neighborhood values plummet. The landlord, too embarrassed to tell the truth, often blames the renter. The renter is then blamed and shunned. Kids get depressed. The goldfish gets depressed. The lawn dies. Everyone gets depressed.
The long road to finding answers/solutions begins. Hours on the phone lost in a maze of telephone trees. No real person to be found at any of two dozen different phone numbers. Press 1. Press 1 again. Press 2. Press 2 again. Back to 1.
On the Internet for hours searching for any hint of answers to a long list of questions:
1. What are my rights as a renter?
2. Do I even have any rights as a renter once the house I occupy has been foreclosed upon?
3. What happens to my security deposit?
4. How much notice will I get before I have to vacate the home I rent?
5. Will the Sheriff put my belongings out on the curb?
6. Will being served an Unlawful Detainer (Eviction Notice) hurt my credit rating?
7. Who will actually own the home I rent after the foreclosure?
8. Do I have to pay rent to anyone during this transition?
9. I can't afford to take off from work at this time; how can I move?
10. Does the California Moratorium on foreclosures include rentals?
In short, PROTECTING TENANTS at FORECLOSURE ACT of 2009 (S. 896) provides more protection to renters than any lender wants you to know. www.consumer-action.org
If you have no current lease, or are on month-to-month tenancy, you are entitled by law to receive 90-days written notice after the home your rent is foreclosed upon. Sometimes it takes 7-10 days after the foreclosure to receive a 90-day notice, sometimes it can take 30-180 days to receive a 90-day notice. YOU ARE STILL OBLIGATED FOR THE RENT during this time.
If you have a current lease, you are entitled by law to remain in your home until the lease expires. YOU ARE STILL OBLIGATED FOR THE RENT during this time.
In both cases, it may take some time for you to be informed as to where/whom you pay your rental amount. DO NOT pay the rent to the first person who comes knocking at your door. Once you are notified, check with your County Recorder to verify.
My landlords are not bad people. They are good people who made some bad decisions about the same time the financial markets fell apart. They owe $1,150,000 on a home worth about $600,000. There is no way for them to bridge that gap.
They should however, have told me of their intentions to give my home back to the bank.
More to follow.
Thank You for the Wonderful HubPages Community Love and Support!!
Earth Angel is back and flying fearlessly!! (More like kicking!!) To those of you who have emailed and asked of my whereabouts - the above answers it all!! The home I rent is being foreclosed upon this next Wednesday, July 15th!! It will be auctioned off on the Courthouse steps!! I have not had an extra moment for months!! It took me so long to track down the laws governing renters in foreclosure homes!! A new law, just passed May 20, allows me to breathe a sigh of relief!! (For the moment, anyway!!) I am soooooooooooooo happy to be back with all of you in the Awesome HubPages Community!!
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Earth Angel, it's a wonderful thing Obama has done for renters. There was absolutely no reason for them to be penalized because the owners didn't do what they should have. Rated up and useful.
Blessings to you James!
I'm sorry that you, or someone you know, is having to face the nightmare of being a Tenant in a house that is, or has been foreclosed upon!
NO, is the short answer! Unfortunately, for 99% of all cases like this, is it the complete answer!
There are however, some rare exceptions!
Plus, with a little planning on the part of the Tenant, the Security Deposit doesn't have to be a complete loss!
Note that there are some technical differences between a Tenant/Landlord relationship and a Lessee/Lessor relationship ~ as well as if it is a house or an apartment building that is being foreclosed upon!
The rare exception is when a Tenant/Lessee has a current and valid lease on the property at the time of the foreclosure, is living there and hasn't broken any lease conditions, and the house is transferred directly from the old owner to a new owner as an investment, usually on the Courthouse steps! Then the Security Deposit and all obligations go with the property and the Tenant/Lessee is entitled to their Security Deposit!
If the above is in place but the Lender takes title, they will try to wipe out the security deposit, but not always! After the May 2009 Protecting Tenants at Foreclosure Act was passed, Lenders are now required by law to return deposits! Many hope Tenants/Lessees don't know about it!
Sometimes the Lenders will use a "Cash for Keys" program instead, as the return of the Security Deposit comes out of the Lender's pocket whereas the Cash for Keys comes out of the Government's (our) pocket!
In a more perfect world, no home is foreclosed upon without months and months of notice, including postings on the front door! No Tenant/Lessee should ever be "surprised" by an impending foreclosure! In a more perfect world!
If someone learns the house they have a valid lease upon (as opposed to a month to month tenancy) is about to go into foreclosure the first course of action is to contact their landlord! Every now and then I hear of landlords feeling awful about the circumstances and returning the security deposit prior to foreclosure!
If a security deposit is not forthcoming, then stop paying the lease amount! Since the security deposit in California is generally equal to one month's rent (plus pet deposit, if any) there is usually time for the Tenant/Lessee to get a month free before the actual foreclosure.
Note it is illegal in California to use the Security Deposit as rent, yet it has become common practice for Tenants/Lessees in these situations!
I hope some of the above helps!? Please feel free to leave more of the specifics and I can be of more service to you!
Home or apartment?
Lease or month-to-month rental agreement?
Been there over a year or under a year?
Already foreclosed upon or heading in that direction?
Lender involved or someone bought a short-sale?
Again, I am sorry that you or someone you know is having to go through this! I send my warmest thoughts for sound and fair resolution! I am always at your service James!
Blessings, Earth Angel!
James sent Earth Angel this question on 05.16.11:
"Earth Angel...Living in California. Do tenants get their deposits back after foreclosure? After the landlord changes to a new owner? Thanks, James"
Well at least your background in real estate and knowledge of the law can help other renters :). Knowledge is power.
Thank You Sweetie Pie for your insightful comments!
You are soooooooo right; renting from a large professionally managed apartment complex owner/partnership does lessen the risk the property will be lost in foreclosure! And, if by chance it does go into foreclosure, because the lender knows it is an income producing investment property, they have better ways of dealing with the exisiting tenants!
I can sooooooooooo relate to your sister's situation as I find myself in the same right now!
Having moved out of the house that was foreclosed upon I moved into a house that is riddled with toxic mold! The landlords, who only have a couple of rentals, have no concept of the laws or property management!
The landlords knew all about the mold, have had the tests done, admitted their guilt numerous times in writing and said they would pay to have my things decontaminated and my things moved!
Once the bids for the costs came in, they changed their minds and have been trying to wiggle out of any responsibility since!
Thank you again for your great comments!
Blessings to you and yours this Holiday Season!!
Earth Angel!
This is a good topic, but another reason I feel comfortable renting an apartment at a larger complex that has a good track record. The company that owns our apartment complex also owns a few town homes communities through out Southern California, so there are options for people that want a lager home, but more security of renting from a stable landlord. Also, I never liked the idea of renting from one landlord with just one or two houses because I have seen how they act about doing repairs at times. My sister moved into a house that had a lot of water damage unbeknown to her, and the landlords were trying to pretend this was not the case. She finally moved out of that place.
Blessings to you Support Med for dropping by and commenting!! Yes, indeed, so many of us are in times of great challenge!!
Alas, no, I was not destined to stay in that house forever; I was more interested in preserving my legal rights - and not letting the "Big Bank" intimidate me - or force me to spend thousands on a move I did not cause nor invite!!
I have since moved!! I wish I could say the story has a happy ending, but alas, not at the moment!! Another story for another time!!
It is ironic that you would comment now!! Just yesterday I was downtown near the courthouse and while waiting to cross the street noticed a semi-familar man!! It was the attorney for the "Big Bank" who had made my life a living nightmare!!
He kept looking over his shoulder nervously, like a hit man might jump out of the bushes or something!!
I inquired if he was okay and he turned to me and asked, "Didn't I get you thrown out of a place a while back??"
"No, actually I think you may have been the attorney representing the "Big Bank" who lost when they tried to go after me!"
"That's right!" he said, "I don't pay much attention to details!! The banks pay me to show up on their behalf, I don't usually care one way or another!"
"You do this for a living??"
"Yeah, pays real well!! I collect my $200 for the day and move on!"
"How do you feel about doing such awful things to people who don't deserve it??"
"Don't care!! Never cared!! The 'Big Banks' hire my license for a few hours and we're done! The cookie crumbs fall where they may!"
"Interesting choice of careers . . . "
"I would love to take you out to dinner or even for just a drink!! I was so mean to you in court that taking you out is the least I can do! Plus, you are really one hot chick for being your forties!!"
"I am in my fifties and a Minister - you know that from our case!!"
"Smokin' hot I tell you - have dinner with me??"
The light changed and I went the other way!!
Blessings always, Earth Angel!!
MY GREAT GOODNESS, MERCY!!! You are obviously determined to make this your home (I don't think I could have dealt with it.) I do hope with all of my might that all will soon be well with you and your fur babies. You should be granted ownership after all you put into it. I am almost at a loss for words here. You are definitely in a season of 'challenge.' Hope all is conquered soon. Peace.
Blessings to you Support Med!!
Thank you for your thoughtful comments!! I am soooooooo glad you and your kids found a home that you like so well three years have passed already!!
Alas, the beautiful home I moved into a few months back has been riddled with appliance problems, flooding and really non-stop deferred maintenance issues!!
It looked beautiful when I first saw it, in need of a little TLC/cleaning but nothing major and I was happy to do it because I fell in love with my new landlords!! It even has a small backyard that is fenced for my fur-family!! (My last place had a huge yard but it wasn't fenced!)
The hot water heater went out right away and I was five weeks without hot water!!
I hadn't been here a week when the toilets started over flowing!! Out of the blue and long after being flushed!! Clear water only, thank goodness, but hours to clean up each time as it ran down hallways and under carpets!! I own a wet/dry vac so I was able to handle the problem immediately!!
Then it became clear that no two things could be used in the house at one time!! Couldn't flush the toilet right before stepping into the shower!!?? Couldn't flush the toilet if the dishwasher was running!!
I'm single living alone; I can't imagine a family living here!!
Then, it turns out, the dishwasher has had a slow leak for years, dripping water behind all the cabinets, appliances, walls, etc.!! It finally was leaking harder, flooding two rooms, including the dining room under my French Louis the 17th antique hutch!
All cabinets, appliances, carpets, pads and wall board had to be removed!! There we discoverd toxic black mold!! All has to be remediated and we are still in the process!! I am soooooooooooo worried about my health and that of my fur-angels!!
As it turns out, this house was previously rented by pot-farmers; a 'small' detail my landlords failed to disclose!! The entire insides of the house and garage were used for sophisticated marijuana growth and production!
The pot farmers had sealed off all the windows and installed a more powerful power panel!! Their electricity bills alone were running $16,000 per month!! That is how the police got onto to them; the bills were never challenged as incorrect but always paid on time!!
So the pot farmers fled leaving behind a mess the likes of which the landlords had never seen!! It took months and thousands of dollars to 'clean' the place up!! I learned this, after the fact!!
So that is why the plumbing, the electrical, etc. are not working properly!! I paid over $15,000 to the movers to move me here (only 8 miles from my last place), paid over $2,000 already to my own handyman to remedy some of the deferred maintenance and have paid over $11,000 in rent (so far)for a home that was toxic from day one!! Not to mention the costs to my health (and fur-family), the furniture, clothing, artwork, bedding, pillows, etc. that was lost in the floods! I work from home and the loss of productivity (around $5,000 a month) is more than I can bear!!
This story is still unfolding!! I think the landlords are really good people, and I don't think this is all their fault, but it is their total responsibility!!
I will keep you posted!!
As for your comments above, yes, the rent must still be paid to the landlord during the foreclosure process; as long as the landlord is still on title as the owner!
Once title has been removed from the landlord/owner, if there is still a valid lease in place, the rent goes to the lender!! The good news is, the lender then must also honor your security deposit!! (They try to tell you not, but recent law and court cases have proven that if a lender wants to collect rent from a tenant, then they must pay back the security deposit as well!!)
In my case, the landlord was also filing bankruptcy and moved 500 miles away, changed his name, and went into hiding!! There was no way to get my $7,500 security deposit back, so it was applied to the rent!!
In California Real Estate Law, the security deposit is NOT to be used for rent!! The landlord/owner was not around to dispute using my security deposit as rent, so I kept a careful and fair accounting!!
Even though I was vacating prior to my having to leave under my lease, I still left the place spotless!! And took tons of photos as proof before giving the keys to the lender's broker!!)
I do hope you were able to get your security deposit back???
Also in California, there is a Keys for Cash program that helps tenants with financial resouces so they can move!! I had a valid long-term lease in place with 15+ months to go so my situation was a bit different!
After all the problems I had in my last place, you can imagine how thorough I was in checking out the new place!! I noticed a few deferred maintenance issues and asked my 'potential' landlords at the time about them!! All were dismissed as 'not a problem,' or, 'we will take care of that!!'
Never once did they mention this used to be a 'pot house!!' We were all hiking together and one of the landlord's friends laughing inquired as to what I thought when I found out about the 'pot house!!??'
Then all the deferred maintenance and internal plumbing, electrical, mold problems, security issues (oh yes, someone tried to break in once, and successfully broke in a couple of days ago!!)began to make more sense!!
An analogy that comes to mind is that of buying a used auto!! I was shown a 13 year old model that had its 'cosmetics' somewhat addressed but not the engine!
So I am trying to figure out the spiritual lesson behind all this!! I am happy to be of service as the 'canary in the coal mine' if that be Spirit's calling!! I may have sounded the alarm and prevented horrible catastrophe to someone else - can you imagine if you lived here and the place caught on fire while your children were asleep!!?? Or maybe I prevented certain financial ruin for the nice landlords who would have been held accountable!!
It is a wake up call for us all!! I teach spiritual awakening and spend large chunks of my day in mediation and prayer! Or at least I did before all this!!??
My intention is a home that provides safety, comfort, support, privacy, and quiet for myself and fur-family!!
Thanks again for dropping by!! It's been a crazy ride since I first published this Hub!!
Blessings always, Earth Angel!!
The title of your hub caught my attention as I was scrolling through hubpages.
Glad you are getting settled into your new place. When a home I rented for 7 years was being foreclosed on I found out early on and called legal-aid and they told me what to expect. So I decided since I would have to move anyways, rather than to continue to pay rent to a landlord who no longer cared (yes, you do have to continue to pay rent for a home in foreclosure), I decided to move as quickly as I can. So, even in foreclosure he got his rent, I quickly found me and my children a new place to rent, and we're outta there. Been here for 3 years now. Hope things keep getting better and better for you. Voted/rated.
It's good to know that a renter will have some extra time to find a new place in the event they are faced with foreclosure, even after the home is foreclosed on, that's the good part. Thanks for this info.
Thank you so much Dallas93444!!
There is sooooooooooo much information floating around in cyberspace that is false and misleading!! I try very hard to make sure my information is sound and accurate!! Your compliment makes my day!! Thank you!
Blessings always, Earth Angel!!
Great comments and hub. I too was a real estate broker in Arizona and California. You gave sound advice! Best wishes!
Thank you Mulberry1!!
Yes, it was a really crazy ride!! Expensive, painful and inconvenient!!
But we are in the process of getting settled in our new place and loving each minute!!
Thank you for dropping by!!
Blessings always, Earth Angel!!
This was eye opening. I had never considered all of the issues a renter might face if a landlord went in to foreclosure. Educational!
Hello Stressed Out!!
My apologies for not seeing your comment earlier!! I trust/hope/pray that you situation has resolved itself to your delighted satisfaction!!??
In short, to answer your questions above, which you may already received answers to:
Since the home you are renting has not yet been foreclosed upon, the same exact terms and conditions in your current lease still apply!! The management company is offering to "modify" your lease in exchange for a reduction in rent; you do not have to accept!!
If your current lease has a clause in it for selling/marketing/showing, which is very standard, then what ever the clause says is what you must abide by!! When I sign a lease, I remove this clause!!
I also insert that I need 48 hours notice (in the U.S. it's 24 hours) and I need to be present!!
The only over-riding issue to these stipulations is "in case of emergency!!" This gives the landlord/management company the right to enter your place without notice at all, citing "it was an emergency - we thought we smelled gas!!"
I also insert "absolutely no selling/marketing/showing while I am in possession!!" For me, this is because I have indoor-only pets (all approved), and copyrighted material and expensive things in my home!!
If you haven't put those clauses in your current lease, put it in your next one!!
Yes, you are still entitled to your full security deposit assumming you leave the place as you found it when you moved in!! Lenders/rental managers would like you to believe otherwise!!
Whoever buys your current place is subject to your lease!! If it is a person or a lender, either must abide by your lease!!
Most leases also have a 90-day out clause!! Again, I remove this!!
If a lender ultimately winds up with your place, it is hard to get both security deposit AND moving expenses - but certainly worth a try!!
The much-touted Keys for Cash Program, at least in California gives an average of $1,500!! That's another long story!!
Again, I hope that by now all has resolved itself!! Besides the inconvenience and tons of money, I tried to stay focused on the spiritual message I was receiving!! Deep in my heart I knew it was time for me to begin a new chapter in my life!!
If you are still in need of assistance, please email again!!
Blessings always, Earth Angel!!
Hello Again RA!! Thanks for dropping by!!
It's crazy out there!! I am just now beginning to feel normal again after having to move because my landlord's lost the home I leased to foreclosure!!
It has taken almost a year and over ten thousand dollars to deal with something I had nothing to do with!! I never missed a rent payment!
Thank you for keeping the subject new and alive for those facing the same dragon!!
Blessings always, Earth Angel!!
I am really glad to hear about the rights of renters because things are really getting bad and so many people will be displaced.
Hi earth angel,
Im renting a condo unit and just received notice that the owner defaulted and now the condo will be listed for a short sale as soon as possible. the management company that handles the rent (for me to pay/for owner to collect) i'm renting from has given me the option to stay in the unit while the bank shows it potential buyers for "less rent". Is this legal? i'm not looking for a new place to move into because I do not want people having access to my home wthout me being there...am i entitled to anything as a renter? moving costs? security deposit? i am so stressed out i do not know anything about this subject. please help. thank you.
Great hub, Earth Angel! The same thing happened to me about ten years ago. I had great landlords as well! As a matter of fact they contacted me to let and said they were letting the condo foreclose. To make a long story short, I was able to save my rent money for a down payment and bought the condo myself for about half its original price.:)
very nice hub thnaks
Thank you Earth Angel, for such an exhaustive reply. "Owning vs Renting" is indeed a difficult choice, and so many factors go into it, not the least of them being luck. It was just a thought that had come to my mind and hence the query. You have worked in this field and are knowledgeable and wise on these matters. I wish you good luck and perfect timing in whatever decisions and actions you take.
About knowing anyone in a similar situation. Not quite. But, I am reminded of two good friends, both my course mates and veterans from the Indian Army, who emigrated to the US. They were in leased apartments in LA and had been contemplating buying their own homes. It was not because of foreclosures, but because of falling prices and the need for better accommodation. They were able to find what they and their families liked, and at affordable prices, so they sort of 'took the leap.'
From all the information that they shared, they both seem to have moved to better accommodation and locations - one has relocated to San Francisco - that suit their lifestyles and also seem to make financial sense. How it all turns out in the future will probably depend on the price movements in the long term, and that only time will tell...
Blessings to you Jaspal!!
Thank you for the thoughtful questions!!
The California real estate market is a bit more manic than many other parts of the country, or world for that matter!!
The lovely house I live in, at the top of the market, reached a high appraisal value of $1,450,000!! At that time I paid $3,000 per month in rent!! The owners, however, were paying $6,000 per month in mortgage and taxes!!
I questioned the owners about the huge negative cash flow prior to my leasing their!! They felt that the $36,000+ loss per year would easily be made up in appreciation!! Which at the time was skyrocketing!!
And they were right, for a while!!
Then the market began to fall - crash really!! Housing prices plummeted!! Rents followed as so many people lost their jobs!! My rent dropped to $2,500, then $2,000, then $1,500!!
Unbeknownst to me, the owners/landlords had refinanced everything they owned, houses, businesses, cars, etc. to the max and were drowning in debt!! They lost everything, one by one, in foreclosure!!
On the Courthouse steps, the opening bid required for my place was only $637,000!! Less than half of what it was a year ago!! And there were zero bidders!!
I have considered buying this home many times! Mostly because the time, energy and money involved in moving again is substantial!! But the house has a funny layout, is on a busy street, has zero yard, sits within a few feet of five other homes and is settling a bit too much for my comfort!!
I do however, have my eyes on a couple of other homes!! Anyone interested in buying should seriously consider the benefits of this depressed market!! Plus, as you said, the wonderful tax credit!!
Having said that, there was a great article in the Wall Street Journal about two months ago that looked into the "owning vs. renting" option!! Their findings are contradictory to my belief!! They projected that over the next 10 years, those who rented instead of owned would be 30% wealthier!!
With my background in real estate, people always thought it nuts that I leased!! But the best way to get to know a property is to lease it!!
Yes, I agree with you!! People who LOVE the properties they rent/lease, properties that have been lost by their landlords in foreclosure, should look into the possibility of purchashing them!!
It's not an easy process, only because the lenders are not set up to work with lessesses/renters, but could well be worth the effort!! But I would caution not to skip any of the steps as in a regular home purchase; all the due diligence, inspections, etc.!!
Thanks again for dropping by Jaspal!! I appreciate your interest!! Do you know of anyone in this situation??
Blessings always, Earth Angel!!
Wonderful hub Earth Angel - explains the travails of a lease holder of a property being foreclosed so graphically. I am happy for you that this new law has been passed.
I don't want to be too nosey or offer unwanted suggestions, but I do wonder what is the sort of rent you are paying viz-a-viz the present value of the property and the monthly mortgage payment for a new owner. Do you think some lease holders might find it to their advantage - especially with the tax breaks and the incentive having been thrown in - to bid for the house they occupy?
Is that allowed under the new law?
Thank you again Prasetio30!!
It's been a wild ride!! But it is always good for us to remember that these are just "circumstances" unpleasant as they may be - they are not our lives!!
Blessings always, Earth Angel!!
thanks for share. Great topic.
Greetings Eric!!
Thanks for the comments and insights from Australia!! No, you are not being negative!! With age and experience, hopefully comes wisdom!!
I too, did the same thing when I was younger!! Bought my first home when I was 18 years old!! I was just fortunate that I was a bit more conservative than most and hit the market just right!!
Here in the US too, the prices are being artificially stabilized!! Even though prices are down about 40-50%!! The government is offering a host of tax benefits, an $8,000 tax credit for new buyers, and even more complicated (more toxic) sub-prime mortgages!!
It saddens me that we haven't learned our lesson yet!!?? I just hope other countries around the world notice that we haven't changed much and refuse to invest until we clean up our acts!!
Don't get me wrong, I am quite optimistic about the future!! I am a huge Obama fan and think he is doing an amazing job under a mountain of pressure!! It just seems to me that the US economy, like our auto industry, is soooooooooooooo resistant to change that it takes total collapse to get any substantive attention!!
On a more positive note, how do you like living in Australia?? It's been my long-term dream to snorkel the Great Barrier Reef!!?? (It breaks my heart the reef coral are dying at such a rapid rate!! Again, are we going to wake up in time??) (How quickly I moved from positive to negative!!) Tell me you adn your family snorkel it all the time and that's it wonderful!!
Thanks again for your insightful comments about real estate!!
I will keep all posted as to how the foreclosure process goes this Wednesday!!
Blessings always, Earth Angel!!
Thanks for taking the time to share that info, and make such an honest assessment.
Here in Australia the government is keeping the real estate market from finding its true level by pumping money into subsidies for first home buyers.
Around 30% of property sales are made to younger people who just don't understand that the days of ever increasing property prices are over.
They are committing themselves to huge loans that they can barely meet now with two incomes, without realising the effect that future plans for children, upcoming job cuts and interest rate rises will have on them.
Or perhaps I'm being too negative. We'll see.
cheers, Eric G.
Thank you Eric!!
Before becoming a Spiritual Activist I was a real estate broker with my own firm and three locations selling over $350,000,000 in commercial real estate throughout the Western United States!!
I agree with you!! Especially with California (the 7th largest economy in the world) NOT being able to balance its budget!! Again!!
In 1993 California was not able to balance its budget and it took years to recover!!
What distresses me is the way we have taken so many others down with us!! Not just the US but around the world!! Yet, I hear very little in the way of responsibility!!
Clinton said something to the affect: "We (the US) may be responsible for plunging the world into this economic disaster but we will be the ones who also come up with the solutions to pull everyone out!!"
Somehow that argument did not rationalize any less responsibility in my mind!!
From a real estate perspective, the prices in the US (and California more specifically) have not made any sense for years!! Now that there are so many homes in foreclosure, the foreclosed prices "make the market!!"
In my neighborhood, the prices hit a high of $1,450,000!! 3B/2.5B pleasant house!! 2 car garage, zero back yard!! Certainly NOT a mansion by an stretch of the imagination! Two houses in foreclosure sold for around $600,000 each!! Buyers are not going to pay $800,000 or up when the market/expectation is now set much lower!!
AND there is soooooooooooooooooo much inventory!! Three hundred times the number of houses for sale than potential buyers!! It does not take a rocket scientist to realize it will take years for this all to even out!!
Most of the investors I know have been buying land!! Even that is tricky for the uninitiated!!
The Wall Street Journal had an article a while back that addressed the issue of renting vs. buying!! The conclusion?? Renters will be 30%+ financially better off over the next ten years than buyers in similar circumstances!!
I still believe in the value of real estate!! But just like stocks and bonds, the values go up and down!! The days/years of just being able to buy anything because it will invariably go "up" are long gone!!
Managing one's assets is A LOT OF WORK!! Turning the process over to someone else is just asking for trouble!! Does "Bernie" ring a bell??
When did we all stop being "students" of Life Lessons!!??
When did we stop "thinking" for ourselves??
When did we stop questioning (respectfully) everything and everyone??
The "American Dream" is a wonderful ideal!! But it really needs an updated definition!!
If the American Dream means owning your own home (which in truth is owned by the lender having been mortgaged to the rafters) and working a zillion hours to pay for it (so there is no time for reflection) causing detachment from loved ones - I think I'll pass!!
I was a little girl in SF during the Summer of Love so I missed a lot of it!! I am however ready for another wave of reevaluation of what's important in life!! Bricks and mortar doesn't rank very high on my priority list!!
Thank you again for your comments Eric!! I agree with you!! "We haven't seen the bottom yet!!" (Only a temporary plateau!!)
Blessings always, Earth Angel!!
Thank you William!!
Yes, I agree!! We must remain vigilant!! We must continue to heighten our awareness!! And ask questions!! Lots of questions!!
Personal responsibility is more important now than ever!! A rigorous self-inventory, while challenging at times, is worth more gold than Fort Knox!!
Thank you William!! It is good to dialog with you again!!
Blessings always, Earth Angel!!
That's great info for people in a similar situaiton.
Wonderful work, Earth Angel.
I've drawn similar conclusions about the future of housing prices.
I don't think we've seen the lowest prices yet - not by a long shot.
It's good of you, Earth Angel, to help get the word out to those who remain uninformed. I, too, believe that people are innately good. However, I am also aware that many people cast a blind eye toward those in need while rationalizing their own selfish views. For that reason, we must remain vigilant.
Dearest William,
Thank you so much for the kind comments and welcome back!! It's good to be back!!
I've never been one for much government intervention!! I have always believed in a free and open marketplace!! That all people are basically good and will do the right thing once they think it through!!
The problem is when no one thinks it through!! Or, worse, only thinks it through for how it affects them!!
I am a big Obama fan!! He seems to think things through and consider all sides as best he can!!
With the banks, I really believed that once the toxic lending practices were exposed, the lenders would clean up their acts!! Instead, they have one hand out to the government AND the other taking even more advantage of a critical situation! They just don't seem to know how to operate any differently!!??
How much greed is enough?? If people at all levels cannot be self-regulating, then the government must step in!! I was/am hoping that people would/will begin to see the financial-only bottom line is too short-sighted!!
In my case, this isn't just a matter of inconvenience!! I'm over $60,000 in the hole already from something I had nothing to do with nor did I create!!
I know lots of people who have lost much more than that in this market!! But I chose the "safe" route!! I didn't believe in the real estate bubble and thought it would have collapsed two years earlier!! I didn't invest in the stock market; I invested in myself and my publishing company!! I rented instead!!
So imagine my surprise when the lender who holds both the first and second trust deeds on this home hired a Sheriff to tell me I needed to leave immediately!!
The lender and the Sheriff BOTH knew full well of my rights as a tenant!! What they were counting on was that I didn't know!!
That's why I published this Hub so quickly and without all the frills!! I know there is someone else out there right this minute packing boxes as quickly as possible because they don't know they have rights either!!
I live in a lovely gated community of million dollar homes!! Two other families on my street left within 48 hours in a panic when the Sheriff told them to leave!! One man had a heart condition and it nearly killed him!! It just didn't seem right to me according to what I know of California real estate law!! Yet none of us thought to question the Sheriff!!??
Two attorneys told me the same; move as quickly as possible!! I was packing boxes like crazy!! The third attorney was more up to date on tenant law and gave me the Internet links to check it out!!
I stopped packing boxes!! I posted a copy of the law on my front door!! I went back to conducting my business!! AND spreading the word so others don't have to suffer through the same misinformation!!
Thank you again, William, for dropping by!! I have much to catch up on here at HubPages!! I LOVE all the upgrades!
Blessings to you always, Earth Angel!!
I'm delighted to see you back here at HubPages, Earth Angel, and I'm glad your rental fiasco has eased. You've been missed. Your experience would have been much different if Obama had not been elected. Thank you, America.
Earth Angel Hub Author 11 months ago
Thank you KoffeeKlatch Gals!
I agree! Whom ever is President gets negative press no matter what they do! I support Obama!
Yes, this law helped thousands of renters! It would have helped thousands more but it remained, and still remains a bit unknown!
Thank you so much for the comments and the votes!
Blessings to you and yours always, Earth Angel!