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June 10, 2011

Comments

Ed

I actually received a phone call from a distressed property owner today, who blames the lender for his woes. Yes, that evil lender must have forced him at gunpoint to take that $200,000 cash out second. He is now facing foreclosure. Amazing!!

John Rowe

The problem with turning bankrupt owners into renters is very regional. According to a WSJ article a couple of days ago, homes in Las Vegas sell for a multiple of six times annual rents. In NYC the multiple is 39; here in Cupertino, CA it is over 30. So the idea makes no sense here. And renting a house to a bankrupt is certain trouble regarding collecting the rent.
Good idea, though. Thank you for all, Dick.

Dick Lepre

John,

I agree but foreclosures are much more of a problem in the places where values are low compared to annual rents. These are the places which are hurting and would benefit by taking those units off the market as sales.

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