I live in a Duplex apt. The owner lives in the other. An investor came by offering to buy because the property is up for auction in 12 days, this is how i found out that he was in default. I found the notice of trustee sale that was filed. I went to as him about his default this morning. He tells me that his “7%” interest rate is too high so he wants to get it modified. And it should be successful.
Questions: Since when is 7% int. too high?
You shouldn’t have to stop paying your mortgage to get it modified, should you?
This is Texas! What are the chances of getting a loan mod. b4 jun 2.?
What do I do?
7% is not necessarily high for an investment property. Perhaps it is a 7% ARM that he wants modified to a fixed before it jumps to 10%. Hopefully, your landlord is just playing the system trying to take advantage of the loan mods and such that everyone else is getting. It sounds as if he just wants a piece of the “bail out”.
You should stay on his good side, and help him out if you can. At the very least, he could give you ample warning before the county comes and puts your stuff out on the street.
Stay on his good side? This is the type of scummy landlord that makes us all look bad. June 2 is around the corner. He hasnt payed his mortgage in several months. You should try to talk to a local tenant advocacy group. Do they have those in TX? Find out your rights. And don’t pay June’s rent until he can show you the document cancelling the trustee sale. In fact you might want to attend the sale. See if it sells to someone or goes back to the bank.
Thanks for replying.
We’ve only been here 5 months. Any repairs I’ve either done them or chipped in financially. We could have both benefited from his loan mod. We could add our rent to our current savings and when our lease is up we could buy a property from him.Supposedly hes’ a RE Broker.
Thanks for Replying!
TX has “TX Rio Grand Legal Aid” just getting in touch with them is difficult, & I am short on time. Nothing Local either.I went to the courts and they don’t have a public legal service. I’m accustomed to that in CA.I will attend the Auction.TX foreclosure process is very quick.The notice was filed 5/11 the Auction is 6/2.Short of spending $$ on Legal manuvering I don’t see how he’s going to get a loan mod. done.
Banks are holding out on foreclosures for a very long time right now. He likely hasn’t paid his mortgage for quite a bit longer than 6 months. I smell a liar. Don’t pay a dime more in rent and don’t expect to get your deposit back. I have the suspicion that he is going to screw you.
The bank will likely own the house at the sale. Especially if he has some judgments and liens on the property. The bank will let you stay there rent free for a minimum of 1 month after the sale. If they end up with it, contact them and let them know what is going on. You likely will get more than a month, rent free so it will be good news if the bank ends up with it. The reason they will let you stay a month for sure is they typically give an owner of a house 30 days to get their stuff out even after the house was taken.
I would ask the landlord for the deposit back now considering the situation that he is putting you through. Then demand it if you have to.
Thank You!
I really Appreciate the reply!
Sign a long term lease just above the minimum market price as soon as you can and hope he’s foreclosed upon. President Obama just signed this:
Law Protects Renters from Foreclosure Evictions
http://news.yahoo.com/s/ap/20090522/ap_on_re_us/us_foreclosures_rentals
As a renter, I know it will help you, but this is about as anti-investor/anti-lender as it gets and will surely be priced into future mortgages.