I’m in Phoenix, and the major problem I come across is investments gone bad. The majority of my short sales are non-OWNER occupied homes; rentals. Many of these investors decided to accept rent payments but not make the mortgage payment. Obviously the renter is going to find out at some point. Well, I’m not sure if I tell the lender about this? I wouldn’t tell the renter directly but if the homeowner is not honest with his financials and doesn’t include the rent, then I’m thinking I have to either tell the lender or not do the deal. Any comments?
BTW - I’m negotiating the short sale - homeowner is my client
What are your state’s disclosure rules? Also think like you just received a discovery notice and a request for admissions from the client’s attorney because you didn’t disclose a material fact. How would you handle the discovery scenario?
BTW, let’s say you get the house in a short sale. How do you plan on evicting the tenants? Do you plan on evicting the tenants? If they decide to stay, do they have to pay? If so, what law says so? If not, how long are you willing to let them live rent free?
I’m a little confused. You say a majority of your deals are non-occupied homes w/renters. If there are renters, the homes are occupied! How have you handled renters in the previous short sale deals you have closed? Am I correct in assuming the investors accepting rents and not paying mortgage are not the owners? Who is making mortgage payments? I might get some legal advice regarding these investors. Once this info is discovered and disclosed during the short sale process, the only people making money are the lawyers. This deal stinks.