I keep hearing about homeowners OWING more than their home is WORTH and their first or second mortgage need to be adjusted and payments reduced from their agreed amount.....and my question in WHY?
I just wrote a 13 month residential lease for a property and the ENTIRE amount of rent monies owed for the term of the lease is almost $30,000 * there is no appreciation potential, no IRS write-offs and there are LOADS of rules in my lease. My new residents' lifestyle is considerably curtailed as I limit the number of pets at my rental properties AND they can make no alterations * no painting for the nursery, no redecoration, no fence installation, no appliance upgrades.
So.......why is owing MORE than the home is worth any MORE of a lifestyle decision than signing a 13 month lease costing $30,000?
Wallace S. Gibson, CPM * GIBSON MANAGEMENT GROUP, Ltd.
Central Virginia
LandlordWhisperer
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I agree Wallace. Why are we not responsible for everything we sign for saying we will be. Somewhere things got off track and who knows where this will lead.
Randy * I agree that using home appreciation to purchase a new car is stupid; however, thinking that your home is a piggy bank is a re-education process that may take generations
That is a lovely picture. I have seen many people who are in similar situation.
Gita * back looks into fields with horses!!! New residents are moving from Hawaii and rented this home sight-unseen!!
I do think it's a generation issue.....there are many younger people who have drained their equity and spent in on improving their life style.....easy come, easy go....now they are paying the penalty.
Wallace - until I pay my house off I think I am the bank's tenant!
So to speak...
Jay * that is my mentality also...I look forward to paying it off * when my "ship" comes in...otherwise, I am a VERY GOOD tenant.
I have got to agree with you there Wallace. I owe more on my home that I could sell it for, but things won't always be this way. It is still cheaper and offers more freedom than renting.
Tenants do have the benefit of mobility at the end of their lease or early termination with strings!!!
Wallace,
That is a great illustration to make your point. Thanks. :)
Steve