08-24-2011, 09:27 PM
(08-24-2011, 09:18 PM)Nina Wrote: I say Smart. I work for a company that buys and sells foreclosures and handles REO properties. That is actually a very common practice. People also let the home be foreclosed on, let an investor or friend buy it at auction, then lease purchase it back......usually cuts their payments in half. If their credit is already bad anyways it makes good sense.
I think people would be disgusted if they saw the big picture. Investors are buying these houses up sight unseen and then putting Section 8 tenants in them. I am not talking about $400-500 per month "assistance".... the minimum my company gets for any of their houses is $700 and many are up to $1200. Section 8 tenants are almost never good tenants or the kind of neighbors you would want. They lower the property values for the neighborhood even further. More than 1⁄2 the investors we deal with are from overseas.
It might seem your co-worker is taking advantage of the system but the system is already so broken and corrupt. The banks are getting bailouts, the taxpayers are footing the bill for the Section 8 tenants (this is a LIFESTYLE for them, not hard times) and overseas investors are getting rich off our housing crisis. I say she is smart to protect herself however she can.
Yah know, Nina, I totally see your point. At first I though she was a POS for even thinking that, but when she said she still owed almost all of the original 200K and that her house was worth 50K, I realized that her house may NEVER be worth 200K again. Why keep paying on it?
If this is the only way she and her husband can retire on schedule, I just don't blame her. They will make 150K this year if they do this, and will lose that plus interest if they don't.
I now have a completely evil view of real estate. Something isn't right in this country...