[Fhgzmftq]

http://www.chicagotribune.com/news/l...,6213711.story

[TheReallyBest]

Good for him.

Won't last long, but I admire him for making the stand.

-=Vel=-

[inchaaruutaa]

Yeh, this won't last long. Going against a judge is a bad decision.

Besides, what policies would he have the banks change?

[Enfonebew]

I presume he'd have them change the policy as Lancer stated above you ... he doesn't object to foreclosing in general, he objects to evicting rent-paying tenants who are being evicted because their property owner is foreclosed on.

Heck, I'd argue that it would be an illegal eviction anyway... the foreclosure shouldn't take precedence over my lease, which is a legal contract every bit as much as the mortgage is. If someone buys the property, my lease stays in force; same should be true for the foreclosure.

[TimoDass]

Maybe other sheriffs will follow his lead.

Dats what de do.

[pavilionnotebook]

Because the liability against the bank is secured and the liability against the leaseholder is not secured.

[esdfsdflast]

Yes, but apparently the rent was lower than the mortgage payment. Otherwise, the property wouldn't have foreclosed.

[Hsmrcahr]

This is one of those times when there's a real choice. A choice between impacting someone's real life, and impacting an institution's wallet or somehow inconveniencing them (the institution), & honestly, I'm inclined to side with the person, not the company.

So the bank doesn't want to be a landlord.....meh. I'm fairly certain (tho we could ask to be sure) that the folks living there don't want to be evicted, and wind up living under a bridge someplace. But we've been so conditioned that the needs of "the company" must come before the needs of Bob and Betty and Fred that we automatically start thinking in terms of "those poor bankers!"

Personally, I think it's a nice change. The Sherriff is showing some humanity. Granted, he'll either be jailed or fired for it, and the people he's trying to protect will, in all probability be evicted anyway, but isn't it a nice change to see people come first?

That's why I gave him a

-=Vel=-

EDIT: Besides, they're willing to pay most, if not all the mortgage in the form of rent. As Lancer points out, their presence in the building provides benefits, not the least of which is at least some money coming in. Plus security of the property, and prolly more besides.
-v.

[incimisiche]

Most people seem to support him based on the internet poll.

[veizKinquiz]

Wait, so the tenants are being evicted even when they payed for the entire month? Isn't that illegal?

[Imampaictjg]

And these aren't ordinary times.

So even if the tenants can't pay 100% of the montly obligation of the note, they ARE showing an intent to pay something.

Something > Nothing, and in these strange times we could all do with a little helping each other out, IMO.

Or hell, just throw 'em to the wolves, kick 'em out, and let the property languish for years in disrepair and lose two thirds of its value, all the while, the owners collect NOTHING for it.

If it was me, I know which I'd prefer, but that's just me and my $0.02.

-=Vel=-

[letittbe]

You could have a manager not reporting some rent that was paid, but that's probably not the case.

[DadaSeeva]

Originally posted by Aeson
Or that they're walking away from a negative equity situation... It would have to be very negative indeed for it to make sense to walk away from a property that is making positive cash, since the mortgage is paying down part of the principal every month.

[bMc8F9ZI]

Yes, in that rare situation, it might make sense to bail on the mortgage.

[29clepayJainync]

Also, a lot of landlords find that they don't like to be landlords. I do many of their tax returns here.

[freediscountplanrrxip]

Originally posted by DanS
Yes, in that rare situation, it might make sense to bail on the mortgage. It's not as rare as you think. The bubble was in large part due to these types of purchases. Everyone wanted to buy investment properties, and the basic scam was 0 down, interest only which banks were more than happy to go for. Buyers weren't counting on rents to make money, they were counting on appreciation (as were the banks). And now they're ****ed.

As you said earlier, 1/6th of the mortgages nationwide are underwater. And given how most of those will be focused in bubble states like CA where prices have dropped by closing in on half across the board, it's underwater by a lot in most cases. And prices are still falling. And the majority of ARMs haven't even hit yet.

[eCw56dzY]

Originally posted by Zkribbler


That's why God created property management companies. Could it be.... Oh I don't know...... SATAN!

[Pipindula]

Originally posted by DanS
Because the banks aren't and don't want to be landlords? Again, WTF?

New owners don't have to respect established leases?

[suilusargaino]

Originally posted by Aeson
You said it was a rare situation... with no qualifications. If you want to say it's a rare situation in Chicago, say that. It was you who set up the hypothetical of a full 50% drop in value and quoted some extreme situations in support of it. Don't blame me.

[tactWeiccaf]

Originally posted by DanS
It was you who set up the hypothetical of a full 50% drop in value and quoted some extreme situations in support of it. Don't blame me. And you called the situation rare, with no qualification. You are admitting it was my hypothetical (also with no specific location) and trying to pretend it was about Chicago now.

It doesn't have to be $400k underwater either for someone to walk away. I used an example (a rather common one in the area I've been living much of the last 8 years) to illustrate the principle. Being underwater on a mortgage is a bad thing for all involved, it means there little to no incentive to make it work.

Even a 11% drop could be enough. Certainly for any small margin purchases, especially with interest only ARMs set to kick in higher payments soon, with no chance to flip the property. Remember these types of purchases were made assuming appreciation. Swapping that expected appreciation for depreciation is essentially doubling the hit to the viability of the investment.

Factor in that a lot of these buyers didn't have great credit to begin with, and it takes even less for them to be willing to take the credit hit...