Today I got a strange phone call on one of my short sale listings. This listing is a rental property with along term renter in it and the lease now doesn’t expire again until June 2010. But, the owner is no longer paying the mortgage, they are still collecting rent, but not paying for the house.
Well, today I got a call from a property management company asking me about the property and if they could go see it. I told them it had a RMLS lockbox and if they wanted to see it, feel free. I then asked if the owner was thinking about hiring a property management company to increase the rent on the property. The person said “No, I’m a property manager working on behalf of the bank and they are thinking of foreclosing and to continue renting the property as a way to recover thei rlosses. I was giving them a report to how much they can make over the next 5 years.”
WOW, the bank wants to become a landlord?
I did the math and on that home at $1400 a month, it would take the bank 11.7 years to recover the amount they are still owed by the seller. That wouldn’t include interest, but if I had a choice between just recovering what I lent and a $50,000 loss, I too, would be happy just getting my money back.
So, has anyone else heard of this happening? Are you an owner in a situation where you may need to sell your investment property? Give me a call or drop me an email, I would love to hear your stories or help you sell your investment property.