So yesterday I was busy with a minor fender bender that used up my entire day. It also used up all my patience. And now our car with 22,000 miles has been in a wreck. And Marty is pissy because we were taking that car on our trip next week and now we aren't... Then there are all the subsequent issues around insurance, rental cars and the like.
Why I really told you the above was because yesterday I did not get anything else done. And today when I logged into e-mail, I found a note from Kirby with two pieces of relevant information. 1) it looks like the title issue may be taken care of sooner than later. And that is pretty awesome because 2) the buyers have changed their minds about the home--though they won't share why.
*I am fine, by the way--which is pretty awesome given I was going 65 on the freeway.
Friday, May 27, 2016
Tuesday, May 24, 2016
Henrietta Obolosky is Such a Lovely Name
The Birmingham title issue for this home we are trying to sell has taken a turn for the crazy. Essentially, the buyer is not able to get title insurance on the property because a quit claim deed, which was filed and recorded, has disappeared.
But where was it last seen, you may ask? It would be one of two reasonable places. The first would be with Jefferson County. I know we here who do not live in Alabama do things a bit differently, but when a deed is recorded here, the county makes a copy of it and attaches it to the property address. This is standard procedure. In fact, I recently helped someone file a quit claim and waited patiently as the clerk scanned in the deed and electronically linked it to their site as part of the recording process. But we are only a measly metropolitan area of 6 million, so what do we know?
The other place it would--or should--be is Late Attorney Jon's files. Until this week, I had no idea the deeds were actually handed back after recordation. And if that is the case, it would have been Late Attorney Jon who would have had it. But Legal Owl and Attorney Flip assure me they have combed through Late Attorney Jon's files. It isn't there. And for their box digging I am sure I will be billed some outrageous rate.
Legal Owl's solution (because she is now dragged into this drama) is to sign an affidavit. At first I thought this was a dandy solution. Marty would sign it and we would be closing next week. It turns out Legal Owl really meant that the missing tenant must sign the damn thing.
The tenant in question does not have a name such as "Henrietta Obolosky," or any such name that would be uncommon enough to find. Oh no! Her name is akin to Mary Jones. What is hurting this process is that I have no way to find Mary Jones. I do not have a phone number, forwarding address from 2008 and I don't receive Christmas cards from her after I kicked her deadbeat ass out of my home.
Kirby however, has begun the search for Ms Jones. Today he sent me a Facebook post and asked if that woman was her. I never met her. I don't know what she looks like. Nor do I know what color her skin happens to be. What I did know was that it really isn't Kirby's job to track down former tenants from eight years ago at 11 p.m. on a Tuesday night and send them messages via social media to see if they may or may not have rented to me.
After I got over the initial shock at such kindness he was doing for me (though he is that kind of guy), I told him to offer Ms Jones $50 if she would sign a quit claim deed. After all, what we need is just a notarized signature on a piece of paper with this woman's name on it. So even if it isn't the right Mary Jones, we might be able to clear this up once and for all.
But where was it last seen, you may ask? It would be one of two reasonable places. The first would be with Jefferson County. I know we here who do not live in Alabama do things a bit differently, but when a deed is recorded here, the county makes a copy of it and attaches it to the property address. This is standard procedure. In fact, I recently helped someone file a quit claim and waited patiently as the clerk scanned in the deed and electronically linked it to their site as part of the recording process. But we are only a measly metropolitan area of 6 million, so what do we know?
The other place it would--or should--be is Late Attorney Jon's files. Until this week, I had no idea the deeds were actually handed back after recordation. And if that is the case, it would have been Late Attorney Jon who would have had it. But Legal Owl and Attorney Flip assure me they have combed through Late Attorney Jon's files. It isn't there. And for their box digging I am sure I will be billed some outrageous rate.
Legal Owl's solution (because she is now dragged into this drama) is to sign an affidavit. At first I thought this was a dandy solution. Marty would sign it and we would be closing next week. It turns out Legal Owl really meant that the missing tenant must sign the damn thing.
The tenant in question does not have a name such as "Henrietta Obolosky," or any such name that would be uncommon enough to find. Oh no! Her name is akin to Mary Jones. What is hurting this process is that I have no way to find Mary Jones. I do not have a phone number, forwarding address from 2008 and I don't receive Christmas cards from her after I kicked her deadbeat ass out of my home.
Kirby however, has begun the search for Ms Jones. Today he sent me a Facebook post and asked if that woman was her. I never met her. I don't know what she looks like. Nor do I know what color her skin happens to be. What I did know was that it really isn't Kirby's job to track down former tenants from eight years ago at 11 p.m. on a Tuesday night and send them messages via social media to see if they may or may not have rented to me.
After I got over the initial shock at such kindness he was doing for me (though he is that kind of guy), I told him to offer Ms Jones $50 if she would sign a quit claim deed. After all, what we need is just a notarized signature on a piece of paper with this woman's name on it. So even if it isn't the right Mary Jones, we might be able to clear this up once and for all.
Monday, May 23, 2016
She's 5' 3 7/8" *
Today's drama is brought to you by Birmingham. It is exacerbated by the fact Polly just realized she will always be shopping in the Petite section of JC Penny's. This really isn't news. She hasn't grown in more than two years. However, she saved all two years' worth of drama for me today.
So, if it was only the just Birmingham drama and not talking Polly off the cliff today, this blog may never have been written. I will have to thank her for that someday. But today, I need to write.
Back to selling in Birmingham. So, last I left you three folks, we were selling a home in Birmingham. Last week, the buyer told us they "needed more time" to do an inspection. I confirmed with Kirby, the buyers understand the price is firm and the property is As-Is. And frankly, it is in really good shape. One game buyers play is after an inspection on an As-Is property, give a laundry list of reasons why they need a lower price. Or, if the seller doesn't fall for that extortion, the buyer resorts to backing out of the contract. So, yay us.
I did tell Kirby I could not be held responsible for my actions if the buyers cancelled or tried to ask for anything else. I don't think he thought I was kidding.
In addition, apparently we are not using Legal Owl for closing. The buyer feels their attorney is much better suited for such an operation. True, but my attorney understands my LLC structure, and that is a bigger deal.
To prove my point, most of today's e-mails with Kirby were about the fact title had changed hands on this property. Yep. If you look at the tax records it did. At one point we did a lease-purchase and the lessee defaulted. We filed a quit claim, and voila! the property was back in our name.
However, the powers that be in Alabama are requiring us to provide said quit claim. I have explained until my fingers were numb from typing, my voice hoarse and my patience shot (though part of that was Polly's drama) that IT IS NOT OUR RESPONSIBILITY TO KEEP TRACK OF DEEDS THAT ARE RECORDED AND IF JEFFERSON COUNTY LOOSES IT, NOT MY PROBLEM. Of course they then wanted to talk with the attorney who did this. Unfortunately, he has passed on. So, unless they have super-natural powers, it isn't happening.
I also asked (again) if it would make more sense to use my attorney for this given there are some tricky situations. But so far, they are hell-bent on causing extra grief for themselves. I pointed out that we will not be at closing. Apparently closings in Alabama require a big old shin-dig down at the attorney's office where all the parties meet, join hands and sing a rousing version of Kumbaya while keys change hands. I also pointed out this is a holiday weekend. Notaries aren't in great supply on holiday weekends, so someone better figure out how to send us closing documents by Thursday if we are indeed closing on May 31. I would be willing to bet at this point they don't want me there anyway.
*Note: I was required tonight to measure Sweet Polly--just in case she may have grown today. She also wanted it documented, she isn't 5' 3" but 5' 3 7/8".
So, if it was only the just Birmingham drama and not talking Polly off the cliff today, this blog may never have been written. I will have to thank her for that someday. But today, I need to write.
Back to selling in Birmingham. So, last I left you three folks, we were selling a home in Birmingham. Last week, the buyer told us they "needed more time" to do an inspection. I confirmed with Kirby, the buyers understand the price is firm and the property is As-Is. And frankly, it is in really good shape. One game buyers play is after an inspection on an As-Is property, give a laundry list of reasons why they need a lower price. Or, if the seller doesn't fall for that extortion, the buyer resorts to backing out of the contract. So, yay us.
I did tell Kirby I could not be held responsible for my actions if the buyers cancelled or tried to ask for anything else. I don't think he thought I was kidding.
In addition, apparently we are not using Legal Owl for closing. The buyer feels their attorney is much better suited for such an operation. True, but my attorney understands my LLC structure, and that is a bigger deal.
To prove my point, most of today's e-mails with Kirby were about the fact title had changed hands on this property. Yep. If you look at the tax records it did. At one point we did a lease-purchase and the lessee defaulted. We filed a quit claim, and voila! the property was back in our name.
However, the powers that be in Alabama are requiring us to provide said quit claim. I have explained until my fingers were numb from typing, my voice hoarse and my patience shot (though part of that was Polly's drama) that IT IS NOT OUR RESPONSIBILITY TO KEEP TRACK OF DEEDS THAT ARE RECORDED AND IF JEFFERSON COUNTY LOOSES IT, NOT MY PROBLEM. Of course they then wanted to talk with the attorney who did this. Unfortunately, he has passed on. So, unless they have super-natural powers, it isn't happening.
I also asked (again) if it would make more sense to use my attorney for this given there are some tricky situations. But so far, they are hell-bent on causing extra grief for themselves. I pointed out that we will not be at closing. Apparently closings in Alabama require a big old shin-dig down at the attorney's office where all the parties meet, join hands and sing a rousing version of Kumbaya while keys change hands. I also pointed out this is a holiday weekend. Notaries aren't in great supply on holiday weekends, so someone better figure out how to send us closing documents by Thursday if we are indeed closing on May 31. I would be willing to bet at this point they don't want me there anyway.
*Note: I was required tonight to measure Sweet Polly--just in case she may have grown today. She also wanted it documented, she isn't 5' 3" but 5' 3 7/8".
Saturday, May 21, 2016
Want to Buy A Home In Birmingham?
Just in case you are in the market for such a thing, I ran across this Zillow listing.
Birmingham, AL 35209
2 beds2 baths1,080 sqft
$229,999
Zestimate®: $214,939
This 2 bed 2 bath home is the perfect starter home to show your parents and friends that you have it together.
The front porch leads you into a nice living room that has plenty of sunlight and a fireplace. To really impress your friends, put your coffee table there and put a bowl of lemons on top of a book or put a flower from the front yard in a vase. Bask in the sunshine beaming through the windows. Avoid your guests in the master bedroom.
The master bath has a stand-up shower. Would you rather take a bath? The second bathroom has a tub/shower combo. Start a bath and switch to a shower if you are indecisive.
The kitchen has granite countertops, an eat-in area, and tile floors. There is also a large pantry which is perfect for storing your gluten-free Bisquick. On one of Birmingham's 3 spring days, eat on the porch. The back porch overlooks a large backyard which is enclosed by a privacy fence. Live your dreams through your kids by playing sports in the yard. Wake up in the morning and let the dog outside while you stay inside. Beat the birds to pick blueberries from the bush, or pick rosemary. Find a creative recipe that uses blueberries and rosemary. The point is that they are there and have somehow survived.
From the kitchen you can access the dry basement or the back porch. The basement has plenty of storage for all the stuff that you pack up and move and are planning on going through one day. Tell your mom the home has a basement "in case of storms" and she will almost certainly nod in approval. Text your friends that "they are welcome to come use your basement" when James Spann interrupts your regularly scheduled tv programming to tell you about weather and respect the polygon from the comfort of the basement. It's unfinished, but you will be dry. Also, there is a one-year old heat pump. You will likely be the envy of your peer group because of your reasonably priced utility bills. If you need to leave just set the alarm and go. (It is wired for an alarm system, but you have to get your own account).
The location of this home is excellent. You will have no problem getting your fitbit steps in each day. Walk your dog to Homewood Park. Carry your kettlebells to Iron Tribe fitness. Ride your unicycle to Octane Coffee or O'Henry's. Take your child to the Creative Montessori School or just toss them over the fence in the backyard to get them there quicker because you are running behind because getting a kid ready in a timely fashion is difficult. (Disclaimer: Don't throw kids). Plan dinner with a friend for Little Donkey or Dave's Pizza, sushi, Zoe's, or Urban Cookhouse, but walk over by yourself early and eat a Steel City Pop pre-dinner. After dinner, suggest that you and your friend get a SC Pop as if it is your first. Or Walk to Dreamcakes or the Edgewood Creamery. It won't matter because you can throw on your Lululemon and work it off at pure barre, iFit, Sweat and Gears, or the Homewood Community Center/gym. Better yet, walk to the farmer's market at soho in that apparel to demonstrate your affinity for an active lifestyle. If you hate working out, just buy bigger clothes at one of the many shops in downtown Homewood. Worried about your soul? Walk to church at Dawson Baptist or Trinity Methodist depending on the age you were baptized. If that isn't your style, the home is convenient to 280, downtown Birmingham, and the interstate so you can go to the faith of your choosing. I don't care. If you would rather sleep in on Sunday, the street is very quiet.
If you work downtown you can choose I-65 north, 280, or you could bypass them altogether and head up 20th street to drop into the back of Southside/UAB.
The front porch leads you into a nice living room that has plenty of sunlight and a fireplace. To really impress your friends, put your coffee table there and put a bowl of lemons on top of a book or put a flower from the front yard in a vase. Bask in the sunshine beaming through the windows. Avoid your guests in the master bedroom.
The master bath has a stand-up shower. Would you rather take a bath? The second bathroom has a tub/shower combo. Start a bath and switch to a shower if you are indecisive.
The kitchen has granite countertops, an eat-in area, and tile floors. There is also a large pantry which is perfect for storing your gluten-free Bisquick. On one of Birmingham's 3 spring days, eat on the porch. The back porch overlooks a large backyard which is enclosed by a privacy fence. Live your dreams through your kids by playing sports in the yard. Wake up in the morning and let the dog outside while you stay inside. Beat the birds to pick blueberries from the bush, or pick rosemary. Find a creative recipe that uses blueberries and rosemary. The point is that they are there and have somehow survived.
From the kitchen you can access the dry basement or the back porch. The basement has plenty of storage for all the stuff that you pack up and move and are planning on going through one day. Tell your mom the home has a basement "in case of storms" and she will almost certainly nod in approval. Text your friends that "they are welcome to come use your basement" when James Spann interrupts your regularly scheduled tv programming to tell you about weather and respect the polygon from the comfort of the basement. It's unfinished, but you will be dry. Also, there is a one-year old heat pump. You will likely be the envy of your peer group because of your reasonably priced utility bills. If you need to leave just set the alarm and go. (It is wired for an alarm system, but you have to get your own account).
The location of this home is excellent. You will have no problem getting your fitbit steps in each day. Walk your dog to Homewood Park. Carry your kettlebells to Iron Tribe fitness. Ride your unicycle to Octane Coffee or O'Henry's. Take your child to the Creative Montessori School or just toss them over the fence in the backyard to get them there quicker because you are running behind because getting a kid ready in a timely fashion is difficult. (Disclaimer: Don't throw kids). Plan dinner with a friend for Little Donkey or Dave's Pizza, sushi, Zoe's, or Urban Cookhouse, but walk over by yourself early and eat a Steel City Pop pre-dinner. After dinner, suggest that you and your friend get a SC Pop as if it is your first. Or Walk to Dreamcakes or the Edgewood Creamery. It won't matter because you can throw on your Lululemon and work it off at pure barre, iFit, Sweat and Gears, or the Homewood Community Center/gym. Better yet, walk to the farmer's market at soho in that apparel to demonstrate your affinity for an active lifestyle. If you hate working out, just buy bigger clothes at one of the many shops in downtown Homewood. Worried about your soul? Walk to church at Dawson Baptist or Trinity Methodist depending on the age you were baptized. If that isn't your style, the home is convenient to 280, downtown Birmingham, and the interstate so you can go to the faith of your choosing. I don't care. If you would rather sleep in on Sunday, the street is very quiet.
If you work downtown you can choose I-65 north, 280, or you could bypass them altogether and head up 20th street to drop into the back of Southside/UAB.
Tuesday, May 17, 2016
Small Victory
Once upon a time we had a business partner named Jack. Jack, like most real estate investors, was all happy about life when times were good. However, when times were bad, he was a very dark man. Jack, by the way, also happened to be my real estate agent at the time.
In 2007 Jack approached us and wanted to partner with us on a home. We bought a really nice property actually. I happen to know that Jack is, and was then, in a much, much better financial position than us (he showed me proof of this). However Jack was allergic to spending money on this house. And unfortunately, things break--like the HVAC system.
At the time the HVAC broke, we asked him if we could just pay our half and he pay his half and add it to our owner's equity. He didn't like that idea. We asked him if we could just pay the whole darn thing and settle when we sell the house. He didn't like that idea either. Meanwhile the tenant was squawking. What he did suggest was a loan from the gas company, who provided such things, and let the tenant's rent make the payment on it every month. Now that's well and good and all, but it is ineffective. For one thing, now we are paying on an obsolete HVAC unit.
And of course, Jack being self employed, he did not qualify for a loan. Nor are Marty and I fans of anything on installments. But Marty felt to keep the peace between Jack and us over this one small issue, we would just do it. Six months later, Jack bailed, giving us all of the liability on this house. And in all fairness, all the profit.
Today, I paid off the loan early. I also may have made a passive aggressive comment or two to the Universe about Jack.
In 2007 Jack approached us and wanted to partner with us on a home. We bought a really nice property actually. I happen to know that Jack is, and was then, in a much, much better financial position than us (he showed me proof of this). However Jack was allergic to spending money on this house. And unfortunately, things break--like the HVAC system.
At the time the HVAC broke, we asked him if we could just pay our half and he pay his half and add it to our owner's equity. He didn't like that idea. We asked him if we could just pay the whole darn thing and settle when we sell the house. He didn't like that idea either. Meanwhile the tenant was squawking. What he did suggest was a loan from the gas company, who provided such things, and let the tenant's rent make the payment on it every month. Now that's well and good and all, but it is ineffective. For one thing, now we are paying on an obsolete HVAC unit.
And of course, Jack being self employed, he did not qualify for a loan. Nor are Marty and I fans of anything on installments. But Marty felt to keep the peace between Jack and us over this one small issue, we would just do it. Six months later, Jack bailed, giving us all of the liability on this house. And in all fairness, all the profit.
Today, I paid off the loan early. I also may have made a passive aggressive comment or two to the Universe about Jack.
Thursday, May 12, 2016
Random Bama--Legal Style
As I understand it, Kirby has fought for Legal Owl to be the closing attorney on my home I am selling. I sent a note out to her, cc'ing Kirby, letting her know this was coming. In my e-mail to Legal Owl, I mentioned there was an omission to the contract: Marty Sunshine is a licensed (inactive) real estate agent in the state of Arizona. Because I couldn't think of another word to describe the gravity of the situation as I saw it, I mentioned in Arizona it is a "big no-no to omit this." I also explained that "no-no" is a highly technical and legal phrase. Legal Owl wrote back and said law school has an entire semester which solely deals with important legal phrases such as "no-no" and "oopsy".
Diamond Jim got a weird fax the other day. Someone from some "Mortgage Risk Service" asked him to verify our tax return and mortgage information from 2004. He immediately called me and wanted to know if I could shed light on what this was about. No, I couldn't.
I was impressed. Since 2004, Diamond Jim has had four addresses, including one in a different state. His phone and fax numbers have changed in that time too. This guy took some effort to find him.
My best guess is it is related to the home that was just foreclosed and the "Mortgage Risk Service" is about to file a judgement against us. Legal Owl has another theory (and one I like significantly better): the mortgage processor is being audited. The Feds are still going after predatory lending from years gone by. I doubt this property will fall under predatory lending guidelines, but here's hoping she's right.
It is time to look at talking to a bankruptcy attorney. I have been putting this off. We are not ready to file, but it is time to buy an hour of someone's time and find out what our options happen to be. Ideally we don't file and life goes on. But I suspect it won't be that easy. It never is.
Speaking of weird Alabama stuff (when, I ask you, aren't we?). The Alabama purchase contract has the following verbiage in it. It is bolded for impact, I suppose: "After closing, the home is the responsibility of the buyer."
How cute.
_______________________________________
Apparently the competition for closing attorneys in Alabama is pretty hot. I got a weird e-mail from some other attorney's office saying if we use them instead of the attorney we want, they will "waive the $85 notary fee." Seriously? $85 for a notary?? Why not waive the Fed Ex fee instead, because all they are doing is overnighting us a few documents.
_______________________________________
I was impressed. Since 2004, Diamond Jim has had four addresses, including one in a different state. His phone and fax numbers have changed in that time too. This guy took some effort to find him.
My best guess is it is related to the home that was just foreclosed and the "Mortgage Risk Service" is about to file a judgement against us. Legal Owl has another theory (and one I like significantly better): the mortgage processor is being audited. The Feds are still going after predatory lending from years gone by. I doubt this property will fall under predatory lending guidelines, but here's hoping she's right.
_______________________________________
_______________________________________
How cute.
And finally, a Happy Birthday to one of my three readers: Home Jeanne: I hope you have a great day! Enjoy your day and have a beer for me.
Wednesday, May 11, 2016
Under Contact
Kirby sent me the paperwork yesterday! They accepted our counter offer. We are (hopefully) not coming in writing a check. They even agreed to a few of our other terms--but not our closing attorney. Sorry Legal Owl.
I know if I had held out for more money I would have spent a great deal more on the mortgage, upkeep, utilities and insurance. The insurance on this house is about $1,600 and due July 1.
Nothing else in this neighborhood has sold for what I had my home listed for. I am getting a fair market price but not my price. It isn't my favorite scenario, but I can live with it.
Tuesday, May 10, 2016
An Open Letter to Kendra
I belong to a Facebook group whose sole function is to be somewhat like a mini-Craigslist. People post on there when they are looking for a house cleaner, wanting tattoo recommendations or are wanting unsolicited medical advice (usually along with disgusting pictures of a rash or skin lesion).
My personal opinion is there way too many people on there with a high sense of entitlement on this site because about once every time I look I find someone ranting (and they brag they are ranting) about something in life that just didn't go their way which they wish to take absolutely no responsibility for. And at the end they always close with, "no negative comments," which makes me chuckle because they are posting this on social media but don't want anyone else judge their consequences.
This one from Kendra caught my eye. And yes, it started with "rant".
"Rant: I hate landlords who cheat tenants. We working hard for our money n they cheating us. We $100 or late on rent and they get mad and tell us they are going to evict. If they can afford a house why do they care if we late? We keep da yard good. We do dem a favor."
Major grammar infractions aside, there is so, so much wrong with this.
I am in a space right now where I am fed up with entitled tenants. And though I didn't comment on this I really wanted to. Here is what I would have written:
Dear Kendra,
I think we all dislike others who cheat us, including your landlord. After all, you have a contract with this person to pay what you are contractually obligated to pay, and yet you don't. By the way not paying what you agreed to pay constitutes stealing. I would also bet you are contractually obligated to take care of the yard and the home to a certain extent as well, so I just can't give you brownie points for that one.
Perhaps your landlord feels a bit like I do: they are sick of people taking advantage. They don't want to deal with other's petty dramas. Perhaps they don't want to solve your dilemmas. Or, just maybe they have done you countless favors and are spent because you keep asking for more. That's just a guess.
If your landlord evicts you, he (or she) probably has cause to do so. They can rent the home out for more money and have your baggage and karma out of their lives. You say you are hard working, then you know the value of a dollar. Perhaps you know about investing? That's what this owner did. They invested in a home. They invested in you. Only one of those is permanent. I guarantee the owner has been thinking about kicking you out long before they mentioned it to you.
It seems like if you can't afford the rent, move. Garnering sympathy on social media from like-minded folks does not solve your housing issues.
Sincerely,
A Frustrated Landlord
My personal opinion is there way too many people on there with a high sense of entitlement on this site because about once every time I look I find someone ranting (and they brag they are ranting) about something in life that just didn't go their way which they wish to take absolutely no responsibility for. And at the end they always close with, "no negative comments," which makes me chuckle because they are posting this on social media but don't want anyone else judge their consequences.
This one from Kendra caught my eye. And yes, it started with "rant".
"Rant: I hate landlords who cheat tenants. We working hard for our money n they cheating us. We $100 or late on rent and they get mad and tell us they are going to evict. If they can afford a house why do they care if we late? We keep da yard good. We do dem a favor."
Major grammar infractions aside, there is so, so much wrong with this.
I am in a space right now where I am fed up with entitled tenants. And though I didn't comment on this I really wanted to. Here is what I would have written:
Dear Kendra,
I think we all dislike others who cheat us, including your landlord. After all, you have a contract with this person to pay what you are contractually obligated to pay, and yet you don't. By the way not paying what you agreed to pay constitutes stealing. I would also bet you are contractually obligated to take care of the yard and the home to a certain extent as well, so I just can't give you brownie points for that one.
Perhaps your landlord feels a bit like I do: they are sick of people taking advantage. They don't want to deal with other's petty dramas. Perhaps they don't want to solve your dilemmas. Or, just maybe they have done you countless favors and are spent because you keep asking for more. That's just a guess.
If your landlord evicts you, he (or she) probably has cause to do so. They can rent the home out for more money and have your baggage and karma out of their lives. You say you are hard working, then you know the value of a dollar. Perhaps you know about investing? That's what this owner did. They invested in a home. They invested in you. Only one of those is permanent. I guarantee the owner has been thinking about kicking you out long before they mentioned it to you.
It seems like if you can't afford the rent, move. Garnering sympathy on social media from like-minded folks does not solve your housing issues.
Sincerely,
A Frustrated Landlord
Saturday, May 07, 2016
Cooperatively Uncooperative
A couple of days ago I wrote about a home I have listed for sale. The owner wants the tenants to stay and pay her mortgage while she is trying to sell. As you can imagine, this is not a recipe for success. I advised her (in writing) it would not be in her best interest to go this route. Instead, she should ask the tenants to leave (their lease is up June 30) and sell it when it is empty. And like most frustrated real estate clients of past and present, she doesn't take the advice she is paying for seriously.
Part of the reason why she opted to allow the tenants to stay while the home is for sale was because the tenants promised to be cooperative. "Sure, no problem! You can show the home any time!" Of course that sounds absolutely ducky in theory. But there are so many outside factors that make this a loose-loose situation. For one thing, these folks have nowhere to go. There are no rental homes available anywhere in the greater Phoenix metro area. That may sound like an exaggeration, but it isn't.
So, to put this picture together, tenants who are quite happily living in their rental home have agreed to allow strangers walk through it on a random basis so the owner can kick them out. Right?
Well, thus far, the tenants have been cooperatively uncooperative. When I call and nail them down for a time a buyer can walk through (if they acknowledge I am contacting them--and for the most part, I am now just knocking on their door), they say, "Yes, feel free to show it Tuesday between 2 and 3. Wait! I need to clarify, 2 and 3 a.m. on the second Tuesday of the third full moon. And by the way, please have the buyers only knock on the door and not use the doorbell. That way nobody is woken up. Also, please tell them not to go in any of the bedrooms or turn on any lights. My kids will be sleeping."
That kind of cooperative.
In addition to quirky hours they allow people to see the property, my sign has mysteriously disappeared twice. My custom signs are pretty pricey. I just bought them. This does not make me happy. I did find one sign in the bushes by their home. The other one is probably being used as an oil pan for their car--at least that's my guess. I would go look, but I don't have permission to enter the property, and I prefer to be sleeping at 2 a.m.
In addition to trying to sell a home where buyers have to use their imagination to know how the inside looks, the tenants happen to be clients of mine. I am (in theory) looking for a rental home or perhaps a home for them to buy. However, thus far they review my e-mails I am sending, but have done nothing to demonstrate any interest whatsoever to look for anything. And why would they? They are quite cozy where they are right now.
Part of the reason why she opted to allow the tenants to stay while the home is for sale was because the tenants promised to be cooperative. "Sure, no problem! You can show the home any time!" Of course that sounds absolutely ducky in theory. But there are so many outside factors that make this a loose-loose situation. For one thing, these folks have nowhere to go. There are no rental homes available anywhere in the greater Phoenix metro area. That may sound like an exaggeration, but it isn't.
So, to put this picture together, tenants who are quite happily living in their rental home have agreed to allow strangers walk through it on a random basis so the owner can kick them out. Right?
Well, thus far, the tenants have been cooperatively uncooperative. When I call and nail them down for a time a buyer can walk through (if they acknowledge I am contacting them--and for the most part, I am now just knocking on their door), they say, "Yes, feel free to show it Tuesday between 2 and 3. Wait! I need to clarify, 2 and 3 a.m. on the second Tuesday of the third full moon. And by the way, please have the buyers only knock on the door and not use the doorbell. That way nobody is woken up. Also, please tell them not to go in any of the bedrooms or turn on any lights. My kids will be sleeping."
That kind of cooperative.
In addition to quirky hours they allow people to see the property, my sign has mysteriously disappeared twice. My custom signs are pretty pricey. I just bought them. This does not make me happy. I did find one sign in the bushes by their home. The other one is probably being used as an oil pan for their car--at least that's my guess. I would go look, but I don't have permission to enter the property, and I prefer to be sleeping at 2 a.m.
In addition to trying to sell a home where buyers have to use their imagination to know how the inside looks, the tenants happen to be clients of mine. I am (in theory) looking for a rental home or perhaps a home for them to buy. However, thus far they review my e-mails I am sending, but have done nothing to demonstrate any interest whatsoever to look for anything. And why would they? They are quite cozy where they are right now.
Friday, May 06, 2016
$47.31 Can Cure a Lot of Headaches
So my home that is for sale in Birmingham has an offer. The offer is from an investor. Right now we are quibbling about a few items, including price. I didn't like their first offer, and Kirby countered back on price and who the closing attorney will be. Every other point is pretty much moot until we can get in the same ballpark.
Right now we are $1,500 dollars apart--at which point I will be able to close and not write a check. We are also far from my original asking price. If we can agree on a price, it will be a number that will give me a whole $47.31 in my pocket--and that's just if my numbers are right. My real goal is just to get rid of this house and not write a check in the end.
There are a few other terms we need to iron out. First, I asked for Legal Owl to handle the close. My real reason is because Legal Owl and Attorney Flip are the only people in Birmingham who are fully versed in my LLC structure. Using a different attorney will require several 8" x 10" color glossy photos, pie charts and Venn diagrams to explain. Though it is a pain, it won't be the end of the world to concede this. Besides, as a voice of experience, I can tell you I will never let a sale fall apart on who the closing attorney and title company happens to be.
I also have made it clear for the price of this home, THERE WILL BE NO REPAIRS. None. We are broke. We are done. We have put in a bit of money to make this home salable. There is nothing left. This is non-negotiable. However, it is an investor purchasing this home, so I don't expect a problem here.
There is also a question about the commission. Kirby took a hit on his commission to begin with. However, I am not sure if the buyer side is asking for a commission. If they aren't I am even willing to concede part of the difference in price we are apart. If they are asking for a commission, we can't sell it at their price.
Though as a seller, we aren't excited about giving away our home, there are some reasons why we are willing to let the home go as such a low amount.
1. Homes in this neighborhood stay on the market six months and sell for the price these investors are willing to purchase our home for anyway. So, we have a bird in the hand, so to speak.
2. We owe this particular bank a lot of money for the house they haven't foreclosed on yet. Once they do, they have promised us they will put a lien on the house. We were advised, they might even take any profit we get when we sell this one, so our $47.31 is up for grabs.
3. If we wait for a different offer, we might be waiting a long time, which will cost us a lot more than the $1,500 we are quibbling about. And then the bank may end up taking it anyway. After all, there is a mortgage, taxes, insurance and utilities to pay. There is the risk of vandalism and other hazards. So, as I am writing this, I am realizing the costs of keeping this home outweigh the $1,500 we are apart. Ack!
4. It has been pointed out that we will have a wonderful tax write-off if we sell. Frankly, even if we got a full price offer, we would still be taking a hit. And in all fairness, when I calculated a preliminary tax return next year--even calculating for a recapture in depreciation the IRS will sic on us--we would make our "profit" then. So, there is a light at the end of the tunnel.
The homework I gave Kirby was to give me a few numbers to see if I can make this work. If the dollars don't work, I guess we will be going on to the next offer. But I have to tell you, as an investor and a real estate agent, I realize it would be foolish to loose an opportunity for $1,500 and a few other tid-bits.
Right now we are $1,500 dollars apart--at which point I will be able to close and not write a check. We are also far from my original asking price. If we can agree on a price, it will be a number that will give me a whole $47.31 in my pocket--and that's just if my numbers are right. My real goal is just to get rid of this house and not write a check in the end.
There are a few other terms we need to iron out. First, I asked for Legal Owl to handle the close. My real reason is because Legal Owl and Attorney Flip are the only people in Birmingham who are fully versed in my LLC structure. Using a different attorney will require several 8" x 10" color glossy photos, pie charts and Venn diagrams to explain. Though it is a pain, it won't be the end of the world to concede this. Besides, as a voice of experience, I can tell you I will never let a sale fall apart on who the closing attorney and title company happens to be.
I also have made it clear for the price of this home, THERE WILL BE NO REPAIRS. None. We are broke. We are done. We have put in a bit of money to make this home salable. There is nothing left. This is non-negotiable. However, it is an investor purchasing this home, so I don't expect a problem here.
There is also a question about the commission. Kirby took a hit on his commission to begin with. However, I am not sure if the buyer side is asking for a commission. If they aren't I am even willing to concede part of the difference in price we are apart. If they are asking for a commission, we can't sell it at their price.
Though as a seller, we aren't excited about giving away our home, there are some reasons why we are willing to let the home go as such a low amount.
1. Homes in this neighborhood stay on the market six months and sell for the price these investors are willing to purchase our home for anyway. So, we have a bird in the hand, so to speak.
2. We owe this particular bank a lot of money for the house they haven't foreclosed on yet. Once they do, they have promised us they will put a lien on the house. We were advised, they might even take any profit we get when we sell this one, so our $47.31 is up for grabs.
3. If we wait for a different offer, we might be waiting a long time, which will cost us a lot more than the $1,500 we are quibbling about. And then the bank may end up taking it anyway. After all, there is a mortgage, taxes, insurance and utilities to pay. There is the risk of vandalism and other hazards. So, as I am writing this, I am realizing the costs of keeping this home outweigh the $1,500 we are apart. Ack!
4. It has been pointed out that we will have a wonderful tax write-off if we sell. Frankly, even if we got a full price offer, we would still be taking a hit. And in all fairness, when I calculated a preliminary tax return next year--even calculating for a recapture in depreciation the IRS will sic on us--we would make our "profit" then. So, there is a light at the end of the tunnel.
The homework I gave Kirby was to give me a few numbers to see if I can make this work. If the dollars don't work, I guess we will be going on to the next offer. But I have to tell you, as an investor and a real estate agent, I realize it would be foolish to loose an opportunity for $1,500 and a few other tid-bits.
Monday, May 02, 2016
Sadly, I Know How This Will End
I currently am the listing agent for five homes in the greater Phoenix metro area. All five sellers are very different. My favorite of the bunch just happens to have access to this blog, but that's not why she is favorite seller.
My sellers range from micro-managing quasi-neurotic to, "it will sell whenever it sells." The other three are mismatched in their somewhere. I have potential blogs galore about having homes for sale. And I have to tell you, this is a happy problem.
Today's seller, Mrs. "it will sell when it sells," story is brought to you by copious amounts of brown paper bags with my spent CO2 and words of sage advice that has been wasted and are now floating around in the ether. Essentially, she didn't listen to me and she will be furious when she finds out why her lovely home didn't sell.
I should quickly explain Mrs. IWSWIS, is a long time acquaintance. You might remember her son whose home I sold a while ago, whose tenants left a present for me behind... If you haven't read about them, it might be worth at least skimming the story. At least check out the picture. Anyway, Mrs. IWSWIS is a wonderful person who has, for the past two years, rented out her custom four bedroom, two bath home in Central Mesa while she is basking in the cool air in her Northern Arizona cabin.
Now that we are at the end of the lease, Mrs. IWSWIS is realizing if she holds on to this property for another year, she will have to pay capital gains taxes. Very true. When she decided it was time to sell, she sought me out, asked me for advice and then completely ignored what I said. My advice was: ask the tenants to leave, take care of a few minor maintenance issues and then list the home. It will sell in a week. But, whatever. She had other ideas. First, she wants $20k more for the home than she can honestly expect in the condition it is in. That would be an easy fix if it wasn't for the second and more pressing issue.
The second and more pressing issue: There are tenants in place. But she is cool with that. After all, this way she gets monthly revenue (fair enough, I want revenue too). The tenants also have a lease that isn't up until the end of June, giving them significant rights to the home. But Mrs. IWSWIS is more than generous. She is willing to let the tenants stay indefinitely until the house sells.
The tenants in question have six kids. The wife is a day sleeper and works nights. Arizona law, which these tenants are very familiar with, know that a two day notice is necessary before the home could be seen. But that doesn't mean the tenants have to be cooperative. Yes, they have to let the home be seen. However, the tenants don't have to clean prior to a showing. They don't have to stay silent and let the buyers just look around in peace ("Did you notice the crack in this tile, Mrs. Buyer? Just saying... there might be foundation issues..." There aren't foundation issues). And why would they when then they have themselves would have to move. Also, the tenants don't have to be polite ("I know you just got here, but now leave. We want to watch The Price is Right").
At first, Mr. Tenant was quite accommodating. "Yes, just give us any notice. We are happy to help out." After sixteen messages from me, they have switched to not replying to any phone calls, texts, certified letters or carrier pigeons. Therefore, the home isn't getting shown. And guess who will be blaming me for not selling her, "It will sell when it sells," home?
My sellers range from micro-managing quasi-neurotic to, "it will sell whenever it sells." The other three are mismatched in their somewhere. I have potential blogs galore about having homes for sale. And I have to tell you, this is a happy problem.
Today's seller, Mrs. "it will sell when it sells," story is brought to you by copious amounts of brown paper bags with my spent CO2 and words of sage advice that has been wasted and are now floating around in the ether. Essentially, she didn't listen to me and she will be furious when she finds out why her lovely home didn't sell.
I should quickly explain Mrs. IWSWIS, is a long time acquaintance. You might remember her son whose home I sold a while ago, whose tenants left a present for me behind... If you haven't read about them, it might be worth at least skimming the story. At least check out the picture. Anyway, Mrs. IWSWIS is a wonderful person who has, for the past two years, rented out her custom four bedroom, two bath home in Central Mesa while she is basking in the cool air in her Northern Arizona cabin.
Now that we are at the end of the lease, Mrs. IWSWIS is realizing if she holds on to this property for another year, she will have to pay capital gains taxes. Very true. When she decided it was time to sell, she sought me out, asked me for advice and then completely ignored what I said. My advice was: ask the tenants to leave, take care of a few minor maintenance issues and then list the home. It will sell in a week. But, whatever. She had other ideas. First, she wants $20k more for the home than she can honestly expect in the condition it is in. That would be an easy fix if it wasn't for the second and more pressing issue.
The second and more pressing issue: There are tenants in place. But she is cool with that. After all, this way she gets monthly revenue (fair enough, I want revenue too). The tenants also have a lease that isn't up until the end of June, giving them significant rights to the home. But Mrs. IWSWIS is more than generous. She is willing to let the tenants stay indefinitely until the house sells.
The tenants in question have six kids. The wife is a day sleeper and works nights. Arizona law, which these tenants are very familiar with, know that a two day notice is necessary before the home could be seen. But that doesn't mean the tenants have to be cooperative. Yes, they have to let the home be seen. However, the tenants don't have to clean prior to a showing. They don't have to stay silent and let the buyers just look around in peace ("Did you notice the crack in this tile, Mrs. Buyer? Just saying... there might be foundation issues..." There aren't foundation issues). And why would they when then they have themselves would have to move. Also, the tenants don't have to be polite ("I know you just got here, but now leave. We want to watch The Price is Right").
At first, Mr. Tenant was quite accommodating. "Yes, just give us any notice. We are happy to help out." After sixteen messages from me, they have switched to not replying to any phone calls, texts, certified letters or carrier pigeons. Therefore, the home isn't getting shown. And guess who will be blaming me for not selling her, "It will sell when it sells," home?
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