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TENANT RIGHTS

Started by JoanneD1 • 20 replies • 1817 views

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JoanneD1 (Arizona)
Posts: 447
Posted:
Best Group Around: This is off the subject but I wonder if anyone knows if a tenant has the "first right of refusal" to purchase the property if it has become bank-owned? This has happened in my HOA and the listing agent told me that the tenant made the deal directly with the bank. We became aware of this because the property was listed in MLS and it went PENDING in less than 24 hours with a listing price far below fair market value. I have calls into the FBI Mortgage Fraud division also The tenant had offered over $800K to buy as short sale and bank would not approve....so they went to Sheriff sale and this very same lender would not take offer for less than $1,000,011 and now they have this outrageous listing price with pending to the tenant who was willing to pay MUCH MORE. They have just shot more hell out of our declining values. The tenant may have paid more than the list price and cleared out ALL contingencies BUT was this legal? No one even got a chance and at this price IT WAS A STEAL. Another owner just had appraisal for smaller home without golf course location as in said property for more that $150K about list price. Opinions please and I won't hold anyone accountable. THANKS!!
FredS7 (Arizona)
Posts: 927
Posted:
First refusal means that the person has the first opportunity to buy at the offering price.

I know of no requirement that a tenant be offered the right of first refusal. This could be written into a lease howeever by agreement between the tenant and landlord.

Other than that-your posting is pretty hard to follow. Are you objecting to the fact that the tenant bought the house for the listing price from the bank? Can't see why you would object, and in any case this is between him and the bank.

MelissaP1 (Alabama)
Posts: 13,836
Posted:
This is the second time the poster has posted it. Just re-arranged the wording. They apparently don't like who's moving in and wants to find a way to stop it. There's nothing there to be illegal and there's no need for a HOA to be involved. A HOA can't interupt a contract between owner and tenant.

Just chalk this up to a HOA member who doesn't like another neighbor and wants to blame it on home value issues....
Former HOA President
JoanneD1 (Arizona)
Posts: 447
Posted:
Melissa, Apparently you have no idea of what I am talking about! I could care less who buys the property, but care a ton about the fact that the listing price was set about $200,000 less than fair market value! Do you get that? That sale has devastating effects on our property value. Certainly the HOA is not involved from that standpoint nor did I ever elude to that. I HAVE NEVER written about this but there are several distressed properties in my HOA that I have written about. This is just a different case. I was also the treasurer/secretary for my HOA and titles do not impress me. How rude of you to respond to my honest question which was "does a tenant have the right of first refusal when it comes to purchasing a property that is bank-owned prior to the property being offered to the public. You obviously has no experience in real estate either. And your right.....I do not like rentals because that devalues our neighborhood. No need to respond to anything I write in the future. I apologize to other readers for tone of my response to a ridiculous reply. Hope all will take your future responses with a grain of salt!
FredS7 (Arizona)
Posts: 927
Posted:
Umm...your property is now worth more because there is one fewer bargain-priced bank-owned property.
JoanneD1 (Arizona)
Posts: 447
Posted:
No Fred and I am sorry if I am not making this clear. The home that is selling for $599K is large, on the golf course and fully improved. Had been listed for $1,500,00 at one time and then offered as a short sale for $1,000,000. THe most recently offered at $599 and sold. In real estate terms that brings the square foot price down GREATLY and diminishes the values of any of the owners who bought at higher prices. Hope that helps. All of our homes values dropped a ton because of this. I am sorry if I have complicated, but I will get it figured out. Thank you.
JoanneD1 (Arizona)
Posts: 447
Posted:
Fred, in this market supply and demand is not a factor. Buyers want rock bottom dirt cheap or they move onto the net rock bottom dirt cheap. Arizona has been hit very very hard and the inventory seems endless with years of property available.
FredS7 (Arizona)
Posts: 927
Posted:
There is nothing either good or bad, but thinking makes it so.

-Wm. Shakespeare
BrianB (California)
Posts: 2,820
Posted:
Quote:
Posted By JoanneD1 on 06/27/2011 3:03 PM
No Fred and I am sorry if I am not making this clear. The home that is selling for $599K is large, on the golf course and fully improved. Had been listed for $1,500,00 at one time and then offered as a short sale for $1,000,000. THe most recently offered at $599 and sold. In real estate terms that brings the square foot price down GREATLY and diminishes the values of any of the owners who bought at higher prices. Hope that helps. All of our homes values dropped a ton because of this. I am sorry if I have complicated, but I will get it figured out. Thank you.

Cool! so you have the exact same home as you had yesterday, but now, you pay less taxes on it because the value is less. Man, that is a deal and a half! I wish my home/neighborhood would do that!!! Live in the same home as always, but pay less taxes to the state. What a deal.
JoanneD1 (Arizona)
Posts: 447
Posted:
Brian, No the state of Arizona has raised the tax rates so that some of the losses are covered by the devaluation of the properties; However, there is a one month period of time when a homeowner can appeal the value statement. I am told that it is a very difficult and timely process. What is very difficult is that until there is legislation passed that will permit appraisers to omit the sales of distressed homes, whether they are short sales or foreclosures. I was told by a lender that very legislation is being considered right now so this is a nationwide problem. Comps from distressed sales make it very difficult for properties to recover in this stressed market. There are currently 5 homes for sale in my community that will be SERIOUSLY affected by comps. This is the 5th foreclosure in this small community of 79 homes. This is the lowest comp ever created thanks to the appraiser. The listing agent laid the blame on the appraiser. Thank you. This is a buyer's market beyond belief and they have no shame!
MelissaP1 (Alabama)
Posts: 13,836
Posted:
You can blame it on the greedy mortgage companies that were selling a bill of goods to uneducated hungry potential homeowners. They essentially caused the own collapse.
Former HOA President
DonnaS (Tennessee)
Posts: 5,671
Posted:

Joanne,

I am very aware of your concerns but this one sale is not what has caused the devaluation of your homes in this neighborhood. There actually is nothing that you can do either so I am not sure what you think that you or us here can answer for you.

A quick example is the sale of my home exactly 4 years ago. In a golf course community, our average home values were around $600,000. We listed ours at $630.000, sold for 610.000. Within a year, every home identical to ours were listed around 350 to 380.000 and you could not give them away. It is what happened to the market.

Every day I count my blessings that we got out but yet I feel terrible for the young couple who paid that high amount and the tax records show the value at $320.000. This is a cycle that home valuse have gone thru for ages. You need to just accept that the home got sold cheap (I wish that I were this buyer) but at least the association will be able to collect it's dues from the property.
JoanneD1 (Arizona)
Posts: 447
Posted:
Hi Donna! I totally understand what has happened to home values and you are right.....I am way off topic and not making any headway. My closing argument is that when a smaller home, not on the golf course and with less upgrades is appraised at the same time and comes in almost $200,000 higher than the bigger home on the golf course with more upgrades, something is rotten in Denmark. Have a great week and thanks again.
JoanneD1 (Arizona)
Posts: 447
Posted:
Melissa, Yes that and a politician who thought everyone should own a home whether they could afford it or not. Thank you and have a great day.
DonnaS (Tennessee)
Posts: 5,671
Posted:

Joanne,

I may get hung on this statement but--ech, here goes anyhow. The glitch in the way homes are appraised starts at the lenders. Their appraisal system is hugely flawed. They allow the assessors set the standards. Property appraisors are so inconsistant and I wonder about their qualifications and some of their ethics (some and probably a small some)
JoanneD1 (Arizona)
Posts: 447
Posted:
Donna......I am not hanging you because you are absolutely right......the damn industry is a mess and the government is in with the lenders even though they would like us to think not! Appraisers need to be familiar with the properties and there are several that know this community very well. When an out of town lender hires some out of area trustee, they don't care but what is really odd in this case is that this VERY SAME BUYER offered to buy the property at the Sheriff sale for $225,000 MORE than it was listed for!!! but the bank would not take it. There was a second mortgage involved.So the buyer just waited and made a deal DIRECTLY with the bank before it was ever offered to anyone. That does NOT pass the smell test. The listing agent told me that himself. This is going on all over the country. Thanks.
JoanneD1 (Arizona)
Posts: 447
Posted:
This is why I am contacting the Mortgage Fraud Division at the FBI! This could be something or nothing, but someone is absorbing all these loses and it is the American taxpayer!
JoanneD1 (Arizona)
Posts: 447
Posted:
Just another thought.....when prices fall this drastically, HOA's can be particularly affected in that it brings in a different buyer. All of our operating expenses remain the same, and we have scaled back as much as we can. We have high monthly fees and now they look way out of balance compared to these home values and that is making sales VERY difficult. Have homes here on the market for over 400 days because some sellers refuse to sell for what the buyer's are willing to pay and they have lowered the prices and they still don't sell. Who knows where the bottom is. Thank God these sellers are moral folks who pay their dues, while others have just quite and gone to foreclosure. Sorry to ramble but this is my most valuable asset and it is sliding off the cliff and taking us with it.
DonnaS (Tennessee)
Posts: 5,671
Posted:

Joanne,

You absolutely must remember that you are not the only ones dealing with this. We are all in the same boat. High end or low end, we are all in the same boat. Just because you are on the high end of this does not mean that your house is more valuable to you than some people who are in $160.000 homes. That is what they could afford and you were fortunate to be able to buy at the high end.

I have seen so many instances where some homes are over valuated because the Market was there and people overpaid for properties, especially in some areas. S. Florida and Arizona and Las Vegas come to mind. Million dollar houses were actually $500.000 houses but the "Need" to have a prestigeous hopuse in a certain area generated the inflated prices. I lived that one. Sounds like you might be dealing with a reality check. Sorry but I calls it like I sees it.
JoanneD1 (Arizona)
Posts: 447
Posted:
Donna, Your point is well taken and you are right this does have an affect on ALL neighborhoods and the importance of a roof over one's head is serious no matter where the home is. When prices are driven down because of incompetence, that is another matter. There are plenty of screaming deals around, but buyers do need to consider the monthly costs. Sold real estate in Wisconsin....many could afford the mortgage, but the taxes took them out of the market. Thanks! Always good to chat with you.
DonnaS (Tennessee)
Posts: 5,671
Posted:

Joanne,

Born and raised in Wisconsin, lived there until I was 55 years old.. Taxes forced us out to S. Florida where property taxes are cheap but then there is insurance and HOA dues which never stoppd escallating. So Tennessee was a very welcome change to all of that,---septin the sales tax is at 9.5%

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