why? Why would anybody do this?

cindy-e · #21 03/21/12, 04:11 PM

Quote:

Originally Posted by oregon woodsmok

If the tribe will not extend the lease, I would offer majorly less than the asking price, live there for the 5 years, considering it rent, and then know I had to move one at the end of the lease.

But doesn't that have you bailing on a mortgage you agreed to pay in 5 years time? Or am I still missing something?

Cindyc.

ChristieAcres · #22 03/21/12, 04:43 PM

Quote:

Originally Posted by cindy-e

But doesn't that have you bailing on a mortgage you agreed to pay in 5 years time? Or am I still missing something?

Cindyc.

A really nice custom home just sold for $275K on 5 acres with a wide open view of the Olympics & Hood Canal, not far from where I live (just a few years old). The Buyer is doing some finish work, had to replace the kitchen cabinets/appliances (were removed). It is a very well built home! Another home, auctioned for $350K, next door, with a view not quite as nice, but similar. That 2nd home was a larger home finished high end inside, also on acreage.

Sounds like you need an Agent who is working hard on your behalf to find you a screaming deal. The best deals are Short Sales or ones where you buy a house that is being repaired to put on the market (that is how those folks bought that great house with the incredible view for only $275K). Foreclosures are not the best deals here, as Banks get more for them that they do Short Sales.

ryanthomas · #23 03/21/12, 05:29 PM

Quote:

Originally Posted by cindy-e

But doesn't that have you bailing on a mortgage you agreed to pay in 5 years time? Or am I still missing something?

Cindyc.

I think you would either have to pay cash or get a five year mortgage. Sounds like it would be tough to get a mortgage on it anyway.

blufford · #24 03/21/12, 05:33 PM

It might be alright if your life expectency is less than the 5 years. Maybe no heirs to worry about. You still would get your interest deduction from the morgage during your lifetime.

TedH71 · #25 03/21/12, 09:20 PM

In Hawaii, ALL land is leased, period. You can buy the house but not the land.

oregon woodsmok · #26 03/22/12, 07:03 PM

[[[[.......But doesn't that have you bailing on a mortgage you agreed to pay in 5 years time? Or am I still missing something?.....]]]]

There is absolutely no way that you are getting a mortgage on a house with a ground lease that is going to expire in 5 years. So there is no mortgage to bail out on. If the seller is going to carry paper, he won't carry it for more than 5 years because after that, there is nothing to foreclose on if you don't pay.

I suspect it is very likely that the seller is hoping for all cash.

Me, I wouldn't pay $77,000 for a house with a 5 year ground lease. The offer would have to be a lot sweeter than that to get me interested. But say, if it would be a $400,000 house on it's own land, it might be worth $77,000 to live in it for 5 years. you have to look at it like you are renting. (except you can make changes to the house and grounds)

Depending upon what the house is like, it might be possible to disassemble it, or at least strip it of anything valuable to carry away. That would provide some salvage value. As long as you check the lease carefully. It probably says the house must be left in good condition.

Yikes, Lorichristie. I would love to snap up some of those bargains. Except my own house isn't worth squat anymore since the market crashed.

edcopp · #27 03/22/12, 08:04 PM

Quote:

Originally Posted by cindy-e

So a realator wants me to consider purchasing a home on the reservation. waterfront. good price. but in 5 years the res takes back the land under the house and you have to move it or walk away. realator said "so, basically it's like glorified renting." ?? Am I missing something here? What is the upside of paying 77,000 for a house you don't get to keep or you know you're gonna have to move in 5 years?

The up side is the Realtors commission, nothing else. You do not count.

sheepish · #28 03/23/12, 06:37 AM

It is very common to "sell" leases on reserve land and also on university property. Often the terms of ownership do not allow for outright selling of the land so this is a way for the owner to get value out of the land.

Near where I live a shopping centre is on leased land as are some very expensive homes.

LisaInN.Idaho · #29 03/23/12, 10:02 AM

Quote:

Originally Posted by oregon woodsmok

It's very common in Oregon, and probably Washington (and for sure in Hawaii) for recreational land to be leased and not sold. There are lots of vacation cabins located in the National Forest on leased land.

Leases are usually quite long, 25-100 years. .

This is also what I've seen in Idaho and Arizona. There are people here by "my" lake who've built HUGE (million dollar) summer homes on Idaho Endowment Lands, with longterm leases or they've improved Grandpa's old cabin into a lake McMansion.
You should hear them squeal when the state proposes a lease increase (they are WAY under where they should be and they directly pay for Idaho schools). Now the drums are beating by these out of state people to force the state to sell them the land.
That wouldn't be happening on tribal lands though. I can't imagine building on a place I didn't own.

texican · #30 03/24/12, 07:36 PM

Quote:

Originally Posted by cindy-e

So a realator wants me to consider purchasing a home on the reservation. waterfront. good price. but in 5 years the res takes back the land under the house and you have to move it or walk away. realator said "so, basically it's like glorified renting." ?? Am I missing something here? What is the upside of paying 77,000 for a house you don't get to keep or you know you're gonna have to move in 5 years?

ALERT::: JOKE>>>>

Did you let the realtor see you just get off the turnip truck?

I don't think I'd ever want to get involved in exotic land transactions... I like myself some Warranty Deeds, with Title Insurance (or do the title work myself). No restrictions, no covenants, no nothing... it's mine, and I can do what I want, without some agency, local, state, federal, tribal, or HOA butting their noses in.

The upside? The realtor makes another boat payment. Hey, they might be trying to unload their personal white elephant (or boat anchor) on you or any warm body that comes into their office.

why would anyone do this? Well, there are plenty of crazy people out there... I've heard tell of lots of folks 'underwater' because they took out stupid loans, ARMs, no principal loans, five year balloon loans, etc.