Hello everyone! I know it has been a very long time since I have posted on here, however I guess I was waiting for an issue that hit close enough to home and blog about it. This last week Merced City Council had the task of either upholding a decision or making a new one. For the first time since high school I am actually very impressed with how the decision went. For those of you who do not live in Merced or were not aware of this issue let me shed some light on it. The just of the situation is that renters felt they were entitled to stay in a home that their landlord had foreclosed upon even after they were asked to leave. For a brief moment in time the City Council okay'd it, however after the City Council meeting two days ago, that decision was revoked.
Most of you might ask why I care, seeing as I am not a tenant or a landlord, well let me enlighten you. I have worked in Real Estate for many years and every time I get out of it, it seems to pull me back in. I have worked in property management and been on the escrow side of a selling transaction, I know just what is going on. Let me give you my opinion on the subject. I am very proud of the City Council for making the right call. Although my heart goes out to the tenants who are affected by their landlords losing their home, I still feel very strongly that the tenants should not be able to live there past the date when the bank takes over the property.
What many people do not know is that when you sign a deed to buy a house, the bank is loaning you money for that house based on collateral. Collateral being the house that you are signing the papers for. Although these tenants never signed that deed, their landlord did. Why would banks loan money to anyone from this point on if they have no collateral? They wont! That will only worsen our real estate industry in Merced. After reading the comments of protesters from the meeting I never realized so many people did not understand the idea of collateral.
I am very proud to stand behind the council members who voted against upholding this unjust ordinance. I think you have made a big impression on how to stand up for what is right and I commend you for doing so. It is a matter of the law, and it bothers me other council members were so quick to forget about the law, seeing as how they are the ones who are supposed to uphold it. I really feel as a Real Estate professional this was the right action to take. There are plenty of assistance programs for tenants as well as the opportunity to receive cash to get out as soon as possible so the bank can start the selling process. There is help if you need it, I think it is just a matter of asking or not. I feel very passionate about this issue and am proud that we have come so far as a community to make the right decision. Food for thought! Have a great day and God bless!