Long Beach Short Sale-A Tale of Betrayal & Greed
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Once upon a time there was a nice young couple who wanted a 2
bedroom Downtown Long Beach Condo to call home and to begin a future in. About 2 years ago
this sweet young couple met a nice real estate agent while visiting
open houses beyond their financial reach.
Knowing little about the Long Beach communities, nothing about real estate and very little about managing their finances; they wisely sought out professional assistance. They developed a working relationship with that agent, who helped them find the Downtown Long Beach Condo they were dreaming about and live in today.
The agent,
not content with this sale, explained to this nice young couple that
they could purchase a second condo in Downtown Long Beach, as an investment, and rent it out. While they would
be upside down to the tune of about $1,000 per month, they should not
worry about it because they could afford it and in two years she would
sell it for them at a huge profit. Nice agent also assured this young
couple that she would find them a tenant and check their credit etc¦
for the 2nd condo. She didnt. 
Relying on the
professional they went ahead with the 2nd condo purchase anticipating a large
profit with which they could purchase a nice home with a yard in a
couple of years. This nice agent also arranged for financing on both
units, both loans were 2 year fixed, both of which are now adjusting
massively. It was a financial plan-of sorts which is now a disaster.
2 years
ago the hot sellers market was winding down, most agents knew what was
developing in the Long Beach Real Estate market and were hoping for a mild downturn. This was
not a new agent, she had to know the position she put this couple into.
Nice
young couple had a hard time finding a tenant and the $1,000 a month
became a bit more. They eventually found the tenant from hell, who
wrecked their rental condo, annoyed the living crap out of all of the
neighbors and took over 8 months to evict. Naturally the tenant did
not pay rent for those 8 months and broke the bank.
Nice
young couple is watching the market crashing around them while going
through the eviction process and are beginning to freak out. They
immediately arranged for a nice large heloc so they could cover the
unexpected expenses. Nice lender must have been feeling very generous,
gave them a very large line to draw freely from, and they did - they
maxed it out trying to keep their heads above water.
Both units are now short sales.
