Family can't move into house they bought

[tyecopeland]

Story involves covid eviction issue and California law so might end up in dc.

https://www.foxla.com/news/couple-bu...orium-loophole

Added article in spoiler for those who don't like clicking links.

Spoiler!

RIVERSIDE, Calif. - When Tracie and Myles Albert purchased a beautiful four bedroom house in Riverside, California they never realized that at the end of escrow the seller would suddenly refuse to give up the keys and leave.

"It’s just draining, emotionally and financially," says Tracie. On January 31, 2020, the couple purchased the home. More than a year later, they still haven’t been able get inside their property. Chris Taylor is the Real Estate Agent who sold the house to the Alberts from a man who wanted to sell immediately.

"He needed $560,000 from the sale of his house in two weeks and he called me on a Sunday, so in traditional real estate there's no way of doing that unless the buyer’s a cash buyer," says Taylor.

Since the house was free and clear and worth more than $560,000 the Alberts felt it was a great deal.


"It took us scrambling to get everything we had, our life savings put together and a hard money loan on top of it to make that happen," Myles stated.



During escrow they discovered there was a $30,000 tax lien on the house which slowed things down, but in the end, all parties signed on the dotted line and the sale was completed.

"We own the house, outright. That's our house and it's all in a contract, written, legal, done. He's been paid the money in his account. How could we have no rights to go into our home," asked Myles.

FOX 11 News tried to speak with the seller but when reporter Gina Silva knocked and announced herself, no one came to the door.

Taylor says, "It’s genuinely unfathomable to me that we live in a state where something like this is even possible. They closed escrow on this home January 31, 2020." The Alberts and Taylor have contacted authorities and tried to get the seller evicted but because of the pandemic, they’ve gotten nowhere.

"They have this case under a COVID tenant situation, of no evictions when it doesn't fall under that at all. This transaction went through in January 2020 before any of that, it isn't a renter who was getting thrown out. It's the guy who collected all of this money," stated Myles.


Eviction Attorney Dennis Block says, "This year alone, we’ve handled at least 7 maybe 8 cases of this exact type of situation."

He says people purchasing homes need to be extremely cautious, especially if they notice any red flags during the process. Block says what’s happening to the Alberts could happen to anyone.

"This person is not a tenant, it’s a previous owner who is enjoying the benefits of the money that was transferred to his account but of course doesn’t want to move out of the premises that he no longer owns," Block stated.

The Alberts filed an unlawful detainer but because of the California eviction moratorium, the case has been stalled. Time is simply passing by and the immaculate house they fell in love with is now becoming an eyesore.

Tracie says, "I tried watering the lawn one time and he came out and ripped my sprinkler lines, ripped all the wires. The Palm trees are dying, everything was beautiful and everything is dying."

Her frustrated husband says when he contacted law enforcement, they told him, "If you were in Arizona, if you were in Nevada, this wouldn't be a problem, you would just go take your house back. But in California, like our hands are tied, even though we're on your side, there's nothing we can do."

[DaneMcCloud]

People always contend there's a "Housing Bubble" and that prices will eventually "Come Down". But when has that ever happened in large markets before?

We bought our home 17 years ago and all I heard was "Wow! That's a lot of money! I'm going to wait until prices come down because these prices can't last!!".

17 years later, my home is worth three times the purchase amount and no, it has never gone down in value.

The market is going crazy everywhere, from South Carolina to the panhandle of Florida to the entire West Coast. If it goes down in one market, it'll go down in every market and I just don't think that's going to happen.

Welcome to low interest rates and a housing shortage.

[tredadda]

Originally Posted by DaneMcCloud

People always contend there's a "Housing Bubble" and that prices will eventually "Come Down". But when has that ever happened in large markets before?

We bought our home 17 years ago and all I heard was "Wow! That's a lot of money! I'm going to wait until prices come down because these prices can't last!!".

17 years later, my home is worth three times the purchase amount and no, it has never gone down in value.

The market is going crazy everywhere, from South Carolina to the panhandle of Florida to the entire West Coast. If it goes down in one market, it'll go down in every market and I just don't think that's going to happen.

Welcome to low interest rates and a housing shortage.

Vegas maybe after the housing bubble burst in the early to mid 2000s? I do agree that almost always houses go up in value. The biggest jumps I have been seeing are in the price range the average American can afford. Million dollar homes appreciate, just not as fast as the market of available buyers is so much smaller. Middle class priced homes are skyrocketing as people try to get in while interest rates are so low.

[neech]

Originally Posted by Bugeater

They're working on it here as well, my valuation went up $70k this year, a 30% increase. I'm fighting it, but with the way the market is going...it might not be that far off from reality.

How are you fighting it, are you getting an appraisal done to your property?

[vailpass]

Originally Posted by tredadda

I think low interest rates have as much to do with it as those two groups.

That’s a big part, definitely. Also, the Phoenix housing market has been a prime spot for investor-buyers from Canada and other places for years, and we’re a destination market for Californians who sell big then move out of state. In both cases they are mainly cash buyers.

[vailpass]

Originally Posted by DaneMcCloud

People always contend there's a "Housing Bubble" and that prices will eventually "Come Down". But when has that ever happened in large markets before?

We bought our home 17 years ago and all I heard was "Wow! That's a lot of money! I'm going to wait until prices come down because these prices can't last!!".

17 years later, my home is worth three times the purchase amount and no, it has never gone down in value.

The market is going crazy everywhere, from South Carolina to the panhandle of Florida to the entire West Coast. If it goes down in one market, it'll go down in every market and I just don't think that's going to happen.

Welcome to low interest rates and a housing shortage.

This. It might dip a little but it will never go all the way back. A relatively small investment in a piece of property in San Jose 20 years ago has turned into something bordering on ridiculous.

[Bugeater]

Originally Posted by DaneMcCloud

People always contend there's a "Housing Bubble" and that prices will eventually "Come Down". But when has that ever happened in large markets before?

We bought our home 17 years ago and all I heard was "Wow! That's a lot of money! I'm going to wait until prices come down because these prices can't last!!".

17 years later, my home is worth three times the purchase amount and no, it has never gone down in value.

The market is going crazy everywhere, from South Carolina to the panhandle of Florida to the entire West Coast. If it goes down in one market, it'll go down in every market and I just don't think that's going to happen.

Welcome to low interest rates and a housing shortage.

I don't necessarily think prices are going to fall, but they have to level off at some point. This isn't Colorado or California...it's the goddamn midwest, not exactly somewhere people are clamoring to come live.

[tredadda]

Originally Posted by vailpass

That’s a big part, definitely. Also, the Phoenix housing market has been a prime spot for investor-buyers from Canada and other places for years, and we’re a destination market for Californians who sell big then move out of state. In both cases they are mainly cash buyers.

I can see why Phoenix would be a destination for people from California. Still close to there without the outrageous cost of living. What does fascinate me is with so many people leaving, who is overpaying for homes in California? Where are they coming from?

[Bugeater]

Originally Posted by neech

How are you fighting it, are you getting an appraisal done to your property?

I told them, in no uncertain terms, that there's no goddamn way in hell my home appreciated that much in one year. And it didn't.

[neech]

Originally Posted by Bugeater

I told them, in no uncertain terms, that there's no goddamn way in hell my home appreciated that much in one year. And it didn't.

Well good luck with that, in many cases I’ve heard you need an appraisal paid by you to get them to budge. I don’t know what they cost these days.

[sedated]

Hoping a bubble bursts might be too much, but I've bid on 2 houses recently - 25% over asking - and lost because someone else did the same while waiving inspection and appraisal. Is it really too much to ask to not have to blindly throw a ton of cash at someone to get a house? Apparently not because in both cases there were over 10 offers within 24 hours.

[tredadda]

Originally Posted by sedated

Hoping a bubble bursts might be too much, but I've bid on 2 houses recently - 25% over asking - and lost because someone else did the same while waiving inspection and appraisal. Is it really too much to ask to not have to blindly throw a ton of cash at someone to get a house? Apparently not because in both cases there were over 10 offers within 24 hours.

The bubble won't burst, but I do think once interest rates rise again there will be a slow down. The incentive is to buy now while rates are very low. People waiving that stuff is ridiculous and is a bad move, but also shows the desperation in trying to get a home no matter the cost.

[scho63]

Doghouses are even selling for $250,000 in Cali.

[DaneMcCloud]

Originally Posted by tredadda

I can see why Phoenix would be a destination for people from California. Still close to there without the outrageous cost of living. What does fascinate me is with so many people leaving, who is overpaying for homes in California? Where are they coming from?

A lot of the homes are being purchased by investors because the interest rates are so ridiculously low right now.

Originally Posted by Bugeater

I don't necessarily think prices are going to fall, but they have to level off at some point. This isn't Colorado or California...it's the goddamn midwest, not exactly somewhere people are clamoring to come live.

Yeah but that's bound to happen when you're pricing out millions of people from affordable homes.

[DaneMcCloud]

Originally Posted by vailpass

This. It might dip a little but it will never go all the way back. A relatively small investment in a piece of property in San Jose 20 years ago has turned into something bordering on ridiculous.

Yeah, for sure. We have 17 new hotels going up down the street from us along with the new Netflix/Avengers tower, which is 22 stories tall, so I'm expecting our value to skyrocket in the next 3-5 years.

But when everything else around us is rising simultaneously, it doesn't really do us much good, unless we want to move from the area, which really isn't a consideration.

[DaneMcCloud]

Originally Posted by tredadda

The bubble won't burst, but I do think once interest rates rise again there will be a slow down. The incentive is to buy now while rates are very low. People waiving that stuff is ridiculous and is a bad move, but also shows the desperation in trying to get a home no matter the cost.

The big question is this: Will interest rates rise again?

I tend to think the answer to that question is no.