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Wednesday, April 7, 2010 as of 11:14 AM ET

The Casone Exchange
  • June 13, 2011 04:54 PM UTC by Cheryl Casone

    Joplin, MO: A Tale of Two Cities

    I wasn’t comfortable initially with doing a segment about the desperate plight of  homeowners in Joplin, MO that were scrambling to find shelter.  Storm victims have been buying/renting up every available piece of real estate since the tornado, an unforeseen but positive event for the local housing market.

    Maybe there is a broader lesson here:  the U.S. rental market could be a boom for cash based investors AND could also be a savior for potential foreclosure victims. 

    Should homeowners seek to rent out their homes instead of facing foreclosure?  Does the average person know how to be a landlord?  I’ve been told that many job seekers are reluctant to move to other states where there are jobs available because they are stuck with their home.   If you rent the home, and it seems the rental market is strong right now, then are you off the hook and able to relocate? If I am thinking too simplistically tell me so, but it seems there are multiple solutions.

    As for the folks of Joplin, insurance companies are stepping up and paying out claims, hence the jump in home sales:

Chip

You can only be an effective landlord if you live nearby the property you are renting, otherwise, you will be taken advantage of. The only way to rent when you live out of state is through an agent.

June 16, 2011 at 1:35 pm

Carla,Ballwin,MO

Due to the tornado, the rental market is overstretched,most of the displaced will have to relocate outside Joplin. Per a report on the radio this morning,FEMA has set up temporary housing (18 months) for homeless victims of the tragedy. My aunt has been over there for weeks helping folks transition back to a bit of "normalcy". This has been heartbreaking for all Missourians.

June 15, 2011 at 9:37 am

Linda

If you purchased your house between about 2003-2009, renting out the house will not cover your expenses. If you are willing or able to handle the negative cash flow, it might be an option. I know from experience. 3 years of enduring $1,000 negative cash flow, the market is down further for rents and sales. I had put 20% down on a 30 year fixed loan. I am now trying for a short sale.

June 15, 2011 at 9:21 am

Glenn

Something needs to be done to try to soften the landing of the housing market & to speed up its recovery. Those who advocate just letting the system work it out -- will exacerbate system bringing in more and more loans into default & foreclosure. More homes will be forced underwater - esp. hurting those who have had their loans for years & good records of payment of their loans. Banks, mortgage holders, loan services need to do more to try to correct the problem. Rent to own is great idea.

June 13, 2011 at 6:16 pm

about this blog

  • Cheryl Casone joined FOX Business Network (FBN) in September 2007 as an anchor. Prior to FBN, Casone served as a correspondent for FOX News Channel’s (FNC) business unit and was a regular guest on FNC’s Your World with Neil Cavuto. Casone brings years of experience covering finance, business, and consumer news to FBN.

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