Strangers sharing mortgages – Many would-be homeowners say TICs are worth the risk
SF Gate has yet another story on TICs and the upcoming individual mortgages.
“One of the few tricks to getting into the superheated San Francisco housing market has been the tenancy in common. In so-called TICs, co-owners share a single mortgage on a property. As a result, the owners are intertwined financially. If one owner can’t make the payments, the whole group can suffer.
The practice, already widespread in San Francisco, could become even more popular because of a new kind of mortgage loan that would free owners from financial dependence on one another. The new mortgage would allow each owner in a TIC to have his or her own loan, which also would make it easier to sell or refinance units.”
Once again, everyone’s favorite tenant’s rights activist has his say… “”They would make TICs look so much like condos that they actually cross the line and turn into condos,” said Ted Gullicksen. “They may trigger TICs to become covered under condo conversion law.”
Sorry, dude. No can do. A TIC is a form of HOLDING TITLE. There is NO WAY to regulate HOW PEOPLE HOLD TITLE. A condo conversion takes a large building with one assessor’s parcel number and gives it multiple parcel numbers. In a TIC (with one loan or many) there is no change to the parcel number and therefore no conversion. It’s just a bunch of people joining together to purchase a single property.
Ted & Co. will just have to be a little more creative if they think they can ’stop’ TICs from forming. It’s not about the TIC, it’s about the evictions. Evictions are a function of supply and demand.
Not all TICs result in evictions, and not all evictions are a result of TICs… But ALL EVICTIONS ARE DUE TO A LACK OF HOUSING.
Do I need to say it again? Apparently, I do. BUILD MORE HOUSING!
For more information on the as-yet-not-understood concept of ‘holding title’, here’s a link to a great PDF file from Chicago Title Company. Even Ted should be be able to understand this one.
Funny, but I don’t see ‘condo’ on there anywhere!
