Guys, I feel as if I have hit a brick wall. I own a rental property but these darn tenants have not been paying their rent. As a result, a payment arrangment that was made with my bank to bring my loan current wasn't met. The bank is now going to foreclose on my property on november 7th. What options do I have at this point. This has damaged my credit even further as it was reported on my credit report :"foreclosure initiated." I am in the process of evicting and trying to find someone to rent the place but I am afraid about refinancing cos I think my credit has been really destroyed to the point lenders will flat out deny. Are there any options I have at this point?
2006-10-13 07:53:51 · 7 answers · asked by Blk Angel 2 in Business & Finance ➔ Renting & Real Estate
This is a rough one. If you've got 30% or so equity, try a hard money lender as a last resort. As long as you don't take cash in your pocket, it's a rate/term refi. The hit for Notice of Default is not hurting you; what's hurting you are the thirty, sixty, ninety, and 120 day lates on a mortgage, which is worse than being late on anything else. Alternatively, if you have other properties, you might consider a loan on one of them if the equity picture is better. Lots of variables, but the situation might not be as bad as you think. Go talkd to at least half a dozen brokers in your area right now. Explain the situation in detail. Sign up with at least two, so that if one is lying or blowing smoke out his ***, you have a backup ready to go.
2006-10-13 09:18:41 · answer #1 · answered by Searchlight Crusade 5 · 0⤊ 0⤋
I help people in your shoes everyday. You got a lot of great advice. Here are the steps you must do:
1. evict the tenants. Hire a lawyer if you don't know how to do it. It should cost you around $500. Alternaitevly bribe your tenants to leave within a week. Tell them they can either have $300 and be gone in a week or you'll eveict them, put an eviction on their record and then get a judgement against them to ding their credit.
2. See if you can borrow money from the following, in this order: 401k, friends/family, conventional financing, hard money lending.
3. If the above fails, or if you determine you do not have the holding power to keep the rental, then sell the place and if it doesn't sell fast, sell it at a discount to an investor.
If you're in Southern California, I can help.
Regards
2006-10-13 12:09:04 · answer #2 · answered by Anonymous · 1⤊ 0⤋
You should find a lawyer who has a free first consultation and talk to them about it. They would be more knowledgeable as to what you were capable of doing in your particular state.
I would hesitate to re-list the property, because it would be unfair to move a new family in, have them pay deposits and stuff, then have to ask them to leave because the bank took possession of the property.
As for the current tenants, I would evict them immdiately, even if it is possible to save the property. Officially evict them, though. Don't just ask them to leave. That way they have to appear in court and make payment arrangements. If this happens before the foreclosure, your bank may accept their court ordered payment arrangement terms to catch up. Talk to someone at the bank, though. Don't just assume you are sunk. Research your options. They don't really want the house- they just want the money. Often, they are more willing to work it out than people think. Good luck! I hope everything works out for you!! ♥
2006-10-13 08:07:50 · answer #3 · answered by ♥ Butterfly ♥ 4 · 0⤊ 0⤋
The only other option you have is to sell the property to another investor/individual....You will take a hit on it, but at least you won't have a foreclosure on your credit.....Contact the mortgage company and ask if it is possible to sell the property, some banks won't allow you to do it, if it is already in foreclosure.....But, you may be able to convince them to allow you to sell, contact the loss/mitigation dept of the bank....Call local investors and see what they will offer on the property....BUT you must act FAST....Otherwise you will loose everything....Best of luck
2006-10-13 08:05:58 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Our company has helped several people in your situation get out of foreclosure. But you have to hurry before its to late. You only have a few weeks left. You can check out our companies website at www.SatisFund.com we are a member of the BBB. Please feel free to call me so I can help you get started. 310-803-9039 x102 ask for Jaime.
2006-10-13 08:07:27 · answer #5 · answered by jcred2201 2 · 0⤊ 0⤋
You might schedule a consultation with a real estate attorney.
2006-10-13 08:04:13 · answer #6 · answered by honiebyrd 4 · 0⤊ 0⤋
sue the tenants who haven't paid?
2006-10-13 07:57:37 · answer #7 · answered by sasmallworld 6 · 0⤊ 0⤋