So I have 5 homes that i purchased one by one during the height of the dot-coms, rented out, refinanced, then purchased the next. It was smooth sailing, those days, but now I'm in a major bind. I'm behind on my property taxes, one of my homes hasn't sold so it's on the verge of foreclosure, another home was destroyed by my tenants so its undergoing renovations, and i'm even having trouble keeping up with the mortgage of my principal residence. I'm in a complete mess! I've already called all my mortgage companies seeking help, but most of them said they could not do anything about it. One mortgage company with the home that hasn't sold is working with me to try to keep me out of foreclosure, but i'm slipping behind many of my other homes. Does this situation sound similar to anyone else? Does anyone have advice, or stories of the like, they'd like to share? Anything would help. Thanks!
2006-12-08 11:44:37 · 8 answers · asked by Suzi A 1 in Business & Finance ➔ Renting & Real Estate
This is a lesson that a lot of people are learning that realstate is an investment and that means risk. Be glad it is other people money ie the banks.
Do not feel bad this is happening to a lot of people due to a breaking bubble.
http://www.breakingbubble.com/index.htm
2006-12-08 16:10:31 · answer #1 · answered by Anonymous · 0⤊ 0⤋
i wonder where the property is to know if the market is hot, or in a recovery mode. i work with investors, as an investor, i own a commercial and residential mortgage business. what we do is recommend you do a least option. take a $6000.00 non refundable deposit to own. put it in escrow. then charge them a lower rental than you normally would but, put them on a net rent lease. if it breaks they repair. the a/c is theirs, the appliances, holes in walls. give them 12-24 months to get a mortgage in their name. you use the $6000 as concession money if they go to the table. if they have questionable credit i send them to my restructuring dept. and if the risk is low we will put it on the back end and pay out the specialist at closing. if they cannot get the mortgage then they do not get the money back. you can also charge a security deposit, or at the very least make sure they know it is used in place of if something goes wrong. what you need to do is establish a relationship with a mortgage broker business to handle all the sales on your properties. hope this helps. feel free to email me if you need more information. don't worry too hard. that is like sitting in a rocking chair and rocking and rocking. you are tired and worn out and in the same spot! good luck
2006-12-09 05:00:21 · answer #2 · answered by MARY A 2 · 0⤊ 0⤋
How are you trying to sell one of your properties? I would make sure you do all you can to get the property sold and use the money to pay you own home first, then contrate on you other houses, can you speed up the home renovations to get the other home rented out to a better tenant, that won't destroy the place, my best referrals come from pastors from churches with people seeking homes to rent. Also how about trying to refinance to pay what is owed and keep your homes out of for closure. Best Wishes.
2006-12-08 12:15:26 · answer #3 · answered by Janice 10 7 · 0⤊ 0⤋
Depending on what state you live in you have from 90 days to 1 year before you get foreclosed on.
As others have stated, worry about your primary residence first. Heck, pay everyone else last.
Worst case scenario you lost the 5 investment properties, your credit is dinged and you still have a roof over your head.
Best case scenario, a big development is coming in and your investment properties go through the roof.
It is what it is.
2006-12-08 20:29:47 · answer #4 · answered by El_Nimo 3 · 0⤊ 0⤋
Why hasn't the one sold? Can't you offer a weekend only price or drop the sales price to attract a buyer fast? It sounds like you just need to move the 2 properties and keep current on your primary.
If you owe too much on them and that is the reason, see if you can short sale them.
2006-12-08 12:09:18 · answer #5 · answered by homes_az 2 · 0⤊ 0⤋
If the worst comes to worst, make the payments on your primary residence first! Even if the others go to foreclosure you still will have a roof over your head.
2006-12-08 12:02:27 · answer #6 · answered by Bostonian In MO 7 · 0⤊ 0⤋
If you actually do have any equity in these houses, drop the prices to zero out on sales. Get out while you can. If you have leveraged yourself to the limit on all of them, keep making the payments on your primary residence.
Donald Trump was broke five times.
2006-12-08 15:36:11 · answer #7 · answered by teran_realtor 7 · 0⤊ 0⤋
Easy coome easy go.
2006-12-08 11:47:10 · answer #8 · answered by Albert H 4 · 2⤊ 0⤋