2 of my 5 investment properties vacant for 6 months. Can't afford payments. Who should I talk to first?

Question

What's the worst that can happen if I walk out? Will my paycheck be garnished? Other than bad credit, what are the other consequences?

Answer 1

The very first thing you should do is contact your mortgage company. You did not say you were in foreclosure as of yet, so I presume that you are simply 4-5 months behind in you mortgage payments.

There is only one sequence of events that can happen, you need to save your investment property. You did not get this property by giving up. I can not believe that you even considered walking away from your future for you and your family.

The worst that can happen if you walk is the lender will foreclose on the existing property. You said 2 of 5 investment properties, so again help me here, I am assuming that you have 5 single family houses.

Since I have came to that conclussion then you are talking about walking on the two that are behind in the mortgage payments.

When things go good things are really good, but when things go bad bad things happen. You should have had a reserve saved for just this emergency. Since you have 5 investment properties someone should have told you how to protect yourself in the event this happens. You should have set up some type of corporation and place the investment propereties in them, even if you were only protecting yourself from liability.

The houses are the collateral the bank has for the money they loaned you, normally they do not go after a person's individual check.

How hard are you trying to get a renter in the 2 properties? Even if you have to offer the 1st month free with 2 months of paid rent. You can ride that out.Try harder, you need to protect what you have built up.

When you call the lender speak with the Loss Mitigation Department. Ask what are your options, and see if you can get a forebearance agreement. This will require you to make a couple of payments but it will buy you a month.

The past due monthly payments will be added to the back of the loan or more than likely they will now become a 2nd mortgage. You will now have to make 2 payments to your lender. One to the first as agreed when you signed loan docs. The other is for the newly established second.

Now there is another way you can do this. Establish what is owed on each property as to the late mortgage payments. Place an ad in the paper that you are willing to sell the property with little or no credit and the owner will carry the mortgage note.

The late payments on one property plus a little more will dtermine the down payment. Once that has been established subject the sales price from the amount you owe on the property and the down payment this will be the amount of the second mortgage you will carry on the property. The monthly amount will be the amount of your current 1st mortgage as well as the amount of the 2nd that you will carry. The monthly payment will be determined by the number of years your second is amortized for (Normally 30 years) the amount you will carry and the interest rate you charge. Now once this has been established add the monthly add these two together, it will now give the new owner the amount he has ro pay each month to you.

Sell each house in this manner.

You will now send the amount you would normally pay to the first and keep the rest for your second.

What ever you do if the lender has not foreclosed on you as of yet , then you have approximately 90 days to get your act together and determine which direction you will take.

I hope this has been of some use to you, good luck.

"FIGHT ON"

Answer 2

First off you should have started looking for help a few months back. Yea crap happens, I know first hand. You should talk with lender, see if you are upside down or not. Then be willing to rent with those people WHO are in the place YOU are(bad things happen to good people; it only takes one broken wrist to put a person out of work for a year!!) I had a lender on my house in FL willing to make payments but all payments were rolled to the back of the loan. My house was so upside down I cried.
Go to a good real estate co. some will buy the prop. from you for what you owe including past fees.

Wish you the best of luck. Trust me it does get better(even when it seems like it won't).

Answer 3

Mortgage lates than foreclosure. Talk with a Realtor in your area and see if you can dump for quick sale. I would also look at any investment clubs in your area..these are nice options to unload some property. Have you thought of Section 8. Many tenants there looking for affordable housing. HUD has a program that will also enable you to take a loan, do some improvements and turn your rentals into assisted living units, or home for the elderly and disabled. One more option would be a lease-back to the city or county you live in for low-to moderate income earners. Good luck!

Answer 4

nyte gave you some very interesting ideas; however, if you are currently in foreclosure, you have no time to set up section 8 housing. and i do not know if you'd be the type of landlord that could handle it: you must do certain, very specific, things for uncle sam and HUD in being such a landlord. as well as that the apartments themselves must meet bookoo criteria even to be considered for section 8. so then, if you are up against the wall:

talk to your lender first. see if you can refinance the properties based on your equity to get you through these bad times. tell your lender everything. if not, then, immediately,

call the Realtor that acted as your buyer broker/agent, should you have been satisified with her/his efforts in the past, and that such person cares about you, to ask what can be done to sell them. if you put them on the market, pay very close attention to the "comparables" that your agent shows to you. today is not the time you will get top dollar--it is the biggest buyer's market that i have ever personally seen, as well as what the managing brokers in my past ever saw! it is amazing, really.

another thing to help: call your home inspector. if you did not get a home inspection prior to closing, ask your Realtor to find a good one for you. it's real important for you to know the condition of the entire structure, meaning, what is broken? if you have not been a careful landlord, you did not maintain your parcels. if you let a roof rot, you have leaks. if you don't replace the roof (another loan), nobody will buy the place, at any price. your listing will be on the market too long, so it will become "stale," then everyone can figure out that something is wrong with it. see what i mean?

that is how you will have to price your failing properties also: price them to sell. if they sit on the market even longer than 6 weeks at the original listing price, you can safely assume that you are not a serious seller, because if so, you did not price them to SELL. you are a most serious seller if your lender cannot help you. so then, listen to your Realtor.

look at the "comparables" of only those similar properties to yours, in the same general location, that have CLOSED in the past 12 months. then look at the same parameters for those that CLOSED in the year prior, as well as one year prior to that one. then you will see how the market fell apart 2 years ago.

you can ask your real estate attorney if your paycheck will be garnished, but i really don't think it will. banks hate foreclosure (but the capture of the real estate will most likely preclude them from wage garnishment. if they will, file for bankruptcy). a bank's business is solely to make money. they do not manage and lease units. if they foreclose, you lose everything you put into the purchase, plus, plus, plus ATTORNEY'S FEES! so, get friendly with your lender now, before foreclosure. tell your lender (if there is nothing it can do to help you retain your ownership) that you are putting them up for sale and that you wish to avoid paying attorney's fees for foreclosure. then ask them how you can avoid it. one of my clients once had to do that and avoided paying attorney's fees because she was so honest with the lender. she put the house on the market priced to sell and sold it fast. the bank wanted to be informed of everything. once they saw the contract, they stopped legal proceedings. that would be good for you.

GOOD LUCK! if you have any other very specific question, write me at the address provided here.

Answer 5

nicely if the land is leased i think of you would be entitled to uphold the hire. i could use this as a bargaining device for a chit. be certain that the hire ends up in a year and could be canceled at that element by using the two celebration. while you're actually not likely to apply the three acres for something you're able to be waiting to earn some greater earnings if the present leaseholder needs to resume it. i could probable merely purchase the land. as much as now as criminal subject concerns i do no longer think of you're able to run into to lots of an issue as long as you are able to stay with the words of the hire than it sounds like it could repay in the long-term.

Answer 6

Jail just playing. most likely you are upside down and they will take your two empty houses and one more the cover the loss.

http://www.breakingbubble.com/index.htm

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