Hoping to make a profit. The problem is, now that the housing market is in a recession, I am in danger of foreclosure. The reason being is that I have a 1% negative amortization loan. The loan balance that I owe is more than what the home is worth. The property is in Antelope, CA. Should I just try to sell it for a loss or should I just foreclose on it. Also, I have tenants in the home. Can I sell with the tenants still in it. Please help. Thanks.
2007-03-26 10:17:25 · 7 answers · asked by ricknasty 1 in Business & Finance ➔ Renting & Real Estate
Get out now with a small loss, before it loses even more value. The RE party ended a year ago- you just didn't notice that the music stopped until it was too late. Cut your losses and get on with your life.
2007-03-26 11:18:59 · answer #1 · answered by Cardinal Rule 3 · 0⤊ 0⤋
I feel your pain, I'm a mortgage broker and I have had many phone calls here in Florida regarding this issue. The last thing you want is a foreclosure on your credit. You can either sell it for a loss, rent it for a loss, and what seems to be most popular is lease with option to buy. Lease with option to buy requires a significant down payment and larger rent payments. Some of the money each month goes towards a down payment for the buyers. Here's the deal many stay in the home for a year or two and because their buying they seem to take care of the property more. Although 90% never purchase. Investors are using this method instead of flipping houses. This allows the investor to sit on the property until the market improves.
2007-03-26 10:37:20 · answer #2 · answered by lisalaubroker 1 · 0⤊ 0⤋
genuinely pay off all debt first. Pay the $5k off with the $10k you have on your account. Now, save, save, save!! I very own investment homes too and am in basic terms 23. For investment homes, the non-public loan business company will % 20% down many times and have 6 mos of the charge interior the economic business enterprise...yet you will genuinely % better than that. You in no way comprehend while a tenant won't pay or if the plumbing is going undesirable. there's one million issues that can happy so which you % to be very safeguard that if something happens your decrease back is roofed.
2016-10-20 12:13:44 · answer #3 · answered by benavidez 4 · 0⤊ 0⤋
do not and i repeat do not go to foreclosure- leave the tenants in place- call a Realtor- negotiate a percentage to sell- and get that puppy on the market. ASAP
2007-03-26 10:28:35 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Can you make up the payment? You can try to sell it to the tenants. You need to take with people in you area to see what you can do.
2007-03-26 10:29:52 · answer #5 · answered by s_uperdave 3 · 0⤊ 0⤋
Get out from under it now- save your credit at least and do the right thing by your tenants.
Advertise on Craigslist- its free-. You'll have possible investors/buyers call. They may be able to assume you loan- maybe you can carry it- maybe you can sell at a loss. There are options now- take them and save your credit- live to invest another day!
2007-03-26 10:52:49 · answer #6 · answered by nolimitsladies.com 2 · 0⤊ 1⤋
Try a realtor who will discount their fee, sometimes as low as 4%...
2007-03-26 11:11:30 · answer #7 · answered by Mark P. 5 · 0⤊ 0⤋