About 4 years after we purchased a beautiful solid farmhouse on 3+ acres and restoring it, we ran out of money. Literally. We claimed bankruptcy. The home is still very much unfinished and we have no money. If we were to finish it, our home, according to local real estate agents would be worth about $160,000 more. How do we go about finding money to complete it?
To date, our mortgage is at $190K and the value is estimated at $199K as is. So we have nothing to work with now. When complete, the home will be worth automatically $160K more, conservatively speaking. WE are having a hard time finding anyone or any business to help us. Any suggestions?
2007-11-07 06:00:22 · 7 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
You are really hosed because of your bankruptcy.
Stay where you are and do one thing at a time as you can afford to do it. It may take a while, but it will get done.
good luck
2007-11-07 06:09:16 · answer #1 · answered by Perplexed 5 · 0⤊ 0⤋
Stay where you are.
The 160,000. Phantom equity is just that, phantom.
If and this is a big if you could find someone to loan you the money to fix the place up to sell you still might not realize what you think you're going to get out of the place due to the current conditions in the real estate market.
Make yourself comfortable and finish the home little by little as you can afford to.
Good Luck
Terry S.
http://www.Welcome2Arizona.com
2007-11-07 08:31:29 · answer #2 · answered by Terry S 5 · 0⤊ 0⤋
If you have already filed bankruptcy, you've just destroyed your chances for any sort of loan to finish this remodeling. Right now, it sounds like you have next to zero equity in the property, given your mortgage value vs property values.
Do not count on the real estate agents' opinions as gospel. They are estimating to the best of their ability. However, the value of the home when completed rests purely on what a buyer will pay for it.
I'd recommend selling 'as is' and starting over. Sad to say, you're going to have to rent for awhile until your credit scores improve, however.
2007-11-07 08:17:20 · answer #3 · answered by acermill 7 · 0⤊ 0⤋
If I am understanding your question, you are not sitting on $160,000 of equity, you are sitting on $160,000 of potential equity.
Since you declared BK, it will be very challenging to find anyone to loan to you at good terms. I would stay put and try to work on the house as time and money allow.
2007-11-07 06:41:45 · answer #4 · answered by godged 7 · 0⤊ 0⤋
the real estate market is very bad right now- how much will it cost you to finish it and do you know for sure it will be worth $160,000 more. I think the best bet for you is sell it as is and let someone else finish restoring it .
2007-11-07 06:12:13 · answer #5 · answered by nj2pa2nc 7 · 0⤊ 0⤋
There is no automatic in real estate. No bank will give you a loan based on potential equity. especially after a BK.
2007-11-07 11:40:54 · answer #6 · answered by frankie b 5 · 0⤊ 0⤋
Sell it to a relative or friend with good credit. That will give you the cash to finish the house. When its finished. Buy it back.
2007-11-07 06:58:28 · answer #7 · answered by thebigcheese1993 2 · 0⤊ 0⤋