OfflineHi Graziosi family. I am new to this site and I am looking for any advise that you guys can give.
I bought an investment property in florida 3 years ago and now I owe more than the property is worth.
I am not sure what to do. I have done some research on shortsle and forclosure. Currently the is not rented and I am paying the morgage out of my own pocket.
These the options that I have:
1. Do a shortsale. There is no quaranty that the Bank is going to accept the foreclosure, because I may show that I can't pay the mortgage. The other issue is that they may accept the shortsale but then issue me a note for about 20000 usd and because it is not my primary resident I might have to pay taxes on remaining balance. I am currently in a 25% tax bracket.
Base on my calculation I will have to come up with 39000 usd and if I do have that I could do intallment with interest.
2. I can do a foreclosure and then wich is worst that a shortsale because this stays about 7 to 10 year on my credit and there is a possibility that they can come after my personal property.
3. I can rent the place out for the going rental in the area for 600 usd which 215 usd less that the mortgage payment and I might have to pay someone to manage the property which is an additional 150 or more a month. So I will have to come up with an additional 365 usd. Negative Cash flow.
Can anyone give me some suggestions?
Thanks
Hi, I would say for sure do not let the property go into foreclosure. Have you advertised it for sale anywhere? Maybe you can try and find someone willing to take over the payments if you just walk away. If you can't and you'd be losing more money even if rented out then I would approach the bank and see if a shortsale might be the best thing to do at this point.
Jeremy
This train, Dreams will not be thwarted
This train, Faith will be rewarded
Big wheel roll through fields where sunlight streams
Meet me in the Land Of Hope And Dreams
Bruce Springsteen
Try selling it yourself with owner finance. Get at least 5000 down. You can control your payments with your interest rates. People are willing to pay more per month when they are trying to buy. I have several homes this way and it works great.
Randy
www.adeptpropertiesllc.com
Can you give me an example how the owner finance will work if I owe the bank 91000 and the property worth 29999. I did not realize that you could offer owner finance on a property that you don't fully own.
Thanks for the info
Louis
THis is a common situation with a lot of Home owners today, they owe the bank
more than the FMV, so they let the bank foreclose on the House. This creates
a flood of REO's on the market. Looking at your numbers, you have one of those
loans. A potentual buyer will have a CMA done and know the FMV, and won't pay
what you owe even with a deep discount, your numbers are way far apart. What
stratigies to use in this situation? don't know, maybe someone else does. On
owner finance, you can do a GM strategy if your numbers are little above FMV,
get a tenant buyer,
George
Find renters
Do everything you can to keep the house. Offer a month free at move in to entice, but screen thoroughly
Don't let it go into foreclosure
Hi guys,
I am in the process of buying two family property and I using 75% from my self directed IRA and I want to use 25% from my credit card.
My credit card is zero percent for 1 year and then it goes to 13%. Is it a good idea for me to use my credit card.
Has anyone of you use your credit card to invest?
Thanks,
Louis
Has anyone use property direct to buy property?
If you did. Can you give me some feedback on what you think about them.
additional info
Property direct is a company that buys and sells properties with tenants already in the property.