Posted on: 31st Oct, 2007 10:53 am
We own several rental properties. Things are not really hanging in there, we are less than 30days on our payments, but are behind on our taxes. What's going to happen if we have to let them go? Should we try to work something out with the bank? Will they even negotiate?
HELP
HELP
hello josiewales,
it is important to contact the bank immediately as you already have a late payment.
talk to them clearly regarding your situation and see if they provide any alternative repayment option.
you may also try to sell your properties by listing them with the real estate agents.
are you thinking of foreclosure?
well, in that case, it is going to have negative effect on your credit. you may avoid it by doing a short sale or a deed in lieu of foreclosure.
the taxes have to be cleared otherwise you may get a lien placed on your property.
it is important to contact the bank immediately as you already have a late payment.
talk to them clearly regarding your situation and see if they provide any alternative repayment option.
you may also try to sell your properties by listing them with the real estate agents.
are you thinking of foreclosure?
well, in that case, it is going to have negative effect on your credit. you may avoid it by doing a short sale or a deed in lieu of foreclosure.
the taxes have to be cleared otherwise you may get a lien placed on your property.
Hi Josiewales,
First of all you should pay your taxes. You can surely talk to the bank and find out if there is anything that you can do with your late payments.
Thanks,
Larry
First of all you should pay your taxes. You can surely talk to the bank and find out if there is anything that you can do with your late payments.
Thanks,
Larry
so, you don't mention to where your equity stands on the rentals -- are they 80% financed, or less? can you 'cash-out refinance' one of them and pay the taxes with the equity? bring a few numbers to this table.
I think Charles, cash-out refinance can be a good option and that will also help him pay the taxes. But this will depend on how much he can borrow based on his equity.
"What's going to happen if we have to let them go?"
Are you asking about letting the properties go or the taxes?
If you let the taxes slide then they can place a lien on your property and even foreclose. It is a worst case scenario to owe taxes, comparable to owing the bank and getting foreclosed on. I would give the bank which holds your mortgage a call and ask if they have any assitance they could give. Like others said refinancing could help but may just put you in a deeper hole.
If you could provide some additional info including the values, amounts owed, etc. that may help provide some better answers for you.
Are you asking about letting the properties go or the taxes?
If you let the taxes slide then they can place a lien on your property and even foreclose. It is a worst case scenario to owe taxes, comparable to owing the bank and getting foreclosed on. I would give the bank which holds your mortgage a call and ask if they have any assitance they could give. Like others said refinancing could help but may just put you in a deeper hole.
If you could provide some additional info including the values, amounts owed, etc. that may help provide some better answers for you.
