Posted on: 05th Jan, 2008 09:31 am
I have a 3BR home in Canton OH with an appraised value of $78K, $60K 1st mortgage, $10K 2nd, in a weak market and difficulty in qualifying renters.
hi mikepollard,
welcome to the forum.
i agree with you that market is very weak now. but if you can sell your house at the value, then you can pay off both of your first and second mortgage. so try to sell your house and hope you can be able to do it and get relief from your mortgage.
best of luck,
larry
welcome to the forum.
i agree with you that market is very weak now. but if you can sell your house at the value, then you can pay off both of your first and second mortgage. so try to sell your house and hope you can be able to do it and get relief from your mortgage.
best of luck,
larry
well mike, the situation is perhaps as you say that, you aren't able to get suitable renters as the house already have 2 mortgages and the market isn't strong enough.
i think it's because of the mortgages that renters aren't interested because in case you aren't able to pay off the loans, the lender may foreclose the home. and then, where would the renters go if their lease period isn't over by the time the lender forecloses.
please correct me mike, if i am wrong but that's how i perceive the situation here. now, what you can do is, take a combined loan amount worth the sum of the 2 balances, which is lower than the appraised value, it's well above 85% financing. however, it's not that easy to get and you may qualify at higher rates and fees in case you don't have a good credit record and financial situation.
with the combined loan amount, you should refinance the loans into a single mortgage and then offer the property on rent. using the monthly rent payments, you can then pay off the combined loan.
regards,
jessica
i think it's because of the mortgages that renters aren't interested because in case you aren't able to pay off the loans, the lender may foreclose the home. and then, where would the renters go if their lease period isn't over by the time the lender forecloses.
please correct me mike, if i am wrong but that's how i perceive the situation here. now, what you can do is, take a combined loan amount worth the sum of the 2 balances, which is lower than the appraised value, it's well above 85% financing. however, it's not that easy to get and you may qualify at higher rates and fees in case you don't have a good credit record and financial situation.
with the combined loan amount, you should refinance the loans into a single mortgage and then offer the property on rent. using the monthly rent payments, you can then pay off the combined loan.
regards,
jessica
