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what to do with rental property?

Posted on: 18th Nov, 2007 08:10 am
We have a rental property in a different city. We have sunk a lot of money into fixing it up (30,000) about 4 years ago and are losing 150.00 per month in the difference between rent, water/sewer and our mortgage. We can't increase rent, the area won't support it. We have tried selling 2 different times, once prior to repairs and once after and have had NO interest. We are current on payments and no late payments, but we cannot continue to do this. All options out there seem to be only if we are late on payments or heading towards foreclosure. Are there any options for us to get out from under this? And what will the effect be on our credit? At this point we are seriously considering walking away and taking the hit on our credit - we don't know what else to do. Any suggestions will help. If it matters, we are in Colorado. We have tried " homevesters" and the house is in too good of shape for them.
hello jandjspengler,

i think you may talk to your mortgage company for a refinance to lower down the interest rate. the lower rate might help you to make the monthly payments with the rent and you will get some more time to sell the property.

you can also put up rent with a lease to purchase option so that at the end of the lease period the tenant will buy the property.
Posted on: 18th Nov, 2007 11:09 pm
Hi Jandjspengler,

Welcome in this forum.

If you are facing problem regarding your payments, talk with your lender immediately and see if there is any options available for you. As you have no late payments yet you can think about refinance with a lower interest rate and for that you have to shop a bit.

Thanks
Larry
Posted on: 19th Nov, 2007 02:23 am
Yes I can understand. Homevestors is a company buying ugly properties as they say and then they repair the property and sell off to even first time buyers. But perhaps your property is too good in a condition, which is why, they've rejected it. the best thing as i see is to talk to your lender, see if he can provide you with a seoparate repayment plan so that you can pay off the loan, or else suspend the payments for a certain period to help you recover from the mess.
Posted on: 22nd Nov, 2007 03:46 am
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