Posted on: 24th May, 2010 11:27 am
I have a question more specific than what has already been addressed in the forums and online in general.
I have a total of 5 homes. My primary residence, and 4 rental properties, 1 in which I am 50% owner of. The home that I own 50% of is free and clear.
One of the rental homes that I own 100% of is a money pit. My cash flow from is is around $50 monthly. However, it seems to cost me about $500-$1,000 a year in maintenance and repairs.
I have just learned that I will need to invest another $3,000 - $6,000 to either get a new well or have the home tapped into the city line for water. This is an expense I cannot afford. I am already 2 months behind on all 4 or my mortgages so coming up with money is impossible.
In time, I think I can get caught up. But, not if I have to shell out $3-6k in a money pit. I want to try to keep or sell all my other rental properties. Foreclosure on this property feels right. Bankruptcy probably will be more of a headache. I wouldn't mind giving up my other properties except the one I own 50%. My partner would lose his $30k investment if I file.
Can anyone provide any additional insight and hopefully confirm that foreclosure on my one particular property is my best option? What are my long term consequences and else should I consider before letting the property go?
I have a total of 5 homes. My primary residence, and 4 rental properties, 1 in which I am 50% owner of. The home that I own 50% of is free and clear.
One of the rental homes that I own 100% of is a money pit. My cash flow from is is around $50 monthly. However, it seems to cost me about $500-$1,000 a year in maintenance and repairs.
I have just learned that I will need to invest another $3,000 - $6,000 to either get a new well or have the home tapped into the city line for water. This is an expense I cannot afford. I am already 2 months behind on all 4 or my mortgages so coming up with money is impossible.
In time, I think I can get caught up. But, not if I have to shell out $3-6k in a money pit. I want to try to keep or sell all my other rental properties. Foreclosure on this property feels right. Bankruptcy probably will be more of a headache. I wouldn't mind giving up my other properties except the one I own 50%. My partner would lose his $30k investment if I file.
Can anyone provide any additional insight and hopefully confirm that foreclosure on my one particular property is my best option? What are my long term consequences and else should I consider before letting the property go?
Hi brucedye!
Welcome to forums!
Rather than foreclosing the properties, you can apply for a deed in lieu of foreclosure. Though the credit effects would be similar to that of a normal foreclosure, you won't be liable for the deficient balance resulting from the sale. The lender will not come after you for the deficient amount and thus, the property which you won free and clear will also be safe.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
Rather than foreclosing the properties, you can apply for a deed in lieu of foreclosure. Though the credit effects would be similar to that of a normal foreclosure, you won't be liable for the deficient balance resulting from the sale. The lender will not come after you for the deficient amount and thus, the property which you won free and clear will also be safe.
Feel free to ask if you've further queries.
Sussane