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Investment Property Mess. Any help, advice or suggestions?

Posted on: 03rd Nov, 2008 08:22 am
I own a personal home, with a value of $250,000, which i can pay the mortgate on with no problem. I also own three duplexes(each valued at 100k), and two rental homes (each valued at roughly 130k). I just had two non pay renters evicted from two of the duplex units, and both of these units now need repair. I also just had one of my rental home tennants leave with no notice, and they skipped on their last payment. I now have no way to make this mortgage payment for this upcoming month. This house needs repairs also at this point totaling up to $2000. I do not have the means to make repairs to this house, and the duplex units to keep them going. I am in way over my head, and i do not know what to do. I have placed the house onto craigslist for now, in hopes it will sell within a week, but i do not see that as a likely situation. I am calling the bank today to inquire about a deed in lieu, but not sure if they will accept that or not. I have two children and a wife, whos lifes i do not want to upset over these investemetns gone wrong. any advice as how to keep this all together without losing everything? Thanks in advance,
hi jeffco!

welcome to forums!

you can speak to the loss mitigation department of the lender and check whether they can offer you a loan modification. in this process, they will offer you a alternate payment plan with easier terms and conditions. if this is not affordable, then you can either go in for a deed-in-lieu foreclosure or a short sale.

feel free to ask if you have further queries.

sussane
Posted on: 03rd Nov, 2008 07:47 pm
hi jeffco!

you can even file a chapter 13 bankruptcy if the lender does not agree on a loan modification, deed-in-lieu foreclosure or short sale. chapter 13 bankruptcy helps in reorganizing the debts. the lender will give you a easy plan through which you will be able to make the payments within 3-5 years. once you start making the payments your credit will also start improving. you can check the following link to know more about chapter 13:
http://www.mortgagefit.com/bankruptcy/chapter13.html

thanks,

jerry
Posted on: 04th Nov, 2008 02:28 am
I feel like its the end of the world with this situation. i am 35 years old. Is there a light at the end of the tunnel? Or is the rest of my life to be consumed with financial struggle due to this? (I dont mean to sound so doom and gloom, im just trying to figure out the reality of this) Thanks
Posted on: 04th Nov, 2008 06:41 am
Hi jeffco!

As the real estate market is low, the lenders will not easily accept a deed-in-lieu or short sale. So its better if you can convince the lender for a loan modification. As of Chapter 13 bankruptcy, though it will affect your credit, it will improve as you start the payments.

Thanks,

Jerry
Posted on: 05th Nov, 2008 12:14 am
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