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Mortgage default on a rental property

Posted on: 13th Sep, 2010 02:02 pm
I have a 35 acre piece of property in SW Colorado, has a 1700 sf mfg home and 2000 sf garge, fenced, was worth about $350k when appraised before the market crash. I owe $220k on it, had mortgage for over 12 years now.

Turned it into rental property 6 years ago...Have it on the market now, for $300k, but other similar properties going for much less since banks are trying to sell their foreclosed properties I assume. And almost impossible to get loans on mfg homes even though it is on solid concrete foundation/crawlspace.

So, my question.. my tenants are only paying 1/2 the mortgage payment [$800] since one of the couple lost their job, I pay $700/month... and I'm worried if tenants lose their jobs/move out.. I'm stuck... and so thinking about stopping my mortgage payments now, and banking the money.

Have over $100k equity in the place so really hate to lose all the equity I ever gained in my 25 years of buying/selling property, but have to face the facts. May be best to let the property go into foreclosure [I pay Green Tree, I hear they are only a collection company now, not a mortgage company],...

or do you know where I might find a 'partner', someone willing to put in $10k for fixups out there, I would give them equity in the place.. they could even move in, very trendy area of Colorado... near Telluride.
Hi pam!

Welcome to forums!

You can check out if your tenants or friends or relatives are interested in the property. They might help you with $10k in home improvement and you can give them the equity in the property. If you're unable to get any such help, then you can contact the lender for a deed in lieu of foreclosure in order to get rid of the property. However, unless you're delinquent on your mortgage payments, the lender will not accept your request.

Feel free to ask if you've further queries.

Sussane
Posted on: 13th Sep, 2010 08:24 pm
just that GreenTree is no longer a mortgage company, only a collection company from what I understand, and you are correct, they won't tell me what they can do, unless I get several months behind. Its fee simple interest so every day I'm late paying, its like $25... less against principal... conflicted about this one. Trying to work two jobs to cover the mortgage.
Don't want to lose my equity, built up over sale of two prior homes.
TEnants def. do not have good credit nor any funds to help. Maybe I should try to find "Rent to Own" and ask for a chunk up front.
Posted on: 14th Sep, 2010 11:00 am
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