Posted on: 24th Mar, 2009 01:50 pm
I’m have a baby and my wife and I won’t be able to afford my houses in a few months. What can I do?
I have 5 rental properties and with the market the way it is I can’t afford them anymore.
I am upside down ~$40k on two wellsfargo loans and I have adjustable rates on them.
Another one I have a $75k HELOC of credit on and I’m ~$40k upside down on this one as well.
The rentals are in my name so if I stop paying will it affect my wife’s credit?
Will the banks work with me to reduce principle? Do I need to stop paying so they will work with me?
How should I handle the house with the big HELOC? Should I just stop paying it and keep playing the 1st mortgage?
What would you do?
More details about my homes:
1. rate=6.275% loan=$185k worth=$145k rent=1000 payment=$1300
2. rate=4.750% loan=$125k worth=$085k rent=$800 payment=$800 rate is adjustable and will change in 15 months.
3. rate=4.375% loan=$085k worth=$120k rent=1100 payment=1200 HELOC=75k min_payment=$300
4. rate=6.000% loan=$105k worth=$135k rent=$1000 payment=$1000
5. rate=5.250% loan=$100k worth=$110k rent=$1000 payment=$900
6. rate=5.125% loan=$205k worth=$300k primary payment=$1700
Thanks for any help! As you can see I need it =/
I have 5 rental properties and with the market the way it is I can’t afford them anymore.
I am upside down ~$40k on two wellsfargo loans and I have adjustable rates on them.
Another one I have a $75k HELOC of credit on and I’m ~$40k upside down on this one as well.
The rentals are in my name so if I stop paying will it affect my wife’s credit?
Will the banks work with me to reduce principle? Do I need to stop paying so they will work with me?
How should I handle the house with the big HELOC? Should I just stop paying it and keep playing the 1st mortgage?
What would you do?
More details about my homes:
1. rate=6.275% loan=$185k worth=$145k rent=1000 payment=$1300
2. rate=4.750% loan=$125k worth=$085k rent=$800 payment=$800 rate is adjustable and will change in 15 months.
3. rate=4.375% loan=$085k worth=$120k rent=1100 payment=1200 HELOC=75k min_payment=$300
4. rate=6.000% loan=$105k worth=$135k rent=$1000 payment=$1000
5. rate=5.250% loan=$100k worth=$110k rent=$1000 payment=$900
6. rate=5.125% loan=$205k worth=$300k primary payment=$1700
Thanks for any help! As you can see I need it =/
hi river,
the way the market is behaving, this has become a common rpoblem with many like you. i think the best option for you would be to go for a loan modification program. you should talk with the loss mitigation department of wellsfargo and work out a modification plan. you can even send them a hardship letter explaining your current situation. under the modification plan, they can reduce the principal as well.
generally, lenders do not agree to modify unless you are behind on your loan. but this is where a hardship letter would be handy. since the rentals are in your name, your wife's credit won't get affected. as far as the heloc is concerned, first try and talk with the lender, and if nothing works, you may have stop making payments and use the cash to be current on the modified repayment plan.
thanks,
jerry
the way the market is behaving, this has become a common rpoblem with many like you. i think the best option for you would be to go for a loan modification program. you should talk with the loss mitigation department of wellsfargo and work out a modification plan. you can even send them a hardship letter explaining your current situation. under the modification plan, they can reduce the principal as well.
generally, lenders do not agree to modify unless you are behind on your loan. but this is where a hardship letter would be handy. since the rentals are in your name, your wife's credit won't get affected. as far as the heloc is concerned, first try and talk with the lender, and if nothing works, you may have stop making payments and use the cash to be current on the modified repayment plan.
thanks,
jerry
Thanks for the great advice Jerry!
I'll submit my hardship letter today.
I'll keep you posted on how things progress.
I'll submit my hardship letter today.
I'll keep you posted on how things progress.
Hi river,
That is a good piece of advice, indeed.
Loan modification seems to be a very good option for you. Apart from a hardship letter, you will be required to submit a financial statement of your monthly income and expenses. Make sure you show them you make just enough income to afford the modified repayments. Showing just a bit too much or too little income can ruin your chances of qualifying for Loan Modification.
That is a good piece of advice, indeed.
Loan modification seems to be a very good option for you. Apart from a hardship letter, you will be required to submit a financial statement of your monthly income and expenses. Make sure you show them you make just enough income to afford the modified repayments. Showing just a bit too much or too little income can ruin your chances of qualifying for Loan Modification.