A Little Help Here - Please!

rswing · Joined: 20 Nov 2008 Posts: 1 1.92 Dollars($)

Hi,

I own 4 investment properties in Arizona. I bought with 5-10% down and have large negative cashflows and each property in worth considerably less than what I paid in 2004-2006. One of the leases expired and since there are so many homes available for rent in the community - I would have to ask for less rent putting me deeper into a negative cash flow situation. The others ones will follow shortly.

I have also spent, to date, $150,000 in equity out of my home that I live in in Arizona to finance this mess. I can't take out any more money out of my home to keep this going. There is no way the markets will recover enough- if at all- to allow me to recoup in the next year or may 10 years!! We're talking a 50% decrease in home prices in this area!! I just want to stop the bleeding.

I assume that the properties are secured only by the properties themselves. In that case, can I assume that the lenders can not come after my savings? retirement? principal residence? Wages? I can handle the loss of credit for 7 to 10 years, but at age 47 the loss of everything would be a burden that I don't want to comprehend. Any info would be extremely appreciated.

Thanks,

RSW

elnoralittle · Posted: Thu Nov 20, 2008 6:44 pm Post subject:

I have a friend that recently moved from Arizona, she has a house she can't sell either.

If you cannot afford this finacially, contact the loss mitigation department of each mortgage holder.
See if you can negotiate with them to reduce what you owe, or discuss with them the options of deed in lie of foreclosure, or short sale.

I see how you are trying to protect your home itself. You are not the only one going through these types of financial issues.

The first step is contacting the lender to see what you can do with the least amount of damage to your credit profile.

It won't be easy, but it's better than just walking away.

And yes, you are correct. The properties themselves are the collateral.

smithsussane · Posted: Thu Nov 20, 2008 9:06 pm Post subject:

Hi rswing!

As far as I know, the retirement accounts are exempt and generally lenders cannot place liens on them. However, they can garnish your wages to recover the deficient amount or can even place liens on your savings account. So as Elnora has suggested, you should first contact the loss mitigation department of the lender and try to sort out the issue.

Feel free to ask if you have further queries.

Sussane

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