Posted: Wed Oct 31, 2007 10:53 am Post subject: rental properties losing money
We own several rental properties. Things are not really hanging in there, we are less than 30days on our payments, but are behind on our taxes. What's going to happen if we have to let them go? Should we try to work something out with the bank? Will they even negotiate?
HELP _________________ Need help choosing the right loan? Get free consultation from community lenders/consultant
Posted: Thu Nov 01, 2007 10:28 pm Post subject: rental properties losing money
So, you don't mention to where your equity stands on the rentals -- are they 80% financed, or less? Can you 'cash-out refinance' one of them and pay the taxes with the equity? Bring a few numbers to this table. _________________ Chuck Armbruster
Phoenix, AZ
I think Charles, cash-out refinance can be a good option and that will also help him pay the taxes. But this will depend on how much he can borrow based on his equity. _________________ Procrastination is the enemy of your financial sucess
Are you asking about letting the properties go or the taxes?
If you let the taxes slide then they can place a lien on your property and even foreclose. It is a worst case scenario to owe taxes, comparable to owing the bank and getting foreclosed on. I would give the bank which holds your mortgage a call and ask if they have any assitance they could give. Like others said refinancing could help but may just put you in a deeper hole.
If you could provide some additional info including the values, amounts owed, etc. that may help provide some better answers for you. _________________ Eric Matthews