80/20?

Guest 0.10 Dollars($)

My husband and I purchased a home in Florida a year ago. Due to our employment situation we had to move back to Ct. We are renting the house in Florida out, Howerver we are covering about 750.00 out of pocket due to the amount we are able to get for rent. We are in a financial squeeze right now with covering the remainder of the Florida rent and the mortgage of our current home in Ct. We cannot sell the house in FL. The market is terrible and even if we could sell the home in Florida we would not get nearly as much as we bought it for and for what is left of the mortgage. We also have a 3 yr prepayment penalty and to make matters worse we have an 80/20 mortgage. And to add a cherry on top of complexity we currently have a tennant renting with a 2 year lease with option. We simply cannot survive the 2 years. What can we do? Is a Deed in lieu of forclosure an option for us with an 80/20? I must mention that we have gone through a BK 3 1/2 yrs ago. Monthly our income does not cover our monthly bills we are short the amount that we cover of the Florida home. We are not behind on payments yet.

Thanks,
skylark

jenkin7 · Joined: 04 Jun 2007 Posts: 939 140.77 Dollars($)

Hello Skylark,

Is the 80/20 mortgage with the same lender?

Deed-in-lieu of foreclosure might be accepted by the lender if there is no other option, otherwise he might ask you to go for a short sale. I think, you need to have some late payments in order to file a deed in lieu.

If your tenant is carrying a lease-to-purchase option then that is yet another problem. I think you should talk to them stating your situation and end the lease or else, you cannot do a deed in lieu.

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Hi Skylark,

You are in all sorts of financial problems. Ok; never mind. First of all talk to your tenant and make him agree, so that you can go for the deed- in lieu. You can make some late payments also, so that your mortgage lender can agree for the deed-in-lieu.

Thanks,
Larry

gmakerley1 · Posted: Mon Nov 05, 2007 1:47 pm Post subject: 80/20?

I cannot believe someone said "you can make some late payments" to help your cause.

You are in a definite bind, but purposely paying on a delinquent basis so as to leverage with your mortgage holder is pretty silly, to say the least.

I agree that your lease situation is a definite hindrance - is this something you and the tenant can renegotiate? Do you have counsel working with you, or do you have it readily handy? I think that is essential in this situation.

what is the possibility of refinancing the mortgage on your current primary residence to free up some cash (perhaps) and lessen the monthly debt burden?

I am in Connecticut - not sure what that will do for you, but it may be worth the mention.

Caron

Hi Gmakerly and Skylark,

Larry is perhaps saying if there are late payments, only then the lender might agree for deed-in-lieu. Well, I shall agree with you Gmakerly in the sense that if possible, Skylark can do a refinance and cash-out. But for that he needs to do a bit of loan shopping as well.

Skylark, if your monthly income is not enough to support your monthly debt payment, then you need to find out where you can reduce your expenses and possible you may have to redo your budget.

good luck

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