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negreto
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0.10 Dollars($)
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 Posted: Mon Mar 19, 2007 2:07 pm Post subject: Double foreclosure |
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I bought two homes for investment, or better yet to flip them.
I only put 5.000 down per each and they qualified me. The initial idea was to sell them as soon as they were finished or even before.
They got me a construction loan that matures in 2 weeks, then I have to convert it to a permanent mortgage, the situation I'm facing now is that with the changes of the real estate market I'm upside down in both propreties, they've been on the MLS for 4 months and we haven't received one call. I have to start making payments ($ 2,700 each for a total of $5,400), and I simply cannot afford that. I don't know what to do. How bad is to just go on foreclosure for both properties.
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J. Della Rocca
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0.10 Dollars($)
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| Posted: Mon Mar 19, 2007 2:27 pm Post subject: |
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| Quote: | I have to start making payments ($ 2,700 each for a total of $5,400), and I simply cannot afford that. I don't know what to do. How bad is to just go on foreclosure for both properties.
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You can look to rent them out for the time there is no buyer, after which you sell them off. Foreclosure will have a bad affect on your credit profile so it is best to avoid it if there are other options available. |
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Collett
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0.10 Dollars($)
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| Posted: Mon Mar 19, 2007 5:47 pm Post subject: |
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You had taken a risk which did not result in gains you had expected. Foreclosure will harm your future borrowing capability.
You need to explain to lender that you will not be able to make the payments because of financial problems. He may be able to develop some repayment plan which you can afford.
Collett |
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 helping_user
Joined: 31 Mar 2006
Posts: 720
Location: Hawaii
134.62 Dollars($)
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| Posted: Mon Mar 19, 2007 11:23 pm Post subject: RE: Foreclosure on both properties |
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Welcome Negreto.
Foreclosure on two propeties is indeed something that's going to affect your credit badly. I would advice you to stay away from it.
Did you take help from a real estate agent for selling the properties? Such a person can help you find a suitable buyer. You can also consider offering the property for lease to purchase. This may attract buyers who may rent the property for some years and then purchase it from you.
At least, you can pay off the construction loan, convert it into permanenet loan and make payments using the rent. Later on, you can have the buyer purchase property and also assume your mortgage. You need to inform the buyer and also the lender offering you the permanent loan.
Thanks. |
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linkmanager1
Joined: 09 Mar 2007
Posts: 22
13.66 Dollars($)
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| Posted: Tue Mar 27, 2007 12:14 am Post subject: Avoiding_Foreclosure_of_Your_Home |
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I hv found a very helpful information about foreclosures on "http://loanskey.co.uk/Avoiding_Foreclosure_of_Your_Home.php", i think it will help you.
[Link deactivated as per forum rules. Thanks.]
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