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upsetmomma
Guest
0.10 Dollars($)
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 Posted: Thu Mar 20, 2008 8:12 am Post subject: help - need advice |
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My husband and I have three properties in mid-Florida orginally purchased as lease options. All the optionees have dropped out and we went to renting the properties at a substantial shortfall and incredible drain on our budget. They have decreased substantially in value, we do not live where the properties are, and we continue to lose tennants. The interest rates are high on two of the properties (due to second mortgages). The current assessed value of the properties is 20 to 60,000 less than the balance on on the loans. What is your advice?
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 larry
Joined: 27 Jun 2007
Posts: 3328
473.40 Dollars($)
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| Posted: Thu Mar 20, 2008 11:57 am Post subject: |
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Hi,
Welcome to the forum.
If you do not stay on those properties and also cannot afford to make the mortgage payments, then I think it will be better to sell off those properties where you don't stay because these will ultimately hurt your credit and increase your debt.
Talk to your lender and see what he says about it.
Best of luck,
Larry |
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fireyone_02
Joined: 20 Mar 2008
Posts: 281
2.17 Dollars($)
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| Posted: Thu Mar 20, 2008 3:21 pm Post subject: |
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| Yes but as she stated thevalues are 20-60 000 less than what is owned on the loans. If she sells she still has to come up with the difference. Is this correct or am I misunderstanding the question? |
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larry
Joined: 27 Jun 2007
Posts: 3328
473.40 Dollars($)
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| Posted: Thu Mar 20, 2008 3:33 pm Post subject: |
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Hi fireyone,
You are right. She will have to pay if the sale price is lesser than the amount she owes. But it is better than going into foreclosure because foreclosure will have a huge negative effect on her credit and in that case also she will have to pay if the sale price is lesser than the sale price. So it will at least protect her credit score.
Feel free to ask if you have any further questions.
Best of luck,
Larry |
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gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 1177
Location: bloomfield, ct
14.68 Dollars($)
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| Posted: Fri Mar 21, 2008 8:37 am Post subject: |
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housing prices in florida have taken a big hit, undoubtedly.
frankly, from my standpoint, it makes the most sense to hold on as best you can, provided you may be able to find a responsible group of tenants instead of the apparent ne-er do wells you have found so far. perhaps engaging a management company to deal with your properties and your tenants would be a viable solution.
having the properties be a continual drain on your resources would seem to be counter-productive, so selling (even if it means at a loss) may end up being your best all-around bet.
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George M. Akerley
Senior Loan Officer
Freedom Mortgage Corporation
37 Jerome Avenue
Bloomfield, CT 06002
860-286-0444 |
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