Posted on: 28th Apr, 2007 07:47 pm
Hi,
I bought an investment property in Georgia 6 mos. ago. I did it at 100% financing. The problem is that there is no equity in the property, the property is in quite a bit of disrepair b/c it was not completely rehabbed as promised and I'm not in a position to take out a loan to fix. In addition, I can't even find the contractor. Short sale is not a good option right now.
Does anyone have or know of any options that I have to get rid of this property?
I bought an investment property in Georgia 6 mos. ago. I did it at 100% financing. The problem is that there is no equity in the property, the property is in quite a bit of disrepair b/c it was not completely rehabbed as promised and I'm not in a position to take out a loan to fix. In addition, I can't even find the contractor. Short sale is not a good option right now.
Does anyone have or know of any options that I have to get rid of this property?
If the real estate market is down and you are not able to sell it, then you are in a difficult position. Continuing mortgage payments without return on the investment you have made on the property can certainly be difficult. If you are not able to continue the payments then giving the property back to lender using deed in lieu can be one of the options to choose.
Yes, short sale does not seem to be a good idea. This is because the property isn't in a good condition as you have stated and you do not have the funds required for its maintenance. And, if you sell the property even at a price lower than what you owe, I don't think you can make much from the sale. In that case, you may go for a deed-in-lieu.
Through the deed-in-lieu process, you can pass on the ownership rights to the lender so that he can sell the property and retrieve the outstanding balance.
Know more about deed-in-lieu from an article on this topic.
Thanks
Through the deed-in-lieu process, you can pass on the ownership rights to the lender so that he can sell the property and retrieve the outstanding balance.
Know more about deed-in-lieu from an article on this topic.
Thanks