- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
underwater on a real estate loan
Posted on 3/23/12 at 2:33 pm
Posted on 3/23/12 at 2:33 pm
by about 15k.
i'm ditching the property (not my primary residence).
can anything be done without a debt write-off?
i'm ditching the property (not my primary residence).
can anything be done without a debt write-off?
This post was edited on 3/23/12 at 2:34 pm
2
Posted on 3/23/12 at 2:45 pm to TortiousTiger
quote:Sorry to hear that TT.
underwater on a real estate loan
by about 15k
Couple of Q's:
(1) Have you looked into Home Affordable Refinance Program options?
(2) Is your loan is w/ Fannie/Freddie? If so there may be other options too.
(3) You know about the HUD-approved housing counselors hotline -- 888-995-HOPE (4673) for free advice in dealing w/ underwater mortgages?
Posted on 3/23/12 at 4:49 pm to TortiousTiger
I would echo what has been said above. See if you can get a HAMP modification or a private one through your lender. They probably won't reduce the principle since its not your primary residence, but maybe you can break even renting after a mod.
Whats the fair market value if you don't mind me asking? 15K doesn't sound terrible, unless you had a lot of equity in it.
Whats the fair market value if you don't mind me asking? 15K doesn't sound terrible, unless you had a lot of equity in it.
This post was edited on 3/23/12 at 4:51 pm
Posted on 3/26/12 at 8:13 am to ZereauxSum
HARP does not apply to non owner occuppied homes. actually no goverment program does.
Posted on 3/26/12 at 9:30 am to NC_Tigah
This is some good information. My daughter bought a condo three years ago at $120,000. The developers of the property went bankrupt shortly after she moved in and the development went downhill fast. Some neighbors have tried to sell for as low as $84,000 and could not.
She really wants to relocate because there has been numerous break-ins (she's been lucky so far) and she is scared living there.
Any advice?
She really wants to relocate because there has been numerous break-ins (she's been lucky so far) and she is scared living there.
Any advice?
Posted on 3/26/12 at 11:02 am to hawkeye007
quote:
HARP does not apply to non owner occuppied homes. actually no goverment program does.
I knew a guy a couple of years ago that was renting out a condo and got a mod trough HAMP. But he might have shaded the truth on whether it was his primary residence (he was living there at some point).
Knowing him, it could have been a private modification and he might have just said HAMP.
Posted on 3/26/12 at 11:10 am to ProudLSUMom
quote:
She really wants to relocate because there has been numerous break-ins (she's been lucky so far) and she is scared living there.
Any advice?
For the most part, lenders/services want to see a documented hardship before they entertain an alternative to foreclosure. If your daughter is making the payments OK, then this will be very difficult to do.
Since she just wants out of there (ie no modification) then i think her only alternatives are to try for a short sale (tough to get approved for reason stated above) or stop making the payments and bail.
Either option is going to be painful so she needs to really evaluate her situation to make sure it's worth it.
ETA: Another alternative would be to rent it out. If she cares about her credit, this might be a better option even if she's still coming out of pocket a little bit each month to cover the mortgage.
This post was edited on 3/26/12 at 11:13 am
Posted on 3/26/12 at 11:44 am to ZereauxSum
Mine's underwater by about $50k. Any advice other than foreclosure?
PS. My renters do basically cover my rent, so its not so bad right now...unless they were to leave.
PS. My renters do basically cover my rent, so its not so bad right now...unless they were to leave.
Posted on 3/26/12 at 11:56 am to Htown Tiger
Adding a twist to Htown Tiger's hypothetical... I know a guy with an FHA mortgage that is under about $50K. Negative cash flow from renting is about $400 a month (so he claims so more likely $600 lol).
I couldnt find an official govt program to help him as it is an investment property. Any ideas all mighty ones?
I couldnt find an official govt program to help him as it is an investment property. Any ideas all mighty ones?
Posted on 3/26/12 at 12:16 pm to ZereauxSum
quote:
For the most part, lenders/services want to see a documented hardship before they entertain an alternative to foreclosure. If your daughter is making the payments OK, then this will be very difficult to do.
Since she just wants out of there (ie no modification) then i think her only alternatives are to try for a short sale (tough to get approved for reason stated above) or stop making the payments and bail.
Either option is going to be painful so she needs to really evaluate her situation to make sure it's worth it.
ETA: Another alternative would be to rent it out. If she cares about her credit, this might be a better option even if she's still coming out of pocket a little bit each month to cover the mortgage.
Right, she has no problem paying the mortgage.
We are considering her renting it out but first the sewer treatment issue they are having needs to be fixed. She can't have renters in there with sewer backups happening.
If she can get renters in there it will probably cover her mortgage payment. Then she can just rent something in a more desirable area.
She will walk away from the property only as a last resort.
Posted on 3/26/12 at 12:29 pm to ProudLSUMom
if its a rental property you are stuck with underwater. the programs out there are only for owner occupied homes. as for as short sales go you might as well foreclose because your not going to buy another house for 5years because lenders look at short sales like foreclosure.
Posted on 3/26/12 at 12:36 pm to hawkeye007
quote:
if its a rental property you are stuck with underwater. the programs out there are only for owner occupied homes. as for as short sales go you might as well foreclose because your not going to buy another house for 5years because lenders look at short sales like foreclosure.
I briefly looked at those programs and I don't think she qualifies for any of them. I will look at them more closely in the next few days. Yes, we realize a short sale or foreclosure will mess up her credit for a long time. We don't want her to do that.
I don't even think she could sell it as a short sale. There is a lawsuit against the condo owner's association and the COA also has a lawsuit against the bank that removed their modad. No lender wants to touch that property.
My husband and I want to get her out of there so badly.
This post was edited on 3/26/12 at 12:41 pm
Posted on 3/26/12 at 1:09 pm to hawkeye007
I'll echo what Hawkeye said as far as gov help for investors. As far as I know there really isn't any. In the situations that Htown put forth, there is the possibility of a private modification, but this is at the discretion of the lender and might be tough to pull off since it's not losing money.
Igoringa's hypo might work, but it would take some negotiations. Also keep in mind that the terms probably won't be good with a private mod, since the gov isn't giving the lender anything as an incentive. I would recommend talking to a real estate attorney.
Oh, and one other thing about forclosure vs short sales. Based on the research I've done, the initial ding to your credit is basically the same, but doing a SS could mean that you get back into a house sooner. FHA guidleines state that you can qualify for a new loan 3 years after your short sale closes. I believe it's 4-7 for a foreclosure and the down payment requirement is greater. I suspect that Fannie and Freddie will eventually loosen their restrictions as well.
Also, a lender doing a manual underwriting might look at a SS more favorably as it shows that you made some effort to cooperate with your previous lender.
Anyway, sorry to ramble. Hope this helps.
Igoringa's hypo might work, but it would take some negotiations. Also keep in mind that the terms probably won't be good with a private mod, since the gov isn't giving the lender anything as an incentive. I would recommend talking to a real estate attorney.
Oh, and one other thing about forclosure vs short sales. Based on the research I've done, the initial ding to your credit is basically the same, but doing a SS could mean that you get back into a house sooner. FHA guidleines state that you can qualify for a new loan 3 years after your short sale closes. I believe it's 4-7 for a foreclosure and the down payment requirement is greater. I suspect that Fannie and Freddie will eventually loosen their restrictions as well.
Also, a lender doing a manual underwriting might look at a SS more favorably as it shows that you made some effort to cooperate with your previous lender.
Anyway, sorry to ramble. Hope this helps.
Posted on 3/26/12 at 1:16 pm to ProudLSUMom
quote:
I don't even think she could sell it as a short sale. There is a lawsuit against the condo owner's association and the COA also has a lawsuit against the bank that removed their modad. No lender wants to touch that property.
I'm sorry to hear that. It sounds like a total mess. I can understand why a lender would run the other way.
I would say that she should just rent it out, especially since you feel she can break even on it. If it becomes too much of a pain, she can always look into handing it over to a property mgmt company.
Posted on 3/26/12 at 2:35 pm to ZereauxSum
quote:
'm sorry to hear that. It sounds like a total mess. I can understand why a lender would run the other way.
Yes,it is a mess! State Farm has a lawsuit against the COA for a fire that occurred in one of the buildings. It is a 4 plex and it burned to the ground. 2 of the owners had State Farm for their personal coverage. State Farm is saying the COA had inadequate coverage and is suing them for it.
The funny/sad thing is the COA doesn't have any money. I'm guessing some of that will come out of my daughter's pocket too.
My husband told her not to buy the property because he had a bad feeling about the developers. My daughter has learned a valuable lesson about heeding her dad's advice.
This post was edited on 3/26/12 at 2:37 pm
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News