Posted by betty on August 20, 2003 at 22:13:20:
Hello,
Thanks for your input,that’s what I have been thinking.
why do you think that the other suggestions may not work?
investment turning sour - Posted by betty
Posted by betty on August 17, 2003 at 22:16:44:
Hello,
I purchased an investment home some time ago, with the intention of renting it. This has not worked out. I can no longer afford to pay this mortgage. There is not much equity,no one wants to refi. I hate to put a foreclosure on my credit,but see no other way. Rent too steep for most in the area. Any suggestions, anyone?
Re: investment turning sour - Posted by GeorgeF
Posted by GeorgeF on August 19, 2003 at 22:25:14:
“I hate to put a foreclosure on my credit”
I doubt you can just hand the keys to the bank. My guess is that you will still owe the bank any money you don’t pay back unless you are thinking bankrupcy.
I suggest you sell, make sure the realtor understands your situation. When I say sell I mean sell it for what the market is paying not what you think it should get. Once you sell see if the bank will help you with an easy repayment plan for the remainder of whats owed. Also let the bank know you are underwater, they may have some suggestions.
I do not suggest you try some fancy technique that pros use to get yourself out of this. You will likely just dig yourself deeper.
Sorry to say this but this is just the way it is.
Re: investment turning sour - Posted by Trevor
Posted by Trevor on August 18, 2003 at 06:13:29:
Hi,
Why don’t you sell it on a land contract. You can also provide owner financing such as rent to own. I guarantee you will get plenty of calls. Good luck!
Trevor
Re: investment turning sour - Posted by Ronald * Starr(in No CA)
Posted by Ronald * Starr(in No CA) on August 17, 2003 at 22:58:33:
Betty------------
As this is an investment property, not your home, you don’t have to lose it on foreclosure.
Could you sell it yourself, without a broker? You might offer very low down. Then they take over the property with the note in place. Sometime in the future they will have to refinance the property, getting a new loan and removing yours. That might be two to four years in the future. There will be many very rough credit applicants, so be very picky about with whom you do this.
Another way is similar, but does not require deeding the property away. You lease the property to somebody with an option to purchase, again 2-4 years out, when their credit is better. You get some option consideration. You charge higher than the going rent in the area, you charge a higher than average price, as they will actually be buying it in the future, when it should have appreciated.
The first technique is called “subject to” or “subject 2” or “sj 2.” The second is called “lease with option to purchase” or “lease/option” or “lease-option” or “lease option.” Both are discussed extensively on this main board of this CREONLINE.COM website, daily. So you can study them by doing archive searches at the top with those terms in them.
Good investing*************Ron Starr**************