Posted by Rita on July 30, 2001 at 22:04:11:
My second mortgager says they won’t foreclose because to do so, they would have to pay off the first and they don’t want to risk losing more money if we go bankrupt and they end up selling the house at a huge discount. I am paying on the first to keep them from foreclosing. I make small payments to the second lender- $200 at a time but they still are not crediting my account but I’m doing to show good intent as suggested.
Upside Down in Michigan II - Posted by Rita
Posted by Rita on July 30, 2001 at 19:48:57:
I am still in need of advice. I have a house we’ve had on the market for 2 years. We have $250K invested and owe $270K. The appraisal from 2 years ago is $275K. We have fallen behind because of kids in college and ill parents. We have good incomes but can’t unload this house conventionally. I ran an ad in the local paper as lease/option but got no response. The bankers are anxious for us to do something. We are behind 1 payment with 1st mortgage (owe $197K) and 3 payments behind with 2nd (owe $73K) The second lender knows they have the most at risk and keep asking if we are filing bankrupcy. Since I have tried with 2 ads re: l/o, not much interest. The realtors have our asking price to $250K and still no lookers for over 90 days. The banks suggest we try to sell by owner but we have also tried that. What should the next steps be? The realtors tell me that in the whole county in the past 4 months, only 4 homes have sold in the $250-300K range and none in my immediate area. Sure sounds like a recession. Thanks again for your input!
Re: Upside Down in Michigan II - Posted by Blane (MI)
Posted by Blane (MI) on July 31, 2001 at 10:27:21:
Hi Rita,
If memory serves me correct, was Michigan Andy trying to help you with a mortgage company or something else? And if so, are you in the Muskegon area somewhere? If you are, something like “Rent to Own” will work a lot better than L/O in a Chronicle ad, methinks.
If yes to Muskegon area, which part? I grew up in the area and am familiar (was there last week in fact). Not sure if I can help, and you’ll get good advice from Phil and JohnBoy, but if you could specify your area either here or privately, could maybe give it a whirl. Good luck.
Blane
Re: I live in Michigan…call me - Posted by Brian M. Powers(MI)
Posted by Brian M. Powers(MI) on July 30, 2001 at 22:51:47:
Rita:
Call my pager @ (248) 261-9957 and leave a number where I can call you at. Maybe I can help you.
Brian
Re: Upside Down in Michigan II - Posted by phil fernandez
Posted by phil fernandez on July 30, 2001 at 20:15:45:
Don’t advertise lease/ option. Many people don’t understand the phrase. Instead try Rent to Own.
You also could sell your home subject to your existing mortgage. Advertise " small downpayment " with the small down going to get your back mortgage payments caught up.
As you mentioned the 2nd mortgage holder is out there with big exposure. Maybe they’d consider discounting the 2nd. In turn you could offer the house for much less with the offset from the discounted 2nd. Example : if the holder of the 2nd is willing to take $30,000 cash, all you’d have to sell the house for is $197,000 plus the $30,000 or $227,000. Would $227,000 attract a buyer in your market for your house.
Re: Upside Down in Michigan II - Posted by JohnBoy
Posted by JohnBoy on July 30, 2001 at 21:21:32:
Sell it subject to her existing mortgage? Now, Phil, would you sell one of your properties that way??? 
Sell it on contract for deed and retain legal title until the buyer pays it off!
If she can find a buyer in her area that can handle the payments on this thing, she can make some nice change from this! If that doesn’t pan out then move on to other options.
Even though she’s down on the payments, if she pays anything it should be on the second to get them caught up some. She’s only down on one payment on the first, that gives her some time to do something before they start with any foreclosure process. Just get the 2nd caught up some to keep they from starting anything, then from there do a little juggling between the 1st and 2nd to stall them off until she can find a buyer.
It seems like she has some room to move around with this some. It’s just a matter of finding a buyer for this price bracket in her area.
A little sprinkle of the right type of ads and maybe she can get that phone to start ringing!