Avoid foreclosure on an Investment Property

Foreclosures, Short Sales, Tax Foreclosures
1

Hi Everybody!

I have a personal situation. I own 3 investment properties in South Carolina and all the loans on them are with WaMu. Recently, I was downsized and had to take a less paying job and on top of that I had to lower the rents on all 3 properties due to slow down and just to keep them occupied. At this rate I am unable to cover the negative cash flow. I have PMI on all three loans. I was wondering if there is a possibility to contact the lender to see if they would a.) lower or drop PMI payment (I am at almost 20% LTV) b.) lower the Interest Rate so I can keep making the payments. I definitely don’t want to just walk away. If anyone had any experience with this please let me know!

Thank you very much.

2

You should sit down with your lender and discuss your options. It is in their best interest to work with you and avoid default/foreclosure. If your at or near 80% ltv then you may be able to convince them to drop the pmi. Or perhaps they will take a lower interest rate for a year or so and you can roll the discount into the loan principal and repay when you eventually sell the properties. Its called creative finance and there is no reason WaMu cannot participate. Good Luck.