I am an invester in MA. Its my first property, a two family in Worscester. I get great rents 3200.00 per month but I refinanced and am at a little over 100% now and they screwed up my credit by not paying off my original note fast enough. I bought the place for 385 and it appraised at 400, I refinanced at 430 and rehabbed the second floor to get my rents up. I have to get my payments down on this new mortgage because I am not even covering. I checked with a couple of places that offer to refi me every week but when I asked them they came up empty because of the 100% situation thats going on within the industry. I need to add another unit as well but figured I should try and do that with cash.
That’s a drag! Sounds like your best bet is to add the extra unit with cash. That will increase the value and I bet you will not be upside down anymore.
Unfortunately with the late mortgage payments and with scores less then 680, 100% financing isn’t available.
Can’t you dispute the late payments through the credit bureau?
I got a late payment on a bill when I switched banks. I called before my bill due date to switch my auto pay information. They were so slow at switching it that my payment was 30 days late. I disputed it since I gave them the new banking information before my payment was due. That got it removed as a late payment.
Can't you dispute the late payments through the credit bureau?
If you have documentation on letterhead, from the company that reported you late, stating that it was their error.
You can contact the bureaus individually and have them update the reporting. They will have you fax the documentation to them and after they verify it they will post corrections.
Do not expect overnight results. It will take a while for the correction to take place and adjust the score(s)
WOW, that’s a pile of money to pay for a 2-family in Worcester. I hate to say this to you but I think that market is headed for a big correction.
I’m in RI and NOTHING for sale now is even close to cash flowing. The rental market sucks because so many people can’t afford to sell (because they owe more than the house is worth) so rents are actually going down due to increased inventory.
Word to the wise…If it doesn’t make you SOMETHING from day one don’t go near it. There is so much bank owned property for sale in the Northeast it’s scary. You can grab this stuff for literally penny’s on the dollar if you have some cash. (it doesn’t have to be GREEN) Be patient, your first property should be an out of the park home run. If it isn’t you could pay a VERY high price for your real estate education.
“If the offer isn’t insulting, it isn’t low enough”
This place was a home run until I got snookered in the refi. Are you from NE? Two families in the right part of Worcester (ie the west side) have been consistent @ app. 400k. I figured out how to make money with them in spite of the impending correction but I have a bad mortgage. Thanks for the help. This looks like a job for…Cash!
How was it ever a good deal, refi or not?
Left to cover mortgage- $1600/mo
Unless you put down a lot of cash you were probably negative cashflow from the start. Sure maybe you didn’t run into any big ticket issues yet but surely they would come along soon enough and put you in the hole. This was a bad deal from the start.