Hi. I’m new to this site. I have a rental property that has been vacant for over a year. We are unable to make payments anymore. Have refurbished the home and have been trying to sell. The market in Mn is very bad right now. I looked into bankruptcy, they said that if the mortgage co. files the foreclosure publicly, I would not be responsible for any defeciencies. (They are threatening this). I have it on the market for less than we owe and no interest. How do I find out how they file? Any suggestions to other options. (Between payments and refurbish we have lost about $32,000 in past year.
Is the rental property in your name or your corporation. The deficienies are the dif between what is owed and what got paid off at short sale. Sorry dont know enought about MN, only florida. bankruptcy wont help, if you cant make your mortgage payments now, what makes you think you can repay during bankruptcy. It only pospones the foreclosure. ONce you ar out of bankruptcy, foreclsoures pick up where they left off. HOpe this helps you
Does the property have any equity in it if so i would refinance using hard equity.Hard money doesnt go on your credit and you can also give the lender deed in leu of forclosure to keep from going to court
The home is in my name. Found out couldnt put in co. name. The home appraised for 240,000 2 years ago, owe 210, listed on MLS for 207,000 and on another site for 199,900. Has been listed for several months, No interest. It is a 4 bed, 2 bath, 2 story, acre lot, nice deck and landscape, basement knotty pine. cant figure out why it wont go. Bankruptcy guy said would have to file chapter 7. I dont know if I should believe him when he says if mortgage co files publicly (i.e. in local paper) that they have no recourse in collecting deficiencies for when they have to sell short sale. Cant find any info for MN. Cant rent, have tried, and that is what got us to this point (very bad renters- never want to do again).
you might have a chance to refi, but lender might have an issue if you are trying to sell.
check comparables in the area for a possible value.
The problem with refinancing is that you want to sell the place, so if you refinance for an even higher mortgage it would even be more difficult to sell because you would have to ask a higer price from a buyer. Also it sounds like you don’t like being a landlord so refinancing will only make it worse all around. Because if you refy then you are definitely stuck with the property. Refinancing might save you in the short run but it will distroy any chance of getting out from under this property. Always be careful with refinancing, it can be very dangerous.
I might try switching realtors maybe a brand new motivated and despirate for money realtor, and offering higher commissions. Also put some ads in the paper and on craigslist. Put ads in grocery stores and signs in the yard. Really make it your mission to sell this place before it takes you down.