I thought that I would post this here in hopes of getting some information and/or assistance. I own a home in a nice area of Los Angeles (HPOZ, craftsman/arts and crafts homes). My home just appraised at $1.3 million. I have two loans; 1st with a traditional lender for $670,000 and a 2nd with a hard money lender for $260,000.
I’ve run into some trouble and need to find a solution that will allow me to stay in the home but I can’t afford the mortgages as they are anymore. Does anyone have any creative solutions? Please post to the board and I will be checking back throughout the day.
Some trouble means that my interest rate went up and my 1st went from $3700 to $5300 per month. My business folded after 6 years so now we’re only existing on my husbands income which is a net $5300/mo until I get my new business off the ground which will take 6-12 months.
you cannot afford it anymore and still want to stay in it?
there is no way (creative or not) to generate money out of thin air on a property that you still wish to control, it seems to me that the only choice is to rent out a part of it, if you did not do so already.
(and shhhh, keep this a secret…
tell you what, if you want to sell the house i might be willing to take it sub2. :evil )
I can’t afford it right now as my business folded. I’ll be in a better position in 6-12 months when my new business brings income but right now we’re only netting $5300/month.
If you haven’t missed any payments yet, you can try negotiating with the bank and see if they will go interest only, or even negitive amortization for 6 months. I don’t think the odds are good, but it’s worth a try.
What people nomally do when they can’t pay their mortgage is to get the place sold as quickly as possible to try to get out before they are foreclosed on.
If you really seriously think you can stay in that house when you can’t afford the mirtgage payment, your hard money lender is going to own your house and you are gojng to end up living under a bridge. He’s not going to be nearly as slow about foreclising as the bank is going to be.
If your $1.3 million appraisal was done for a bank loan, it is very unlikely that your house is worth that much. The banks need a certain price in order to make the laon, and their appraisers will usually come up with that price. It doesn’t mean that is what you would get if you wanted to sell.
if you are sure you’d be able to afford it 6-12 months later…
how much money you need until then to cover your payment?
you more info you provide the better advice people can give you. if it’s a small amount why not get a equity loan at the same bank. haha this sounds very risky
Yes, I’m certain that I will be making an income and can cover the payments in the next 6-12 months.
The 1st $670,000 loan is with a traditional lender. The rate jumped to 8.25% which made my payment increase by $1500. The 2nd is with a hard money lender, $240,000 at 12%. Our mortgage is now about $7500 a month.
Right now our net monthly income is $5300. We have about $2000 in expenses each month bringing our currently total monthly debt to almost $10,000.
1st thing, i just want to point out that you should post this subject under “Beginners” forum topic or maybe “Financing, hard money” , instead of put it under “Sub2, lease option” category. you’ll get a lot more exposure.
I didn’t notice this before.
another thing, i don’t mean to sound like lecturing you, because i am not qualified to do that, and besides it’s none of my business. but you should read this topic
read the 4th comment, it’s posted by fdjake, talking about the habit of saving.
You want to live in a million dollar home and keep that life style, when you (sometimes) have trouble make payments to support that lifestyle. This is not just accidents because you do not have 10k saved in your bank account to help you in times of crisis. hmm…maybe you should do something different?