I have two investment properties (residential lots) on my personal name and both have separate mortgage. I bought the properties in May 2005. I was paying mortgages until Sep 2008, and am defaulted now for a year. Bank has agreed to following to settle both mortgages (total debt: $250,000):
Pay them $70,000 cash
Sign the dead in lieu of foreclosure for both the properties.
Could you please advice me what I can put in the settlement agreement to make sure it has least impact on my credit. Can I ask for bank to not report is as dead in lieu of foreclosure etc? I have spent couple of months negotiating with the bank and we have agreed to above.
I do not have any equity in properties and prices have gone down a lot, I am not sure if I can even recover one fourth.
Number one question where’s your property and what’s your state law there? You said that both of the mortgaged property is defaulted. If it’s the case then contact any broker or agent. I think you can’t do anything alone.
A scenario me and a associate are working on goes something like this.
Amount of Loan 250,000
Purchase price of 3o yr treasuries for $250,000 in treasuries…that upon maturity pays your debt of $250,000…
Markt pur price of 30 yr treasury usually-25%-25% of $250,0000=62,500
If you have $70k this might be an alternative that allows you to keep your lots and a possible income. Are they rented? Is there an income above and beyond the amount of the mortgage? Where have the payments gone?
Point blank if you have an opportunity to keep to you want to ? If so is there a motivation behind it?This is just more to think about outsde of the norm.
Ask the bank to keep their mouth shut and delete the entries concerning these loans from your credit report as if challenged for inaccuracy.
It is legal for the bank to NOT report information at all;
It’s just that such information has to be accurate… IF they report it in the first place; :biggrin
The credit bureau does have to report it if they have the information however…