I have a bit of a problem. I recently got laid off from my job, and at the same time, noticed that my mortgage doubled due to not having the insurence and taxes in escrow, and not paying them during this period. I am going to re-activate my expired insurence, but my mortgage will still be pretty high for 3 properties. I like to know is there any way of re-organizing my mortgage where it is affordable again. All of my properties are rented, and does have cash flow; I don’t have a job right now, and my credit is not good. Is there any help for a person like me who has 10 properties? Are there any help for investors?
Any info., would be appreciated.
FYI - While being in between jobs, I"ve began writing fictional stories again. I thought that this would be a good time to do it. I managed to write 4 different stories, and is thinking of trying to have them published. Crossing my fingers…
Do the properties cash flow only if you don’t pay the taxes and insurance? If so, then you need to unload your deadwood.
Sell the underperforming properties. You can’t afford to keep them with no source of outside income to subsidize your negative cash flow.
If the properties still cash flow after taxes and insurance, then set up escrow accounts with the lenders so paying the taxes and insurance will be automatically taken care of.
Yes, they do cash flow after taxes and insurance. They are duplexes. My understanding is that the lender would need a certain amount in insurance and taxes already in escrow up front. Because of that, it caused my monthly payment to double. However, if they could re-design the load to where it would include the taxes and insurance and spread out the payments for a longer period this may bring it back close to what I was paying in the past. I don’t want to forclose these properties if possible. I’m hoping there is a program for investors; maybe consolidation, or mortgage re-orginzation. I will be speaking with the lendor today. The may not like the fact that I am currently un-employed…
You need to contact the lender and ask them to spread the escrow repayment out over 24-36 months. This will lower your monthly over head. The other thing you could do is look for a 0% credit card and pay the escrow shortage using the credit card. This will give you time to find a new job, get your stories published, etc…
That sounds like a plan… I’ll see if I could do that with the lender. Wow, the reason why I got the properties so I could live a somewhat stress free life and just write, but that’s becoming more, and more difficult. Hopefully, my life will turnaround for the better…
This will correct itself after one year. Each year, the loan servicer will do an escrow analysis and adjust your monthly payment for the exact amount needed to maintain your escrow at the minimum required level of funding.
Good for you that the lender allowed you to make installment payments to fund your escrow account and did not require an initial lump sum payment to fund your escrow at the required levels from the start.
