I bought a rental property a few years ago. The neighborhood was decent. Over the years the neighborhood has turned into a war zone (high crime, homes boarded up, many foreclosures). I have had trouble keeping and attracting renters. Everyone knows to stay clear of renting in my area. In the meantime I have a mortgage to pay with little prospects of renting. I have filed 4 police reports for vandalism and home invasion since 2009. The home was invaded twice with renters in the home. There was an adt sign out front. The robbers cut the phone line, broke into the home, turned off the electricity and stole the heating system and copper wiring. I am unable to secure the access door as it wood frame. Yesterday they began ripping the plumbing off the home outside. Police say they cannot patrol my street 24/7. I had one claim in with insurance company but with repeated losses, insurance companies either jack up your rates ot drop you. I am filling out papers with a short sale company as we speak because the mortgage company says they only help if I am in arrears. Has anyone had this situation and what would you do. My discouragement is causing me to just take a loss, ruin my credit and just leave real estate altogether. I would appreciate some solid advise and solutions.
You mean the ADT sign didn’t work? ; )
It definitely sounds like a distressed property. Nobody likes throwing money into a black hole. I’d do whatever you can to cut your losses. If you can have a short sale approved, I’d do it.
It does sound like you have a problem property. You are correct on considering a short sale and you will have to be in arrears with the bank. Once you are behind on your payments your credit will be damaged. A successful short sale will prevent a foreclosure and at least keep that off of your credit report. Your problem will be that you will still need a buyer to make an offer for the bank to approve. I recommend you get it listed for sale with an aggressive price and then lower the price every couple of weeks until you get an offer. Once the bank starts the foreclosure process, you will be racing against the clock. Good Luck
There are many reasons and situations which might create a Financial hardship which may be acceptable to a bank when doing a short sale. Here are just a few:
* Mortgage rate adjustment * Increase in monthly expenses * Need to move because of your job * Reduced Income * Unemployment * Health issues * Separation or Divorce * Medical Bills * Business Failure * Business cutbacks or downsizing * Death of a Spouse * A valid reason you are unable to make your mortgage payment