Very desperate!! Need help fast!!

I’m in a terrible situation. I live in Texas. I have 5 investment properties in Boston. All are 2-3 family properties. The plan was to have them rented and then do condo conversions. I partnered with a real estate company on these properties. They agreed to locate tenants, manage the properties, collect the rents, and make my mortgage payments on my behalf. I made a huge mistake by agreeing to partner with them. The deal was I would purchase the properties and they would rebate me enough cash at closing to carry the mortgage payments for 18-24 months. I agreed to let them keep the cash so they could make the payments on my behalf. I know, huge mistake. Well, they have failed to make both the May and June payments. I’m now scared to death!! They keep telling me they will have the payments caught up by the end of this month but I’ve now lost total confidence and trust in them. I need to get out of these properties fast and don’t know what to do except find a realtor to list them for me. Does anybody have any advice? I’ve been in contact with the lenders to let them know what is going on but they insist that if payments aren’t caught up by the end of the month, they will begin the foreclosure process. I’m absolutely terrified and don’t know what to do. I hope there’s a good real estate expert out there who can assist me with some good advice. I’m leveraged at 95-100% LTV on each of these properties. Can I negotiate my own short sale with each lender? I just want out but I need time to list them and find buyers. In the meantime, I won’t be able to make the monthly payments while it is listed. I’m hoping the lenders will allow me to have some time to find buyers. Will I need to file bankruptcy? I don’t want my personal residence or my other assets to be garnished. I also have a regular job and don’t want my wages to be garnished. I’m so stressed right now it hurts. I have a lovely wife and 2 young kids and don’t want them to be hurt by my stupidity. I’m 100% responsible for this and I really need to find a solution. I hope somebody out there can help me. Thanks so much. Sorry for the long rant…

Thanks. I will give them a call tomorrow.

If anybody else would like to add anything to my help list, please feel free.

So how does it work? I won’t be able to meet the monthly payments while we go through the short sale process. Will the lender allow me time to locate a buyer?

First Pray. Then get a hold of all the tenants and have the rents sent to you. Get a different landlord now ! Call 3 local realtors and have them do drive bys and take photo’s, analyze each property. have them check to see if they are occupied. How do you feel about a little "vacation " time in Boston ? Be proactive with the management, they need to be replaced , it appears. The buildings may not need to be sold to cure this problem, maybe new management ? Post this on the lanlording forum here. There are a couple of seasoned Landlords there that may help. Take charge not the exit,
Hope this helps, Darin

Thank you, Mark. I just left you a message at your office.

The management company did finally come up with the May payments but still owe the June payments and the late fees for May. They have until the end of this week to get those paid or my mortgages will be delinquent again. They tell me the payments will be made but I just don’t trust them. I guess I’ll find out in a few days.

To make matters worse, I had a couple of realtors drive by the properties and check on them. They discovered that the properties are all completely vacant!!! No tenant income has been generated in over 4 months. That explains why they were late making my mortgage payments. They allege that one of their former employees embezzled hundreds of thousands of dollars from their bank accounts, which crippled their business. I made it clear they are still responsible for my properties and the funds I entrusted to them. They agree but can only tell me they’re sorry and they’re trying hard to find a solution.

The stress is so painful. I’m never doing this again!!! I will never trust anybody to make payments on my behalf again. I just need to get rid of these properties. I’m calling all the lenders first thing on Monday to explain the situation and try to negotiate a workable solution. Hopefully, they will allow me time to market and sell these properties.