I want to weigh my options and hear your advice. I have 2 residential building lots in the Myrtle beach area. Both in resort style communities with pool, clubhouse etc… Both are waterfront (bay) communities. prior to 2005 I had bought and sold a few lots in a matter of months made 15 to 20k profit on each. 2005 hit and I was stuck holding these remaining 2. Interest only loans. Both properties are know about 40% underwater. They have been for sale for 3 years now at a discounted price with absolutely no interest. Properties are held in my name and not LLC. Foreclosing would be a huge personal hit to our great credit. With no rent coming in and $1600 in Interest payments going out the door each month It’s starting to take a tool on me and my family. $$ fights are no fun. What would you do? Thanks
Have you tried to do a loan mod on either of them? With that making home affordable plan done by congress they are dropping the rate as low as 4.25% on a 40 year. And sometimes they even do a BPO on the property and do what is called a special forbearance on them moving a large portion of the loan to the back. So after you pay off the principle you still owe that amount. This is kinda a hard time today with the foreclosure rate as high as it is and property values declining as fast as they are. keep in mind if you can no longer afford these properties A foreclosure looks the worst, followed by a Short Sale and a Deed in lieu will only effect your credit by 45 points. The only other question I would have is the does the lender that wrote the notes on the property still service them or have they sold that to another lender. If they have sold them I would ask that they produce the note. What happens now days is that there were so many lenders that were selling there paper they are not able to produce the notes and sometimes they are haveing to drop that off of the deed simply because they can’t show that they own the debt. Here is a great video on that.
http://www.youtube.com/watch?v=kswEb-iVsms
Hope that gives you some ideas.
Thx. If I’m not mistaken my properties do not qualify for the Government program or 40 year conventional loans because they are land. My mortgages have not been sold - I had to re-finance into 3year Int Only again.