We purchased an "Investment Home" in FLA that we closed on in October 2006. Purchase price was 309K with 10% down. Our 1st mortgage is with EMC at a rate of 8.75% 5 year open arm balance of 259K. 2nd mortgage with EMC at a rate of 13.9% with a balnce of 34K. Our balance has gone up approx 15K since we purchased this property. Our intention was to flip this property right away so we agreed to close on these loans although they were structured differently than we were originally told by our lender. We are just barely making these payments every month & are unable to refinance due tothe fact that phase 3 of this community is now selling at less than what we owe on our current mortgages. We don't know what to do from this point on...any advice would be appreciated...have been reading about short sales, foreclosures, bankruptcy...Help!!! We do live in NY so not sure if the laws are for the state you are a resident in or that the property is in.
HELP...heading towards foreclosure with Investment Prop
Submitted by ella7321 on Fri, 06/20/2008 - 8:26pm.
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Comments:
I would say the first thing is always go to your bank. Depending on how they see things you may have one or more options. If they have similar issues in the neighbourhood they may be more willing to give you more time to try and resolve the problems. If they want to foreclose , you would be wasting your money trying to pay a few extra months if the end result is inevitable.
Thanks for your reply. My husband did do that as our first option. They were no help at all basically. He got the run around from them after being transferred from department to department. Does anyone know anything about EMC mortgage??? They actually transferred him out to CHASE bank??? It was very strange. We have been researching foreclosure attorneys in the area. Our main concern other than the fact that his credit will be ruined is that they can go after our other assets...Not sure if this is true or not but we do have our primary residence in NY & do not want to have our house taken. Also, even though the mortgage is only in his name we were not sure if it affects my credit since we are married??? Any additional comments are greatly appreciated. Thanks!
Ella -
I am not an attorney, so dont have concrete answers to your questions. I work and live in CA and are familiar with the laws here. I doubt there are any cicumstances that can take your home. There are decisions that will need to be made regarding this property and that will depend on your goals.
Send me an e-mail, so we can talk further. I have a friend who works at EMC loss mitigation. He probably can't simply solve your situation, yet, he could give you some concrete options.
BOB
bob@inspiragroup.com
Given the inter-state issue I'm not going to guess at what liability there may be after foreclosure. I will say that if you have other assets you need to fundamentally make a choice between selling immediately for whatever loss you may incur, or be willing to wait until the market recovers (will be years not months).
Given that prices are likely to conitnue down, I would get it listed ASAP with a real estate agent or broker that is experienced with short sales, while simultaneously seeking legal advice as to your liability for a deficiency. If you have other assets and will be liable for the deficiency anyways, your best bet is to get the most you can, as soon as you can.
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