FB turned landlord

[Tavo]

I’ve been a lurker for quite some time now and since this has recently become an “advice” site, I thought I’d give it a whirl. Hit me with what you’ve got. Believe me, I’ve put myself through far worse than whatever you have to say at this point. Who knows, maybe this will serve to be a lesson to someone out there.

In 2004 I was your classic, “honey we should buy now or we’ll get priced out of the market” dreamer. Since my wife and I had just moved to San Diego and didn’t know where we would set-up long-term, we bought a nice condo conversion in downtown. The idea was to live in it for a couple of years but hold on to it as an “investment” (say 10-15 yrs). After all, property was appreciating like internet stocks in 1998 (that should have been my first clue). Boy, I was convinced that while San Diego is not Manhattan, you can’t replicate this weather and people were going to flock to this new hip urban paradise. I figured that even if my property didn’t cash flow positive after I rented it out, the yearly appreciation would make up for it. Ha!

Anyway, as a way to “protect” myself I did get a 30 yr fixed loan at sub 6% (I had to fire my first broker who kept pushing the I-O loans) and bought a “class C” condo conversion worth less than 2x my combined yearly income. Of course, I went for the 100% financing option. Hey man, money is cheap, why not leverage as much as I can?

By late 2006 my wife and I were busting out of our “condo” and needed to move on. Unfortunately, at this point the market was getting weaker, but shit hadn’t hit the fan just yet (i.e. no talk of the CDO/CMO mess, no defaults/ foreclosures en mass, and no recession). While we may have sold at a small loss, I wanted to see this investment out. After all, investments go up and they go down right. I was still sold on the long term prospects of San Diego so we were sticking to the plan.

Since I am a bit of an MLS junkie, I was excited to start looking for a house again. This time I was going to get a “deal” on a Craftsman in North Park. This was going to be our long term home so I was ready to deal with a slight downturn in the market. However, since I was convinced of the “temporary” downturn I was not going to buy until I got a deal (at least 15% off the list price).

I wrote a few lowball offers with no luck. Folks were still holding pretty tight, as many still are. Then in early 2007 my realtor said she had the “in” on a short sale in Morely Field! Remember, at this time short sales were still a little new to everyone. It took us 5 months to finally work through the short sale with the bank, but we got the house! To top it off, we got it for 20% less than what the previous owner purchased it for. This guy was a flipper and made some serious additions to the house. Unfortunately, he couldn’t keep up with the payments. Oh well, his loss was my gain.

Now, here I am in Q1 of 2008 (9 months later). My condo has now dropped about 20% in value and I’ve lost all the “equity” in my current home (this, I guess, I expected). My condo negative cash flows about $1k per month (ouch!), and I don’t have cash to unload it. Even if I did, I prefer the slow bleed. Renters are good, but that is just one of many variables I have to deal with.

So, if you housing bears (realists) could write an end to this script, what would it be? Better yet, what would you do to prepare if you were me? Essentially, I am trying to figure out what I’m in for financially with this depreciating asset around my neck. I figure that if I prepare for the worst case, I can’t go wrong any longer. I’ve considered walking on my condo, but I refinanced into a lower rate loan which may now be non-recourse. I haven’t given this a whole lot of thought or research because it’s just not the right thing to do IMO. However, in a serious pinch, who knows. Thanks for the replies and advice.

Tavo

[Anonymous]

Just a couple of comments before those a lot more knowledgeable about the market weigh in.

First, let’s cut the sh*t. Why are you asking about walking if you don’t think it’s the right thing to do?? My point is, you HAVE thought about walking and that’s exactly what you’re going to do if it’s in your own best interest. Can you afford the 1k a month? Even if you can, if you can get out of it, you’re gonna walk. Are you asking for permission?

If the loan is non-recourse, you’re screwed.

[Tavo]

No, not asking for permission. If that’s what I was asking for I’d go straight to “youwalk.com” or something like that. While this is currently a very bad investent for me, I don’t want to screw up my credit. Of course, if it comes to feeding my family or walking, yea I’d walk. Thank god I’m not in that position and can afford the $1k loss. Thanks for the insightful response….

[Anonymous]

Ok, you just said you don’t want to mess up your credit. However, if the loan is non-recourse and you walk, you mess up your credit. So what are you asking then?

You just said you can afford the $1k a month loss by renting it out. So, what are you asking then?

We both agree it was a bad investment.

If your loan was non-recourse, you could dump the house, come out smelling like a rose and GET OVER. But it’s not, so that’s not gonna happen.

Cut the sh*t please.

[blue_sky]

I’d stick it out.

The key is to protect yourself. You do not want to be forced into a sale / bankruptcy here. This means some things:

1. Try to stay in town. Managing property remotely will increase your costs substantially.

2. Make sure you have a cash cushion.

3. Price your rental slightly low. This may not make sense at first, but here’s why: You CAN’T afford much vacancy or a bad tenant that damages your unit. By pricing slightly low and advertising right (and treating your tenant right) you will be able to select the best tenant you can, which minimizes the risk of: Bounced checks, disappearing tenants, damaged unit, etc. I’ve had all of them. And when you have > 20 units it’s part of life. YOU have all your eggs in one basket, so guard the basket! Good tenants are out there, but they have their choice of rentals and you must compete.

[Tavo]

Thank you! These are the type of comments I’m looking for.

[Tavo]

Thank you! These are the type of comments I’m looking for.

[Tavo]

Thank you! These are the type of comments I’m looking for.

[Tavo]

Thank you! These are the type of comments I’m looking for.

[Tavo]

Thank you! These are the type of comments I’m looking for.

[blue_sky]

I’d stick it out.

The key is to protect yourself. You do not want to be forced into a sale / bankruptcy here. This means some things:

1. Try to stay in town. Managing property remotely will increase your costs substantially.

2. Make sure you have a cash cushion.

3. Price your rental slightly low. This may not make sense at first, but here’s why: You CAN’T afford much vacancy or a bad tenant that damages your unit. By pricing slightly low and advertising right (and treating your tenant right) you will be able to select the best tenant you can, which minimizes the risk of: Bounced checks, disappearing tenants, damaged unit, etc. I’ve had all of them. And when you have > 20 units it’s part of life. YOU have all your eggs in one basket, so guard the basket! Good tenants are out there, but they have their choice of rentals and you must compete.

[blue_sky]

I’d stick it out.

The key is to protect yourself. You do not want to be forced into a sale / bankruptcy here. This means some things:

1. Try to stay in town. Managing property remotely will increase your costs substantially.

2. Make sure you have a cash cushion.

3. Price your rental slightly low. This may not make sense at first, but here’s why: You CAN’T afford much vacancy or a bad tenant that damages your unit. By pricing slightly low and advertising right (and treating your tenant right) you will be able to select the best tenant you can, which minimizes the risk of: Bounced checks, disappearing tenants, damaged unit, etc. I’ve had all of them. And when you have > 20 units it’s part of life. YOU have all your eggs in one basket, so guard the basket! Good tenants are out there, but they have their choice of rentals and you must compete.

[blue_sky]

I’d stick it out.

The key is to protect yourself. You do not want to be forced into a sale / bankruptcy here. This means some things:

1. Try to stay in town. Managing property remotely will increase your costs substantially.

2. Make sure you have a cash cushion.

3. Price your rental slightly low. This may not make sense at first, but here’s why: You CAN’T afford much vacancy or a bad tenant that damages your unit. By pricing slightly low and advertising right (and treating your tenant right) you will be able to select the best tenant you can, which minimizes the risk of: Bounced checks, disappearing tenants, damaged unit, etc. I’ve had all of them. And when you have > 20 units it’s part of life. YOU have all your eggs in one basket, so guard the basket! Good tenants are out there, but they have their choice of rentals and you must compete.

[blue_sky]

I’d stick it out.

The key is to protect yourself. You do not want to be forced into a sale / bankruptcy here. This means some things:

1. Try to stay in town. Managing property remotely will increase your costs substantially.

2. Make sure you have a cash cushion.

3. Price your rental slightly low. This may not make sense at first, but here’s why: You CAN’T afford much vacancy or a bad tenant that damages your unit. By pricing slightly low and advertising right (and treating your tenant right) you will be able to select the best tenant you can, which minimizes the risk of: Bounced checks, disappearing tenants, damaged unit, etc. I’ve had all of them. And when you have > 20 units it’s part of life. YOU have all your eggs in one basket, so guard the basket! Good tenants are out there, but they have their choice of rentals and you must compete.

[sdnerd]

What are the purchase prices?

If you re-financed the condo, it’s almost surely recourse now. Have you re-financed the house and/or do you enjoy living in the house?

How far under-water you are makes a difference on the advice you are going to get most likely. You are probably going to get creamed on the Condo, but the house may not bee too horrible depending on what you actually paid in ’07.

More details.

[sdnerd]

What are the purchase prices?

If you re-financed the condo, it’s almost surely recourse now. Have you re-financed the house and/or do you enjoy living in the house?

How far under-water you are makes a difference on the advice you are going to get most likely. You are probably going to get creamed on the Condo, but the house may not bee too horrible depending on what you actually paid in ’07.

More details.

[sdnerd]

What are the purchase prices?

If you re-financed the condo, it’s almost surely recourse now. Have you re-financed the house and/or do you enjoy living in the house?

How far under-water you are makes a difference on the advice you are going to get most likely. You are probably going to get creamed on the Condo, but the house may not bee too horrible depending on what you actually paid in ’07.

More details.

[sdnerd]

What are the purchase prices?

If you re-financed the condo, it’s almost surely recourse now. Have you re-financed the house and/or do you enjoy living in the house?

How far under-water you are makes a difference on the advice you are going to get most likely. You are probably going to get creamed on the Condo, but the house may not bee too horrible depending on what you actually paid in ’07.

More details.

[sdnerd]

What are the purchase prices?

If you re-financed the condo, it’s almost surely recourse now. Have you re-financed the house and/or do you enjoy living in the house?

How far under-water you are makes a difference on the advice you are going to get most likely. You are probably going to get creamed on the Condo, but the house may not bee too horrible depending on what you actually paid in ’07.

More details.

[Tavo]

Credit get screwed if you default on a loan (recourse or not). Like I said, I can afford the payment and don’t want my credit to get screwed. So, no, I’m not considering that option at this point. Seriously, you are reading into my last statement way too much.

[Anonymous]

Submitted by Tavo on March 28, 2008 – 4:16pm.

Credit get screwed if you default on a loan (recourse or not). Like I said, I can afford the payment and don’t want my credit to get screwed. So, no, I’m not considering that option at this point. Seriously, you are reading into my last statement way too much.

What are you asking then?…

[Tavo]

marion,

Looking for constructing advice NOT related to a default.

Sd Nerd

“What are the purchase prices?”
350k for the condo and $550k for the home (3 bed 3 bath 1,650 sq ft Craftsman with a 6,500 sq ft lot in Morley Field)

“If you re-financed the condo, it’s almost surely recourse now. Have you re-financed the house and/or do you enjoy living in the house?”
Yes, love living in Morley Field and have a 7 yr Option-Arm at 6%. I plan on being here for a long time (maybe my last home). Reason I got the Option-Arm was if I got in real cash flow pinch (lost job etc.), I have the option to pay the I-O. I need the flexibility just in case but am making the P&I. I have not “re-fied”

[Tavo]

I meant “constructive” advice

[IONEGARM]

** THIS IS NOT LEGAL ADVICE **

If they pursue a trustee sale they give up the right to go after you for the difference. So it won’t matter if it is recourse or non-recourse. (check with a lawyer, I am not one, nor should I be listened to)

There are very few judicial foreclosures done in California and for a dinky condo in SD they probably wouldn’t bother (I say probably just so you don’t think it is a definite thing, but ask around about how many judicial foreclosures are done).

Depending on how convinced you are things are going south you could stop paying on everything and save your duckets (it’ll be 4 months minimum if not more of savings) and try again in 2 years OR renegotiate with loss mit on your current house or condo. The more contact you have with your servicer the more choices you will be aware of.

Just throwing out ideas. I’d call your servicer and see what they offer.

Other ideas include short sales or short refis (might be able to get the condo cash flow positive with the right loan).

[patientlywaiting]

Tavo, I’m going to write the end of the script.

(Just joking).

Two years from now, you’ll be back here writing that you lost your job in the recession and that you’re about to lose your investment as well as your North Park house. You’ll want a bailout and you’ll look to deflect your irresponsibily onto the illegals aliens and the terrorists in Iraq.

California will pass Proposition 187#2 and we’ll invade Iran.

Were’re then all screwed.

*

In all seriousness, If I were you, I’d sell the condo now and take my lumps. Prices have a long way to go. Your North Park house may go down to $300k.

[Sandi Egan]

Maybe it will be possible to negotiate a short sale with the bank(s)? I don’t know if they’d do that before you become delinquent, though.

Just out of curiosity, what do you need good credit for?

[Tavo]

Sandi Egan,

I agree, I doubt the banks will negotiate with a “good” borrower until they fall behind and are forced to. Maybe the housing crisis will encourage banks to do this at some point, but I’m not holding my breath.

In regards to credit, I guess it’s really just a matter of self-respect. At this point, I I’ve come to the realization that anything I buy will be in cash for the next few years.

PW,

Thanks for the dire outlook. I just gave my tenant a call to make sure he is comfy and enjoying San Diego.

[La Jolla Renter]

Why do you really need good credit if you like your house and plan to stay there for 5+ years?

In seven years you have your good credit back and over a 100k in savings from not having negative cash flow of 1k a month.

Lots of filthy rich people out there with shitty credit, and lots of poor people with good credit.

I am not promoting any particular course of action for you, just playing a little devils advocate.

If I were in a home I planned on staying in for several years, I would gladly sell my 800 score for a 100k.

[La Jolla Renter]

Why do you really need good credit if you like your house and plan to stay there for 5+ years?

In seven years you have your good credit back and over a 100k in savings from not having negative cash flow of 1k a month.

Lots of filthy rich people out there with shitty credit, and lots of poor people with good credit.

I am not promoting any particular course of action for you, just playing a little devils advocate.

If I were in a home I planned on staying in for several years, I would gladly sell my 800 score for a 100k.

[La Jolla Renter]

Why do you really need good credit if you like your house and plan to stay there for 5+ years?

In seven years you have your good credit back and over a 100k in savings from not having negative cash flow of 1k a month.

Lots of filthy rich people out there with shitty credit, and lots of poor people with good credit.

I am not promoting any particular course of action for you, just playing a little devils advocate.

If I were in a home I planned on staying in for several years, I would gladly sell my 800 score for a 100k.

[La Jolla Renter]

Why do you really need good credit if you like your house and plan to stay there for 5+ years?

In seven years you have your good credit back and over a 100k in savings from not having negative cash flow of 1k a month.

Lots of filthy rich people out there with shitty credit, and lots of poor people with good credit.

I am not promoting any particular course of action for you, just playing a little devils advocate.

If I were in a home I planned on staying in for several years, I would gladly sell my 800 score for a 100k.

[La Jolla Renter]

Why do you really need good credit if you like your house and plan to stay there for 5+ years?

In seven years you have your good credit back and over a 100k in savings from not having negative cash flow of 1k a month.

Lots of filthy rich people out there with shitty credit, and lots of poor people with good credit.

I am not promoting any particular course of action for you, just playing a little devils advocate.

If I were in a home I planned on staying in for several years, I would gladly sell my 800 score for a 100k.

[Anonymous]

Self-respect? lmao. Yeah, right. When it comes to losing a huge chunk of money, principles (i.e. self-respect) have a way of taking a back seat.

Tavo, I’m not trying to give you a hard time, so I’ll cease on this subject because I can be annoying at times. I just find it hard to believe that you would continue to take a 1k loss for the foreseeable future and several years beyond that in reverence to your self-respect if there was any way you could use the system and get out of this.

Could you benefit if you put that 1k into an investment that gives you a nice return on your money? Think about you and your family. In the end, self-preservation is going to win out over your so-called “self-respect”. You know it and and I know it. That’s what I meant by “cut the sh*t”.

[Tavo]

Marion,

No worries about the “prickly” responses. I need to hear it.

So, what would you do if you were me? Please don’t say that you wouldn’t be stupid enough to put yourself in this situation. That does me no good.

Also, you all assume that my credit will only suffer. Apparently a recourse loan is exactly what it means. I may be pretty f*cked…

[Anonymous]

Tavo, no, I’m not going to say anything so arrogant as I wouldn’t put myself into the same situation. We all makes mistakes.

How much equity have you lost in your current resident? As far as the condo goes, you’re already losing 1k a month, who knows when the market will turn around to the point where you are not losing that kind of money. Can you really afford it like you say? If you can’t, you need to dump it yesterday.

What I would do? If it were me, I would dump the condo (don’t know how much you paid for it though). As far as the house, if you didn’t purchase it at a ridiculously overvalued price, can afford it, like it a lot, and plan to stay in it for the long term, keep it. If you can’t answer yes to the above, you could find another primary residence just as nice for a cheaper price and dump your primary (along with the condo) after you close on the cheaper house. Your credit will be wrecked, but you’ll be freer.

Now, I can only tell you what you CAN do, I’m not advocating the above plan. Afterall, that would be unethical. 😉

P.S. If it’s non-recourse, I don’t know how you will get out of it. Someone on here posted that you could. I would run that by a lawyer.

[Tavo]

“How much equity have you lost in your current resident?”

None, I believe that I got a good deal, but values are falling like a rock, so I’ll be down 20% in 2009 an 2010. After that, who knows.

“Can you really afford it like you say?”

Absolutley, my original post is 100% accurate. Why would I lie if I’m asking for helpful advice?

“if you didn’t purchase it at a ridiculously overvalued price, can afford it, like it a lot, and plan to stay in it for the long term, keep it.”

All true and I agree with this conclusion

“P.S. If it’s non-recourse, I don’t know how you will get out of it.”

I think you mean “recourse,” but I’ve known this. I thought I read somewhere that if you just re-fied w/o taking equity out there may be some “grey area.” It may be worth speaking to an attorney, but it feels pretty shitty to consider this…

[Tavo]

“How much equity have you lost in your current resident?”

None, I believe that I got a good deal, but values are falling like a rock, so I’ll be down 20% in 2009 an 2010. After that, who knows.

“Can you really afford it like you say?”

Absolutley, my original post is 100% accurate. Why would I lie if I’m asking for helpful advice?

“if you didn’t purchase it at a ridiculously overvalued price, can afford it, like it a lot, and plan to stay in it for the long term, keep it.”

All true and I agree with this conclusion

“P.S. If it’s non-recourse, I don’t know how you will get out of it.”

I think you mean “recourse,” but I’ve known this. I thought I read somewhere that if you just re-fied w/o taking equity out there may be some “grey area.” It may be worth speaking to an attorney, but it feels pretty shitty to consider this…

[Tavo]

“How much equity have you lost in your current resident?”

None, I believe that I got a good deal, but values are falling like a rock, so I’ll be down 20% in 2009 an 2010. After that, who knows.

“Can you really afford it like you say?”

Absolutley, my original post is 100% accurate. Why would I lie if I’m asking for helpful advice?

“if you didn’t purchase it at a ridiculously overvalued price, can afford it, like it a lot, and plan to stay in it for the long term, keep it.”

All true and I agree with this conclusion

“P.S. If it’s non-recourse, I don’t know how you will get out of it.”

I think you mean “recourse,” but I’ve known this. I thought I read somewhere that if you just re-fied w/o taking equity out there may be some “grey area.” It may be worth speaking to an attorney, but it feels pretty shitty to consider this…

[Tavo]

“How much equity have you lost in your current resident?”

None, I believe that I got a good deal, but values are falling like a rock, so I’ll be down 20% in 2009 an 2010. After that, who knows.

“Can you really afford it like you say?”

Absolutley, my original post is 100% accurate. Why would I lie if I’m asking for helpful advice?

“if you didn’t purchase it at a ridiculously overvalued price, can afford it, like it a lot, and plan to stay in it for the long term, keep it.”

All true and I agree with this conclusion

“P.S. If it’s non-recourse, I don’t know how you will get out of it.”

I think you mean “recourse,” but I’ve known this. I thought I read somewhere that if you just re-fied w/o taking equity out there may be some “grey area.” It may be worth speaking to an attorney, but it feels pretty shitty to consider this…

[Tavo]

“How much equity have you lost in your current resident?”

None, I believe that I got a good deal, but values are falling like a rock, so I’ll be down 20% in 2009 an 2010. After that, who knows.

“Can you really afford it like you say?”

Absolutley, my original post is 100% accurate. Why would I lie if I’m asking for helpful advice?

“if you didn’t purchase it at a ridiculously overvalued price, can afford it, like it a lot, and plan to stay in it for the long term, keep it.”

All true and I agree with this conclusion

“P.S. If it’s non-recourse, I don’t know how you will get out of it.”

I think you mean “recourse,” but I’ve known this. I thought I read somewhere that if you just re-fied w/o taking equity out there may be some “grey area.” It may be worth speaking to an attorney, but it feels pretty shitty to consider this…

[Anonymous]

Tavo, more thoughts. I just read that you have an option arm on the house. When it resets, can you afford the payments?

Regarding your primary residence, I’m not familiar with your area. For one thing, you should consult with real estate experts in the area you purchased (reputable ones-not crooks) and determine some kind of guesstimate on how many years it will take for the value to come back up to what you bought it at. Also do your own research, don’t just take anyone’s word blindly. Will you be psychologically ok living in a house that you paid 100k, 200K too much for? You bought at peak, so depending on the area, it may NEVER be worth what you paid for it.

Taking that into consideration, with what I posted above, you can make a decision on whether you want to keep the primary residence.

About the condo, what has comparable condos dropped to? Same with the house, it may never be worth what you paid. Does it make sense to you to keep it from a financial standpoint? If not, dump it. Again, since it’s non-recourse, consult a lawyer as well to make sure you can.

P.S. Yes, I mean recourse. Sorry. Also, I’d rather feel a little shitty at first, and be able to live free, save money and invest for the good of my self and family.

[Anonymous]

You’re already at a 70K loss on the condo. If you can, get out now.

[Tavo]

“You’re already at a 70K loss on the condo. If you can, get out now.”

“If you can get out” seems to be the key question. Otherwise, no way will I just eat $70k in one shot. Even if I sink $1k per mo. for 3 yrs it’ll only be $36k. Consider loss of rent, maintennace, etc..$50k, but I’ll have the very small chance of a turnaround (small chance, I know)

[Anonymous]

Yeah, I know you don’t want to eat 70K in one shot. The other question is how much more is it gonna depreciate AND how how long will you have to sink 1k into it. It could be longer than 3 years.

[vagabondo]

Why is good credit important? Set aside all the financial and self work implication – there are other, more meaningful ramifications.

The fact is, employers are increasingly using credit scores to filter prospective candidates. As we head deeper into this recession, the pool of qualified candidates will grow for each open position. If your credit history is sub par, you may be at a disadvantage when compared to your competition.

[sdnerd]

Previous poster asked it, but I’ll repeat – what are the current comps on the condo & the house? And what were the prices at the peak?

It would be beneficial to have a rough idea just how far prices have already fallen.

[Tavo]

“what are the current comps on the condo & the house? And what were the prices at the peak”

Condo – originally purcashed “at the peak” for $350,000 now “valued” at $280,000

Home – Previous owner purchased “at the peak” for $780k. I purchased in a short sale for $550,00. Now “valued” at $610,000

I took comparable recent sales (w/in last 3 months) listd on zillow and estimated a value. I did not take the zestimate, but it was not far off…

I am not a novice at this as I review commercial property appraisals for a living. I am pretty confident that those are current values of my properties. Future values, obviously, are harder to predict.

What say you, Sdnerd?

[Deal Hunter]

Yes, You CAN short sale even if you are not late on payments!  The key to this is to document your HARDSHIP situation.

Some points to consider:

• Short sale your PRIMARY residence.  The lender will send you a 1099 for any loss from the short sale, but it is only NON-taxable for short sales/foreclosures on your Primary Residence.
• Next, find a Realtor that is Short Sale EXPERT.  Interview a few and dont' be deterred by inexperienced realtors that poo poo on short sales.  The good ones will work hard to help you out!
• Document your Hardship and send it immediately to all the lenders (firsts and seconds) of BOTH your properties.
• Send a cover letter with the following additional documents; most recent bank statements, most recent paycheck stubs, list of all your monthly expenses, most recent tax return
• You cover letter should give the lenders the "option" of giving you a special forbearance:  " Dear Lender, I regret to inform you that I am not able to make the minimum payment required on the loan for this property.  The minimum payment is beyond my ability to pay in my current financial situation. Due to the economy, in I have not been able to earn enough to pay all my current obligations.  I would like to request forebearance of the loan for as long as possible to allow me to pay a smaller amount  until such time as my income improves, or I am able to sell the property, I will continue to make the payment of $xxx.xx (put in a smaller amount than the usual – like 50%) and would hope that you accept this as an alternative to forclosure.

Give it a whirl.  You never know until you actually try if any of your lenders will be willing to help you out.  They would rather that you work with them instead of letting the properties foreclose, so just try.

 Good luck! 

[sdnerd]

You bought it for 20% off peak, and if your estimates and recent comps are accurate – you still paid 10% less then recent comps. You like and are living in the house, and plan to for the long term. Sure prices may go down another 10-20%, or they may not. Sounds like you are OK there and shouldn’t lose sleep. If you were renting the house right now, you’d be spending what.. approximately $25-30k/year in rent right?

For the condo – honestly first thing I’d do is confirm if it’s a recourse loan or not. You re-financed so it most likely is, but maybe it’s not since you didn’t suck cash out. If it’s non-recourse, personally I’d look into walking. You did a 100% finance deal, little skin in the game, and you already own your long term home.

If it’s a recourse loan, and you can’t walk – that’s a tough call. Assuming you have ample savings to cover yourself and both properties for extended period of time should you lose your job then personally, I don’t think I’d short sale. A slow bleed gives you more time, and more cash in the near future. You aren’t distressed, and don’t have to sell.

Based on your income, you make a fair amount of money so these loans aren’t going to break your back especially renting 1 of them. And at some point in the future, whether its 5,10,15 years from now prices, rents, and your income are most likely going to be higher – especially if we inflate out. Not to mention, who knows what bailouts are coming.

The good news is – you didn’t buy and re-finance an $800k downtown condo with a $600/mo HOA! 🙂

[Tavo]

Deal Hunter,

Not necessarily in a “distressed” situation, just a stupid (cash flow negative) one by my own making. Thanks for the post….

Sdnerd,

Thanks for the well thought out response and for reading my previous posts. I agree 100% with your recommendations and conclusions. These were my original conclusions, but it was nice to read other people’s thoughts. I guess, at this point, I need to ride this out a little longer until my options become clearer…

[djc]

Sell the house, move back into the condo.

If your estimates are accurate, you can at minimum break even and lose the house and it’s potential to turn into a disaster when the ARM resets or it falls 10,20,40k below your purchase price. One scenario is likely, the other one is definite.

It isn’t what you want to hear, but it is reality if you don’t want to end up with bad credit or worse, bankruptcy.

Just because you can afford it doesn’t mean you should wait and see what happens. 1k in the bank is another 1k towards retirement or the kid’s college fund.

That’s my opinion. Good luck.

[Bugs]

The ARM on your primary residence could end up being a killer if/when the interest rates max out.

Some lenders are talking about resetting mortgages. If you can talk the mortgage holder on the condo to reset it closer to your break even point on the rental that might work.

As for how long you’ll have to hold both properties to “break even” I’m thinking it could easily be 10 years and it might be longer than that. Most people assume the next cycle will peak higher than this last one did, but there’s no real reason why it has to. I can envision a scenario where the next cycle only restores 1/4 of the losses from this current downswing. And who knows what’s going to happen with interest rates?

On the other hand, inflation and its variants are coming to town for an extended visit. That could translate into higher incomes, and if so it’s theoretically possible that we might wage-inflate our way into the prior sales prices. When considering we now compete in a more globalized economy I don’t see how. How good do you think the chances are of your income tripling over the next 10 years?

The most brazen move is to hang on to both assets, wait for the market to drop, buy another home at the bottom and then walk on both your current loans. That will put your mortgage payment at parity with the rental rates and all you will have lost will be the additional payments you’ve made between now and then. That is, depending on how the recourse/non-recourse thing works out.

[Bugs]

The ARM on your primary residence could end up being a killer if/when the interest rates max out.

Some lenders are talking about resetting mortgages. If you can talk the mortgage holder on the condo to reset it closer to your break even point on the rental that might work.

As for how long you’ll have to hold both properties to “break even” I’m thinking it could easily be 10 years and it might be longer than that. Most people assume the next cycle will peak higher than this last one did, but there’s no real reason why it has to. I can envision a scenario where the next cycle only restores 1/4 of the losses from this current downswing. And who knows what’s going to happen with interest rates?

On the other hand, inflation and its variants are coming to town for an extended visit. That could translate into higher incomes, and if so it’s theoretically possible that we might wage-inflate our way into the prior sales prices. When considering we now compete in a more globalized economy I don’t see how. How good do you think the chances are of your income tripling over the next 10 years?

The most brazen move is to hang on to both assets, wait for the market to drop, buy another home at the bottom and then walk on both your current loans. That will put your mortgage payment at parity with the rental rates and all you will have lost will be the additional payments you’ve made between now and then. That is, depending on how the recourse/non-recourse thing works out.

[Bugs]

The ARM on your primary residence could end up being a killer if/when the interest rates max out.

Some lenders are talking about resetting mortgages. If you can talk the mortgage holder on the condo to reset it closer to your break even point on the rental that might work.

As for how long you’ll have to hold both properties to “break even” I’m thinking it could easily be 10 years and it might be longer than that. Most people assume the next cycle will peak higher than this last one did, but there’s no real reason why it has to. I can envision a scenario where the next cycle only restores 1/4 of the losses from this current downswing. And who knows what’s going to happen with interest rates?

On the other hand, inflation and its variants are coming to town for an extended visit. That could translate into higher incomes, and if so it’s theoretically possible that we might wage-inflate our way into the prior sales prices. When considering we now compete in a more globalized economy I don’t see how. How good do you think the chances are of your income tripling over the next 10 years?

The most brazen move is to hang on to both assets, wait for the market to drop, buy another home at the bottom and then walk on both your current loans. That will put your mortgage payment at parity with the rental rates and all you will have lost will be the additional payments you’ve made between now and then. That is, depending on how the recourse/non-recourse thing works out.

[Bugs]

The ARM on your primary residence could end up being a killer if/when the interest rates max out.

Some lenders are talking about resetting mortgages. If you can talk the mortgage holder on the condo to reset it closer to your break even point on the rental that might work.

As for how long you’ll have to hold both properties to “break even” I’m thinking it could easily be 10 years and it might be longer than that. Most people assume the next cycle will peak higher than this last one did, but there’s no real reason why it has to. I can envision a scenario where the next cycle only restores 1/4 of the losses from this current downswing. And who knows what’s going to happen with interest rates?

On the other hand, inflation and its variants are coming to town for an extended visit. That could translate into higher incomes, and if so it’s theoretically possible that we might wage-inflate our way into the prior sales prices. When considering we now compete in a more globalized economy I don’t see how. How good do you think the chances are of your income tripling over the next 10 years?

The most brazen move is to hang on to both assets, wait for the market to drop, buy another home at the bottom and then walk on both your current loans. That will put your mortgage payment at parity with the rental rates and all you will have lost will be the additional payments you’ve made between now and then. That is, depending on how the recourse/non-recourse thing works out.

[Bugs]

The ARM on your primary residence could end up being a killer if/when the interest rates max out.

Some lenders are talking about resetting mortgages. If you can talk the mortgage holder on the condo to reset it closer to your break even point on the rental that might work.

As for how long you’ll have to hold both properties to “break even” I’m thinking it could easily be 10 years and it might be longer than that. Most people assume the next cycle will peak higher than this last one did, but there’s no real reason why it has to. I can envision a scenario where the next cycle only restores 1/4 of the losses from this current downswing. And who knows what’s going to happen with interest rates?

On the other hand, inflation and its variants are coming to town for an extended visit. That could translate into higher incomes, and if so it’s theoretically possible that we might wage-inflate our way into the prior sales prices. When considering we now compete in a more globalized economy I don’t see how. How good do you think the chances are of your income tripling over the next 10 years?

The most brazen move is to hang on to both assets, wait for the market to drop, buy another home at the bottom and then walk on both your current loans. That will put your mortgage payment at parity with the rental rates and all you will have lost will be the additional payments you’ve made between now and then. That is, depending on how the recourse/non-recourse thing works out.

[Running Bear]

DJC gave you very good advice.

I would try and sell the house since it sounds like you can get out of it for little to no loss. But if you choose to do this it better be fast. This spring selling pop won’t last very long. IMHO

Rent until the lease is up on the tenants in the condo then move back into the condo. You are bleeding money every month holding on to both and also have double exposure to the price depreciation in the market.

Also, the condo is on a 30 year fixed more then likely recourse loan and underwater. You can’t get away from this money drain so get rid of what you can….the house.

You have to make the choice that is going to be better for your financial future. If you can take the emotion out of it I think you will come to realize that moving back into the condo is the best course financially by far.

My2Cents

[Running Bear]

DJC gave you very good advice.

I would try and sell the house since it sounds like you can get out of it for little to no loss. But if you choose to do this it better be fast. This spring selling pop won’t last very long. IMHO

Rent until the lease is up on the tenants in the condo then move back into the condo. You are bleeding money every month holding on to both and also have double exposure to the price depreciation in the market.

Also, the condo is on a 30 year fixed more then likely recourse loan and underwater. You can’t get away from this money drain so get rid of what you can….the house.

You have to make the choice that is going to be better for your financial future. If you can take the emotion out of it I think you will come to realize that moving back into the condo is the best course financially by far.

My2Cents

[Running Bear]

DJC gave you very good advice.

I would try and sell the house since it sounds like you can get out of it for little to no loss. But if you choose to do this it better be fast. This spring selling pop won’t last very long. IMHO

Rent until the lease is up on the tenants in the condo then move back into the condo. You are bleeding money every month holding on to both and also have double exposure to the price depreciation in the market.

Also, the condo is on a 30 year fixed more then likely recourse loan and underwater. You can’t get away from this money drain so get rid of what you can….the house.

You have to make the choice that is going to be better for your financial future. If you can take the emotion out of it I think you will come to realize that moving back into the condo is the best course financially by far.

My2Cents

[Running Bear]

DJC gave you very good advice.

I would try and sell the house since it sounds like you can get out of it for little to no loss. But if you choose to do this it better be fast. This spring selling pop won’t last very long. IMHO

Rent until the lease is up on the tenants in the condo then move back into the condo. You are bleeding money every month holding on to both and also have double exposure to the price depreciation in the market.

Also, the condo is on a 30 year fixed more then likely recourse loan and underwater. You can’t get away from this money drain so get rid of what you can….the house.

You have to make the choice that is going to be better for your financial future. If you can take the emotion out of it I think you will come to realize that moving back into the condo is the best course financially by far.

My2Cents

[Running Bear]

DJC gave you very good advice.

I would try and sell the house since it sounds like you can get out of it for little to no loss. But if you choose to do this it better be fast. This spring selling pop won’t last very long. IMHO

Rent until the lease is up on the tenants in the condo then move back into the condo. You are bleeding money every month holding on to both and also have double exposure to the price depreciation in the market.

Also, the condo is on a 30 year fixed more then likely recourse loan and underwater. You can’t get away from this money drain so get rid of what you can….the house.

You have to make the choice that is going to be better for your financial future. If you can take the emotion out of it I think you will come to realize that moving back into the condo is the best course financially by far.

My2Cents

[djc]

Sell the house, move back into the condo.

If your estimates are accurate, you can at minimum break even and lose the house and it’s potential to turn into a disaster when the ARM resets or it falls 10,20,40k below your purchase price. One scenario is likely, the other one is definite.

It isn’t what you want to hear, but it is reality if you don’t want to end up with bad credit or worse, bankruptcy.

Just because you can afford it doesn’t mean you should wait and see what happens. 1k in the bank is another 1k towards retirement or the kid’s college fund.

That’s my opinion. Good luck.

[djc]

Sell the house, move back into the condo.

If your estimates are accurate, you can at minimum break even and lose the house and it’s potential to turn into a disaster when the ARM resets or it falls 10,20,40k below your purchase price. One scenario is likely, the other one is definite.

It isn’t what you want to hear, but it is reality if you don’t want to end up with bad credit or worse, bankruptcy.

Just because you can afford it doesn’t mean you should wait and see what happens. 1k in the bank is another 1k towards retirement or the kid’s college fund.

That’s my opinion. Good luck.

[djc]

Sell the house, move back into the condo.

If your estimates are accurate, you can at minimum break even and lose the house and it’s potential to turn into a disaster when the ARM resets or it falls 10,20,40k below your purchase price. One scenario is likely, the other one is definite.

It isn’t what you want to hear, but it is reality if you don’t want to end up with bad credit or worse, bankruptcy.

Just because you can afford it doesn’t mean you should wait and see what happens. 1k in the bank is another 1k towards retirement or the kid’s college fund.

That’s my opinion. Good luck.

[djc]

Sell the house, move back into the condo.

If your estimates are accurate, you can at minimum break even and lose the house and it’s potential to turn into a disaster when the ARM resets or it falls 10,20,40k below your purchase price. One scenario is likely, the other one is definite.

It isn’t what you want to hear, but it is reality if you don’t want to end up with bad credit or worse, bankruptcy.

Just because you can afford it doesn’t mean you should wait and see what happens. 1k in the bank is another 1k towards retirement or the kid’s college fund.

That’s my opinion. Good luck.

[Tavo]

Deal Hunter,

Not necessarily in a “distressed” situation, just a stupid (cash flow negative) one by my own making. Thanks for the post….

Sdnerd,

Thanks for the well thought out response and for reading my previous posts. I agree 100% with your recommendations and conclusions. These were my original conclusions, but it was nice to read other people’s thoughts. I guess, at this point, I need to ride this out a little longer until my options become clearer…

[Tavo]

Deal Hunter,

Not necessarily in a “distressed” situation, just a stupid (cash flow negative) one by my own making. Thanks for the post….

Sdnerd,

Thanks for the well thought out response and for reading my previous posts. I agree 100% with your recommendations and conclusions. These were my original conclusions, but it was nice to read other people’s thoughts. I guess, at this point, I need to ride this out a little longer until my options become clearer…

[Tavo]

Deal Hunter,

Not necessarily in a “distressed” situation, just a stupid (cash flow negative) one by my own making. Thanks for the post….

Sdnerd,

Thanks for the well thought out response and for reading my previous posts. I agree 100% with your recommendations and conclusions. These were my original conclusions, but it was nice to read other people’s thoughts. I guess, at this point, I need to ride this out a little longer until my options become clearer…

[Tavo]

Deal Hunter,

Not necessarily in a “distressed” situation, just a stupid (cash flow negative) one by my own making. Thanks for the post….

Sdnerd,

Thanks for the well thought out response and for reading my previous posts. I agree 100% with your recommendations and conclusions. These were my original conclusions, but it was nice to read other people’s thoughts. I guess, at this point, I need to ride this out a little longer until my options become clearer…

[sdnerd]

You bought it for 20% off peak, and if your estimates and recent comps are accurate – you still paid 10% less then recent comps. You like and are living in the house, and plan to for the long term. Sure prices may go down another 10-20%, or they may not. Sounds like you are OK there and shouldn’t lose sleep. If you were renting the house right now, you’d be spending what.. approximately $25-30k/year in rent right?

For the condo – honestly first thing I’d do is confirm if it’s a recourse loan or not. You re-financed so it most likely is, but maybe it’s not since you didn’t suck cash out. If it’s non-recourse, personally I’d look into walking. You did a 100% finance deal, little skin in the game, and you already own your long term home.

If it’s a recourse loan, and you can’t walk – that’s a tough call. Assuming you have ample savings to cover yourself and both properties for extended period of time should you lose your job then personally, I don’t think I’d short sale. A slow bleed gives you more time, and more cash in the near future. You aren’t distressed, and don’t have to sell.

Based on your income, you make a fair amount of money so these loans aren’t going to break your back especially renting 1 of them. And at some point in the future, whether its 5,10,15 years from now prices, rents, and your income are most likely going to be higher – especially if we inflate out. Not to mention, who knows what bailouts are coming.

The good news is – you didn’t buy and re-finance an $800k downtown condo with a $600/mo HOA! 🙂

[sdnerd]

You bought it for 20% off peak, and if your estimates and recent comps are accurate – you still paid 10% less then recent comps. You like and are living in the house, and plan to for the long term. Sure prices may go down another 10-20%, or they may not. Sounds like you are OK there and shouldn’t lose sleep. If you were renting the house right now, you’d be spending what.. approximately $25-30k/year in rent right?

For the condo – honestly first thing I’d do is confirm if it’s a recourse loan or not. You re-financed so it most likely is, but maybe it’s not since you didn’t suck cash out. If it’s non-recourse, personally I’d look into walking. You did a 100% finance deal, little skin in the game, and you already own your long term home.

If it’s a recourse loan, and you can’t walk – that’s a tough call. Assuming you have ample savings to cover yourself and both properties for extended period of time should you lose your job then personally, I don’t think I’d short sale. A slow bleed gives you more time, and more cash in the near future. You aren’t distressed, and don’t have to sell.

Based on your income, you make a fair amount of money so these loans aren’t going to break your back especially renting 1 of them. And at some point in the future, whether its 5,10,15 years from now prices, rents, and your income are most likely going to be higher – especially if we inflate out. Not to mention, who knows what bailouts are coming.

The good news is – you didn’t buy and re-finance an $800k downtown condo with a $600/mo HOA! 🙂

[sdnerd]

You bought it for 20% off peak, and if your estimates and recent comps are accurate – you still paid 10% less then recent comps. You like and are living in the house, and plan to for the long term. Sure prices may go down another 10-20%, or they may not. Sounds like you are OK there and shouldn’t lose sleep. If you were renting the house right now, you’d be spending what.. approximately $25-30k/year in rent right?

For the condo – honestly first thing I’d do is confirm if it’s a recourse loan or not. You re-financed so it most likely is, but maybe it’s not since you didn’t suck cash out. If it’s non-recourse, personally I’d look into walking. You did a 100% finance deal, little skin in the game, and you already own your long term home.

If it’s a recourse loan, and you can’t walk – that’s a tough call. Assuming you have ample savings to cover yourself and both properties for extended period of time should you lose your job then personally, I don’t think I’d short sale. A slow bleed gives you more time, and more cash in the near future. You aren’t distressed, and don’t have to sell.

Based on your income, you make a fair amount of money so these loans aren’t going to break your back especially renting 1 of them. And at some point in the future, whether its 5,10,15 years from now prices, rents, and your income are most likely going to be higher – especially if we inflate out. Not to mention, who knows what bailouts are coming.

The good news is – you didn’t buy and re-finance an $800k downtown condo with a $600/mo HOA! 🙂

[sdnerd]

You bought it for 20% off peak, and if your estimates and recent comps are accurate – you still paid 10% less then recent comps. You like and are living in the house, and plan to for the long term. Sure prices may go down another 10-20%, or they may not. Sounds like you are OK there and shouldn’t lose sleep. If you were renting the house right now, you’d be spending what.. approximately $25-30k/year in rent right?

For the condo – honestly first thing I’d do is confirm if it’s a recourse loan or not. You re-financed so it most likely is, but maybe it’s not since you didn’t suck cash out. If it’s non-recourse, personally I’d look into walking. You did a 100% finance deal, little skin in the game, and you already own your long term home.

If it’s a recourse loan, and you can’t walk – that’s a tough call. Assuming you have ample savings to cover yourself and both properties for extended period of time should you lose your job then personally, I don’t think I’d short sale. A slow bleed gives you more time, and more cash in the near future. You aren’t distressed, and don’t have to sell.

Based on your income, you make a fair amount of money so these loans aren’t going to break your back especially renting 1 of them. And at some point in the future, whether its 5,10,15 years from now prices, rents, and your income are most likely going to be higher – especially if we inflate out. Not to mention, who knows what bailouts are coming.

The good news is – you didn’t buy and re-finance an $800k downtown condo with a $600/mo HOA! 🙂

[Deal Hunter]

Yes, You CAN short sale even if you are not late on payments!  The key to this is to document your HARDSHIP situation.

Some points to consider:

• Short sale your PRIMARY residence.  The lender will send you a 1099 for any loss from the short sale, but it is only NON-taxable for short sales/foreclosures on your Primary Residence.
• Next, find a Realtor that is Short Sale EXPERT.  Interview a few and dont' be deterred by inexperienced realtors that poo poo on short sales.  The good ones will work hard to help you out!
• Document your Hardship and send it immediately to all the lenders (firsts and seconds) of BOTH your properties.
• Send a cover letter with the following additional documents; most recent bank statements, most recent paycheck stubs, list of all your monthly expenses, most recent tax return
• You cover letter should give the lenders the "option" of giving you a special forbearance:  " Dear Lender, I regret to inform you that I am not able to make the minimum payment required on the loan for this property.  The minimum payment is beyond my ability to pay in my current financial situation. Due to the economy, in I have not been able to earn enough to pay all my current obligations.  I would like to request forebearance of the loan for as long as possible to allow me to pay a smaller amount  until such time as my income improves, or I am able to sell the property, I will continue to make the payment of $xxx.xx (put in a smaller amount than the usual – like 50%) and would hope that you accept this as an alternative to forclosure.

Give it a whirl.  You never know until you actually try if any of your lenders will be willing to help you out.  They would rather that you work with them instead of letting the properties foreclose, so just try.

 Good luck! 

[Deal Hunter]

Yes, You CAN short sale even if you are not late on payments!  The key to this is to document your HARDSHIP situation.

Some points to consider:

• Short sale your PRIMARY residence.  The lender will send you a 1099 for any loss from the short sale, but it is only NON-taxable for short sales/foreclosures on your Primary Residence.
• Next, find a Realtor that is Short Sale EXPERT.  Interview a few and dont' be deterred by inexperienced realtors that poo poo on short sales.  The good ones will work hard to help you out!
• Document your Hardship and send it immediately to all the lenders (firsts and seconds) of BOTH your properties.
• Send a cover letter with the following additional documents; most recent bank statements, most recent paycheck stubs, list of all your monthly expenses, most recent tax return
• You cover letter should give the lenders the "option" of giving you a special forbearance:  " Dear Lender, I regret to inform you that I am not able to make the minimum payment required on the loan for this property.  The minimum payment is beyond my ability to pay in my current financial situation. Due to the economy, in I have not been able to earn enough to pay all my current obligations.  I would like to request forebearance of the loan for as long as possible to allow me to pay a smaller amount  until such time as my income improves, or I am able to sell the property, I will continue to make the payment of $xxx.xx (put in a smaller amount than the usual – like 50%) and would hope that you accept this as an alternative to forclosure.

Give it a whirl.  You never know until you actually try if any of your lenders will be willing to help you out.  They would rather that you work with them instead of letting the properties foreclose, so just try.

 Good luck! 

[Deal Hunter]

Yes, You CAN short sale even if you are not late on payments!  The key to this is to document your HARDSHIP situation.

Some points to consider:

• Short sale your PRIMARY residence.  The lender will send you a 1099 for any loss from the short sale, but it is only NON-taxable for short sales/foreclosures on your Primary Residence.
• Next, find a Realtor that is Short Sale EXPERT.  Interview a few and dont' be deterred by inexperienced realtors that poo poo on short sales.  The good ones will work hard to help you out!
• Document your Hardship and send it immediately to all the lenders (firsts and seconds) of BOTH your properties.
• Send a cover letter with the following additional documents; most recent bank statements, most recent paycheck stubs, list of all your monthly expenses, most recent tax return
• You cover letter should give the lenders the "option" of giving you a special forbearance:  " Dear Lender, I regret to inform you that I am not able to make the minimum payment required on the loan for this property.  The minimum payment is beyond my ability to pay in my current financial situation. Due to the economy, in I have not been able to earn enough to pay all my current obligations.  I would like to request forebearance of the loan for as long as possible to allow me to pay a smaller amount  until such time as my income improves, or I am able to sell the property, I will continue to make the payment of $xxx.xx (put in a smaller amount than the usual – like 50%) and would hope that you accept this as an alternative to forclosure.

Give it a whirl.  You never know until you actually try if any of your lenders will be willing to help you out.  They would rather that you work with them instead of letting the properties foreclose, so just try.

 Good luck! 

[Deal Hunter]

Yes, You CAN short sale even if you are not late on payments!  The key to this is to document your HARDSHIP situation.

Some points to consider:

• Short sale your PRIMARY residence.  The lender will send you a 1099 for any loss from the short sale, but it is only NON-taxable for short sales/foreclosures on your Primary Residence.
• Next, find a Realtor that is Short Sale EXPERT.  Interview a few and dont' be deterred by inexperienced realtors that poo poo on short sales.  The good ones will work hard to help you out!
• Document your Hardship and send it immediately to all the lenders (firsts and seconds) of BOTH your properties.
• Send a cover letter with the following additional documents; most recent bank statements, most recent paycheck stubs, list of all your monthly expenses, most recent tax return
• You cover letter should give the lenders the "option" of giving you a special forbearance:  " Dear Lender, I regret to inform you that I am not able to make the minimum payment required on the loan for this property.  The minimum payment is beyond my ability to pay in my current financial situation. Due to the economy, in I have not been able to earn enough to pay all my current obligations.  I would like to request forebearance of the loan for as long as possible to allow me to pay a smaller amount  until such time as my income improves, or I am able to sell the property, I will continue to make the payment of $xxx.xx (put in a smaller amount than the usual – like 50%) and would hope that you accept this as an alternative to forclosure.

Give it a whirl.  You never know until you actually try if any of your lenders will be willing to help you out.  They would rather that you work with them instead of letting the properties foreclose, so just try.

 Good luck! 

[Tavo]

“what are the current comps on the condo & the house? And what were the prices at the peak”

Condo – originally purcashed “at the peak” for $350,000 now “valued” at $280,000

Home – Previous owner purchased “at the peak” for $780k. I purchased in a short sale for $550,00. Now “valued” at $610,000

I took comparable recent sales (w/in last 3 months) listd on zillow and estimated a value. I did not take the zestimate, but it was not far off…

I am not a novice at this as I review commercial property appraisals for a living. I am pretty confident that those are current values of my properties. Future values, obviously, are harder to predict.

What say you, Sdnerd?

[Tavo]

“what are the current comps on the condo & the house? And what were the prices at the peak”

Condo – originally purcashed “at the peak” for $350,000 now “valued” at $280,000

Home – Previous owner purchased “at the peak” for $780k. I purchased in a short sale for $550,00. Now “valued” at $610,000

I took comparable recent sales (w/in last 3 months) listd on zillow and estimated a value. I did not take the zestimate, but it was not far off…

I am not a novice at this as I review commercial property appraisals for a living. I am pretty confident that those are current values of my properties. Future values, obviously, are harder to predict.

What say you, Sdnerd?

[Tavo]

“what are the current comps on the condo & the house? And what were the prices at the peak”

Condo – originally purcashed “at the peak” for $350,000 now “valued” at $280,000

Home – Previous owner purchased “at the peak” for $780k. I purchased in a short sale for $550,00. Now “valued” at $610,000

I took comparable recent sales (w/in last 3 months) listd on zillow and estimated a value. I did not take the zestimate, but it was not far off…

I am not a novice at this as I review commercial property appraisals for a living. I am pretty confident that those are current values of my properties. Future values, obviously, are harder to predict.

What say you, Sdnerd?

[Tavo]

“what are the current comps on the condo & the house? And what were the prices at the peak”

Condo – originally purcashed “at the peak” for $350,000 now “valued” at $280,000

Home – Previous owner purchased “at the peak” for $780k. I purchased in a short sale for $550,00. Now “valued” at $610,000

I took comparable recent sales (w/in last 3 months) listd on zillow and estimated a value. I did not take the zestimate, but it was not far off…

I am not a novice at this as I review commercial property appraisals for a living. I am pretty confident that those are current values of my properties. Future values, obviously, are harder to predict.

What say you, Sdnerd?

[sdnerd]

Previous poster asked it, but I’ll repeat – what are the current comps on the condo & the house? And what were the prices at the peak?

It would be beneficial to have a rough idea just how far prices have already fallen.

[sdnerd]

Previous poster asked it, but I’ll repeat – what are the current comps on the condo & the house? And what were the prices at the peak?

It would be beneficial to have a rough idea just how far prices have already fallen.

[sdnerd]

Previous poster asked it, but I’ll repeat – what are the current comps on the condo & the house? And what were the prices at the peak?

It would be beneficial to have a rough idea just how far prices have already fallen.

[sdnerd]

Previous poster asked it, but I’ll repeat – what are the current comps on the condo & the house? And what were the prices at the peak?

It would be beneficial to have a rough idea just how far prices have already fallen.

[vagabondo]

Why is good credit important? Set aside all the financial and self work implication – there are other, more meaningful ramifications.

The fact is, employers are increasingly using credit scores to filter prospective candidates. As we head deeper into this recession, the pool of qualified candidates will grow for each open position. If your credit history is sub par, you may be at a disadvantage when compared to your competition.

[vagabondo]

Why is good credit important? Set aside all the financial and self work implication – there are other, more meaningful ramifications.

The fact is, employers are increasingly using credit scores to filter prospective candidates. As we head deeper into this recession, the pool of qualified candidates will grow for each open position. If your credit history is sub par, you may be at a disadvantage when compared to your competition.

[vagabondo]

Why is good credit important? Set aside all the financial and self work implication – there are other, more meaningful ramifications.

The fact is, employers are increasingly using credit scores to filter prospective candidates. As we head deeper into this recession, the pool of qualified candidates will grow for each open position. If your credit history is sub par, you may be at a disadvantage when compared to your competition.

[vagabondo]

Why is good credit important? Set aside all the financial and self work implication – there are other, more meaningful ramifications.

The fact is, employers are increasingly using credit scores to filter prospective candidates. As we head deeper into this recession, the pool of qualified candidates will grow for each open position. If your credit history is sub par, you may be at a disadvantage when compared to your competition.

[Tavo]

“The other question is how much more is it gonna depreciate AND how how long will you have to sink 1k into it. It could be longer than 3 years.”

Absolutely, those are the million dollar questions – no crystal balls on this site, but again, the most bearish forecast I’ve seen.

Another idea I had to minimize my loss was to get my RE license (work the required hours for free if necessary) and write down more losses on my condo. I work in commercial real estate and am pretty confident I won’t have a problem getting my license. I just got my taxes done and there’s really minimal losses I can take because of my income. Does anyone know if I am looking at this incorrectly? I know, not asking for legal or financial advice…just advice.

[Tavo]

“The other question is how much more is it gonna depreciate AND how how long will you have to sink 1k into it. It could be longer than 3 years.”

Absolutely, those are the million dollar questions – no crystal balls on this site, but again, the most bearish forecast I’ve seen.

Another idea I had to minimize my loss was to get my RE license (work the required hours for free if necessary) and write down more losses on my condo. I work in commercial real estate and am pretty confident I won’t have a problem getting my license. I just got my taxes done and there’s really minimal losses I can take because of my income. Does anyone know if I am looking at this incorrectly? I know, not asking for legal or financial advice…just advice.

[Tavo]

“The other question is how much more is it gonna depreciate AND how how long will you have to sink 1k into it. It could be longer than 3 years.”

Absolutely, those are the million dollar questions – no crystal balls on this site, but again, the most bearish forecast I’ve seen.

Another idea I had to minimize my loss was to get my RE license (work the required hours for free if necessary) and write down more losses on my condo. I work in commercial real estate and am pretty confident I won’t have a problem getting my license. I just got my taxes done and there’s really minimal losses I can take because of my income. Does anyone know if I am looking at this incorrectly? I know, not asking for legal or financial advice…just advice.

[Tavo]

“The other question is how much more is it gonna depreciate AND how how long will you have to sink 1k into it. It could be longer than 3 years.”

Absolutely, those are the million dollar questions – no crystal balls on this site, but again, the most bearish forecast I’ve seen.

Another idea I had to minimize my loss was to get my RE license (work the required hours for free if necessary) and write down more losses on my condo. I work in commercial real estate and am pretty confident I won’t have a problem getting my license. I just got my taxes done and there’s really minimal losses I can take because of my income. Does anyone know if I am looking at this incorrectly? I know, not asking for legal or financial advice…just advice.

[Tavo]

“The other question is how much more is it gonna depreciate AND how how long will you have to sink 1k into it. It could be longer than 3 years.”

Absolutely, those are the million dollar questions – no crystal balls on this site, but again, the most bearish forecast I’ve seen.

Another idea I had to minimize my loss was to get my RE license (work the required hours for free if necessary) and write down more losses on my condo. I work in commercial real estate and am pretty confident I won’t have a problem getting my license. I just got my taxes done and there’s really minimal losses I can take because of my income. Does anyone know if I am looking at this incorrectly? I know, not asking for legal or financial advice…just advice.

[Anonymous]

Yeah, I know you don’t want to eat 70K in one shot. The other question is how much more is it gonna depreciate AND how how long will you have to sink 1k into it. It could be longer than 3 years.

[Anonymous]

Yeah, I know you don’t want to eat 70K in one shot. The other question is how much more is it gonna depreciate AND how how long will you have to sink 1k into it. It could be longer than 3 years.

[Anonymous]

Yeah, I know you don’t want to eat 70K in one shot. The other question is how much more is it gonna depreciate AND how how long will you have to sink 1k into it. It could be longer than 3 years.

[Anonymous]

Yeah, I know you don’t want to eat 70K in one shot. The other question is how much more is it gonna depreciate AND how how long will you have to sink 1k into it. It could be longer than 3 years.

[Tavo]

“You’re already at a 70K loss on the condo. If you can, get out now.”

“If you can get out” seems to be the key question. Otherwise, no way will I just eat $70k in one shot. Even if I sink $1k per mo. for 3 yrs it’ll only be $36k. Consider loss of rent, maintennace, etc..$50k, but I’ll have the very small chance of a turnaround (small chance, I know)

[Tavo]

“You’re already at a 70K loss on the condo. If you can, get out now.”

“If you can get out” seems to be the key question. Otherwise, no way will I just eat $70k in one shot. Even if I sink $1k per mo. for 3 yrs it’ll only be $36k. Consider loss of rent, maintennace, etc..$50k, but I’ll have the very small chance of a turnaround (small chance, I know)

[Tavo]

“You’re already at a 70K loss on the condo. If you can, get out now.”

“If you can get out” seems to be the key question. Otherwise, no way will I just eat $70k in one shot. Even if I sink $1k per mo. for 3 yrs it’ll only be $36k. Consider loss of rent, maintennace, etc..$50k, but I’ll have the very small chance of a turnaround (small chance, I know)

[Tavo]

“You’re already at a 70K loss on the condo. If you can, get out now.”

“If you can get out” seems to be the key question. Otherwise, no way will I just eat $70k in one shot. Even if I sink $1k per mo. for 3 yrs it’ll only be $36k. Consider loss of rent, maintennace, etc..$50k, but I’ll have the very small chance of a turnaround (small chance, I know)

[Anonymous]

You’re already at a 70K loss on the condo. If you can, get out now.

[Anonymous]

You’re already at a 70K loss on the condo. If you can, get out now.

[Anonymous]

You’re already at a 70K loss on the condo. If you can, get out now.

[Anonymous]

You’re already at a 70K loss on the condo. If you can, get out now.

[Anonymous]

Tavo, more thoughts. I just read that you have an option arm on the house. When it resets, can you afford the payments?

Regarding your primary residence, I’m not familiar with your area. For one thing, you should consult with real estate experts in the area you purchased (reputable ones-not crooks) and determine some kind of guesstimate on how many years it will take for the value to come back up to what you bought it at. Also do your own research, don’t just take anyone’s word blindly. Will you be psychologically ok living in a house that you paid 100k, 200K too much for? You bought at peak, so depending on the area, it may NEVER be worth what you paid for it.

Taking that into consideration, with what I posted above, you can make a decision on whether you want to keep the primary residence.

About the condo, what has comparable condos dropped to? Same with the house, it may never be worth what you paid. Does it make sense to you to keep it from a financial standpoint? If not, dump it. Again, since it’s non-recourse, consult a lawyer as well to make sure you can.

P.S. Yes, I mean recourse. Sorry. Also, I’d rather feel a little shitty at first, and be able to live free, save money and invest for the good of my self and family.

[Anonymous]

Tavo, more thoughts. I just read that you have an option arm on the house. When it resets, can you afford the payments?

Regarding your primary residence, I’m not familiar with your area. For one thing, you should consult with real estate experts in the area you purchased (reputable ones-not crooks) and determine some kind of guesstimate on how many years it will take for the value to come back up to what you bought it at. Also do your own research, don’t just take anyone’s word blindly. Will you be psychologically ok living in a house that you paid 100k, 200K too much for? You bought at peak, so depending on the area, it may NEVER be worth what you paid for it.

Taking that into consideration, with what I posted above, you can make a decision on whether you want to keep the primary residence.

About the condo, what has comparable condos dropped to? Same with the house, it may never be worth what you paid. Does it make sense to you to keep it from a financial standpoint? If not, dump it. Again, since it’s non-recourse, consult a lawyer as well to make sure you can.

P.S. Yes, I mean recourse. Sorry. Also, I’d rather feel a little shitty at first, and be able to live free, save money and invest for the good of my self and family.

[Anonymous]

Tavo, more thoughts. I just read that you have an option arm on the house. When it resets, can you afford the payments?

Regarding your primary residence, I’m not familiar with your area. For one thing, you should consult with real estate experts in the area you purchased (reputable ones-not crooks) and determine some kind of guesstimate on how many years it will take for the value to come back up to what you bought it at. Also do your own research, don’t just take anyone’s word blindly. Will you be psychologically ok living in a house that you paid 100k, 200K too much for? You bought at peak, so depending on the area, it may NEVER be worth what you paid for it.

Taking that into consideration, with what I posted above, you can make a decision on whether you want to keep the primary residence.

About the condo, what has comparable condos dropped to? Same with the house, it may never be worth what you paid. Does it make sense to you to keep it from a financial standpoint? If not, dump it. Again, since it’s non-recourse, consult a lawyer as well to make sure you can.

P.S. Yes, I mean recourse. Sorry. Also, I’d rather feel a little shitty at first, and be able to live free, save money and invest for the good of my self and family.

[Anonymous]

Tavo, more thoughts. I just read that you have an option arm on the house. When it resets, can you afford the payments?

Regarding your primary residence, I’m not familiar with your area. For one thing, you should consult with real estate experts in the area you purchased (reputable ones-not crooks) and determine some kind of guesstimate on how many years it will take for the value to come back up to what you bought it at. Also do your own research, don’t just take anyone’s word blindly. Will you be psychologically ok living in a house that you paid 100k, 200K too much for? You bought at peak, so depending on the area, it may NEVER be worth what you paid for it.

Taking that into consideration, with what I posted above, you can make a decision on whether you want to keep the primary residence.

About the condo, what has comparable condos dropped to? Same with the house, it may never be worth what you paid. Does it make sense to you to keep it from a financial standpoint? If not, dump it. Again, since it’s non-recourse, consult a lawyer as well to make sure you can.

P.S. Yes, I mean recourse. Sorry. Also, I’d rather feel a little shitty at first, and be able to live free, save money and invest for the good of my self and family.

[Anonymous]

Tavo, no, I’m not going to say anything so arrogant as I wouldn’t put myself into the same situation. We all makes mistakes.

How much equity have you lost in your current resident? As far as the condo goes, you’re already losing 1k a month, who knows when the market will turn around to the point where you are not losing that kind of money. Can you really afford it like you say? If you can’t, you need to dump it yesterday.

What I would do? If it were me, I would dump the condo (don’t know how much you paid for it though). As far as the house, if you didn’t purchase it at a ridiculously overvalued price, can afford it, like it a lot, and plan to stay in it for the long term, keep it. If you can’t answer yes to the above, you could find another primary residence just as nice for a cheaper price and dump your primary (along with the condo) after you close on the cheaper house. Your credit will be wrecked, but you’ll be freer.

Now, I can only tell you what you CAN do, I’m not advocating the above plan. Afterall, that would be unethical. 😉

P.S. If it’s non-recourse, I don’t know how you will get out of it. Someone on here posted that you could. I would run that by a lawyer.

[Anonymous]

Tavo, no, I’m not going to say anything so arrogant as I wouldn’t put myself into the same situation. We all makes mistakes.

How much equity have you lost in your current resident? As far as the condo goes, you’re already losing 1k a month, who knows when the market will turn around to the point where you are not losing that kind of money. Can you really afford it like you say? If you can’t, you need to dump it yesterday.

What I would do? If it were me, I would dump the condo (don’t know how much you paid for it though). As far as the house, if you didn’t purchase it at a ridiculously overvalued price, can afford it, like it a lot, and plan to stay in it for the long term, keep it. If you can’t answer yes to the above, you could find another primary residence just as nice for a cheaper price and dump your primary (along with the condo) after you close on the cheaper house. Your credit will be wrecked, but you’ll be freer.

Now, I can only tell you what you CAN do, I’m not advocating the above plan. Afterall, that would be unethical. 😉

P.S. If it’s non-recourse, I don’t know how you will get out of it. Someone on here posted that you could. I would run that by a lawyer.

[Anonymous]

Tavo, no, I’m not going to say anything so arrogant as I wouldn’t put myself into the same situation. We all makes mistakes.

How much equity have you lost in your current resident? As far as the condo goes, you’re already losing 1k a month, who knows when the market will turn around to the point where you are not losing that kind of money. Can you really afford it like you say? If you can’t, you need to dump it yesterday.

What I would do? If it were me, I would dump the condo (don’t know how much you paid for it though). As far as the house, if you didn’t purchase it at a ridiculously overvalued price, can afford it, like it a lot, and plan to stay in it for the long term, keep it. If you can’t answer yes to the above, you could find another primary residence just as nice for a cheaper price and dump your primary (along with the condo) after you close on the cheaper house. Your credit will be wrecked, but you’ll be freer.

Now, I can only tell you what you CAN do, I’m not advocating the above plan. Afterall, that would be unethical. 😉

P.S. If it’s non-recourse, I don’t know how you will get out of it. Someone on here posted that you could. I would run that by a lawyer.

[Anonymous]

Tavo, no, I’m not going to say anything so arrogant as I wouldn’t put myself into the same situation. We all makes mistakes.

How much equity have you lost in your current resident? As far as the condo goes, you’re already losing 1k a month, who knows when the market will turn around to the point where you are not losing that kind of money. Can you really afford it like you say? If you can’t, you need to dump it yesterday.

What I would do? If it were me, I would dump the condo (don’t know how much you paid for it though). As far as the house, if you didn’t purchase it at a ridiculously overvalued price, can afford it, like it a lot, and plan to stay in it for the long term, keep it. If you can’t answer yes to the above, you could find another primary residence just as nice for a cheaper price and dump your primary (along with the condo) after you close on the cheaper house. Your credit will be wrecked, but you’ll be freer.

Now, I can only tell you what you CAN do, I’m not advocating the above plan. Afterall, that would be unethical. 😉

P.S. If it’s non-recourse, I don’t know how you will get out of it. Someone on here posted that you could. I would run that by a lawyer.

[Tavo]

Marion,

No worries about the “prickly” responses. I need to hear it.

So, what would you do if you were me? Please don’t say that you wouldn’t be stupid enough to put yourself in this situation. That does me no good.

Also, you all assume that my credit will only suffer. Apparently a recourse loan is exactly what it means. I may be pretty f*cked…

[Tavo]

Marion,

No worries about the “prickly” responses. I need to hear it.

So, what would you do if you were me? Please don’t say that you wouldn’t be stupid enough to put yourself in this situation. That does me no good.

Also, you all assume that my credit will only suffer. Apparently a recourse loan is exactly what it means. I may be pretty f*cked…

[Tavo]

Marion,

No worries about the “prickly” responses. I need to hear it.

So, what would you do if you were me? Please don’t say that you wouldn’t be stupid enough to put yourself in this situation. That does me no good.

Also, you all assume that my credit will only suffer. Apparently a recourse loan is exactly what it means. I may be pretty f*cked…

[Tavo]

Marion,

No worries about the “prickly” responses. I need to hear it.

So, what would you do if you were me? Please don’t say that you wouldn’t be stupid enough to put yourself in this situation. That does me no good.

Also, you all assume that my credit will only suffer. Apparently a recourse loan is exactly what it means. I may be pretty f*cked…

[Anonymous]

Self-respect? lmao. Yeah, right. When it comes to losing a huge chunk of money, principles (i.e. self-respect) have a way of taking a back seat.

Tavo, I’m not trying to give you a hard time, so I’ll cease on this subject because I can be annoying at times. I just find it hard to believe that you would continue to take a 1k loss for the foreseeable future and several years beyond that in reverence to your self-respect if there was any way you could use the system and get out of this.

Could you benefit if you put that 1k into an investment that gives you a nice return on your money? Think about you and your family. In the end, self-preservation is going to win out over your so-called “self-respect”. You know it and and I know it. That’s what I meant by “cut the sh*t”.

[Anonymous]

Self-respect? lmao. Yeah, right. When it comes to losing a huge chunk of money, principles (i.e. self-respect) have a way of taking a back seat.

Tavo, I’m not trying to give you a hard time, so I’ll cease on this subject because I can be annoying at times. I just find it hard to believe that you would continue to take a 1k loss for the foreseeable future and several years beyond that in reverence to your self-respect if there was any way you could use the system and get out of this.

Could you benefit if you put that 1k into an investment that gives you a nice return on your money? Think about you and your family. In the end, self-preservation is going to win out over your so-called “self-respect”. You know it and and I know it. That’s what I meant by “cut the sh*t”.

[Anonymous]

Self-respect? lmao. Yeah, right. When it comes to losing a huge chunk of money, principles (i.e. self-respect) have a way of taking a back seat.

Tavo, I’m not trying to give you a hard time, so I’ll cease on this subject because I can be annoying at times. I just find it hard to believe that you would continue to take a 1k loss for the foreseeable future and several years beyond that in reverence to your self-respect if there was any way you could use the system and get out of this.

Could you benefit if you put that 1k into an investment that gives you a nice return on your money? Think about you and your family. In the end, self-preservation is going to win out over your so-called “self-respect”. You know it and and I know it. That’s what I meant by “cut the sh*t”.

[Anonymous]

Self-respect? lmao. Yeah, right. When it comes to losing a huge chunk of money, principles (i.e. self-respect) have a way of taking a back seat.

Tavo, I’m not trying to give you a hard time, so I’ll cease on this subject because I can be annoying at times. I just find it hard to believe that you would continue to take a 1k loss for the foreseeable future and several years beyond that in reverence to your self-respect if there was any way you could use the system and get out of this.

Could you benefit if you put that 1k into an investment that gives you a nice return on your money? Think about you and your family. In the end, self-preservation is going to win out over your so-called “self-respect”. You know it and and I know it. That’s what I meant by “cut the sh*t”.

[Tavo]

Sandi Egan,

I agree, I doubt the banks will negotiate with a “good” borrower until they fall behind and are forced to. Maybe the housing crisis will encourage banks to do this at some point, but I’m not holding my breath.

In regards to credit, I guess it’s really just a matter of self-respect. At this point, I I’ve come to the realization that anything I buy will be in cash for the next few years.

PW,

Thanks for the dire outlook. I just gave my tenant a call to make sure he is comfy and enjoying San Diego.

[Tavo]

Sandi Egan,

I agree, I doubt the banks will negotiate with a “good” borrower until they fall behind and are forced to. Maybe the housing crisis will encourage banks to do this at some point, but I’m not holding my breath.

In regards to credit, I guess it’s really just a matter of self-respect. At this point, I I’ve come to the realization that anything I buy will be in cash for the next few years.

PW,

Thanks for the dire outlook. I just gave my tenant a call to make sure he is comfy and enjoying San Diego.

[Tavo]

Sandi Egan,

I agree, I doubt the banks will negotiate with a “good” borrower until they fall behind and are forced to. Maybe the housing crisis will encourage banks to do this at some point, but I’m not holding my breath.

In regards to credit, I guess it’s really just a matter of self-respect. At this point, I I’ve come to the realization that anything I buy will be in cash for the next few years.

PW,

Thanks for the dire outlook. I just gave my tenant a call to make sure he is comfy and enjoying San Diego.

[Tavo]

Sandi Egan,

I agree, I doubt the banks will negotiate with a “good” borrower until they fall behind and are forced to. Maybe the housing crisis will encourage banks to do this at some point, but I’m not holding my breath.

In regards to credit, I guess it’s really just a matter of self-respect. At this point, I I’ve come to the realization that anything I buy will be in cash for the next few years.

PW,

Thanks for the dire outlook. I just gave my tenant a call to make sure he is comfy and enjoying San Diego.

[Sandi Egan]

Maybe it will be possible to negotiate a short sale with the bank(s)? I don’t know if they’d do that before you become delinquent, though.

Just out of curiosity, what do you need good credit for?

[Sandi Egan]

Maybe it will be possible to negotiate a short sale with the bank(s)? I don’t know if they’d do that before you become delinquent, though.

Just out of curiosity, what do you need good credit for?

[Sandi Egan]

Maybe it will be possible to negotiate a short sale with the bank(s)? I don’t know if they’d do that before you become delinquent, though.

Just out of curiosity, what do you need good credit for?

[Sandi Egan]

Maybe it will be possible to negotiate a short sale with the bank(s)? I don’t know if they’d do that before you become delinquent, though.

Just out of curiosity, what do you need good credit for?

[patientlywaiting]

Tavo, I’m going to write the end of the script.

(Just joking).

Two years from now, you’ll be back here writing that you lost your job in the recession and that you’re about to lose your investment as well as your North Park house. You’ll want a bailout and you’ll look to deflect your irresponsibily onto the illegals aliens and the terrorists in Iraq.

California will pass Proposition 187#2 and we’ll invade Iran.

Were’re then all screwed.

*

In all seriousness, If I were you, I’d sell the condo now and take my lumps. Prices have a long way to go. Your North Park house may go down to $300k.

[patientlywaiting]

Tavo, I’m going to write the end of the script.

(Just joking).

Two years from now, you’ll be back here writing that you lost your job in the recession and that you’re about to lose your investment as well as your North Park house. You’ll want a bailout and you’ll look to deflect your irresponsibily onto the illegals aliens and the terrorists in Iraq.

California will pass Proposition 187#2 and we’ll invade Iran.

Were’re then all screwed.

*

In all seriousness, If I were you, I’d sell the condo now and take my lumps. Prices have a long way to go. Your North Park house may go down to $300k.

[patientlywaiting]

Tavo, I’m going to write the end of the script.

(Just joking).

Two years from now, you’ll be back here writing that you lost your job in the recession and that you’re about to lose your investment as well as your North Park house. You’ll want a bailout and you’ll look to deflect your irresponsibily onto the illegals aliens and the terrorists in Iraq.

California will pass Proposition 187#2 and we’ll invade Iran.

Were’re then all screwed.

*

In all seriousness, If I were you, I’d sell the condo now and take my lumps. Prices have a long way to go. Your North Park house may go down to $300k.

[patientlywaiting]

Tavo, I’m going to write the end of the script.

(Just joking).

Two years from now, you’ll be back here writing that you lost your job in the recession and that you’re about to lose your investment as well as your North Park house. You’ll want a bailout and you’ll look to deflect your irresponsibily onto the illegals aliens and the terrorists in Iraq.

California will pass Proposition 187#2 and we’ll invade Iran.

Were’re then all screwed.

*

In all seriousness, If I were you, I’d sell the condo now and take my lumps. Prices have a long way to go. Your North Park house may go down to $300k.

[IONEGARM]

** THIS IS NOT LEGAL ADVICE **

If they pursue a trustee sale they give up the right to go after you for the difference. So it won’t matter if it is recourse or non-recourse. (check with a lawyer, I am not one, nor should I be listened to)

There are very few judicial foreclosures done in California and for a dinky condo in SD they probably wouldn’t bother (I say probably just so you don’t think it is a definite thing, but ask around about how many judicial foreclosures are done).

Depending on how convinced you are things are going south you could stop paying on everything and save your duckets (it’ll be 4 months minimum if not more of savings) and try again in 2 years OR renegotiate with loss mit on your current house or condo. The more contact you have with your servicer the more choices you will be aware of.

Just throwing out ideas. I’d call your servicer and see what they offer.

Other ideas include short sales or short refis (might be able to get the condo cash flow positive with the right loan).

[IONEGARM]

** THIS IS NOT LEGAL ADVICE **

If they pursue a trustee sale they give up the right to go after you for the difference. So it won’t matter if it is recourse or non-recourse. (check with a lawyer, I am not one, nor should I be listened to)

There are very few judicial foreclosures done in California and for a dinky condo in SD they probably wouldn’t bother (I say probably just so you don’t think it is a definite thing, but ask around about how many judicial foreclosures are done).

Depending on how convinced you are things are going south you could stop paying on everything and save your duckets (it’ll be 4 months minimum if not more of savings) and try again in 2 years OR renegotiate with loss mit on your current house or condo. The more contact you have with your servicer the more choices you will be aware of.

Just throwing out ideas. I’d call your servicer and see what they offer.

Other ideas include short sales or short refis (might be able to get the condo cash flow positive with the right loan).

[IONEGARM]

** THIS IS NOT LEGAL ADVICE **

If they pursue a trustee sale they give up the right to go after you for the difference. So it won’t matter if it is recourse or non-recourse. (check with a lawyer, I am not one, nor should I be listened to)

There are very few judicial foreclosures done in California and for a dinky condo in SD they probably wouldn’t bother (I say probably just so you don’t think it is a definite thing, but ask around about how many judicial foreclosures are done).

Depending on how convinced you are things are going south you could stop paying on everything and save your duckets (it’ll be 4 months minimum if not more of savings) and try again in 2 years OR renegotiate with loss mit on your current house or condo. The more contact you have with your servicer the more choices you will be aware of.

Just throwing out ideas. I’d call your servicer and see what they offer.

Other ideas include short sales or short refis (might be able to get the condo cash flow positive with the right loan).

[IONEGARM]

** THIS IS NOT LEGAL ADVICE **

If they pursue a trustee sale they give up the right to go after you for the difference. So it won’t matter if it is recourse or non-recourse. (check with a lawyer, I am not one, nor should I be listened to)

There are very few judicial foreclosures done in California and for a dinky condo in SD they probably wouldn’t bother (I say probably just so you don’t think it is a definite thing, but ask around about how many judicial foreclosures are done).

Depending on how convinced you are things are going south you could stop paying on everything and save your duckets (it’ll be 4 months minimum if not more of savings) and try again in 2 years OR renegotiate with loss mit on your current house or condo. The more contact you have with your servicer the more choices you will be aware of.

Just throwing out ideas. I’d call your servicer and see what they offer.

Other ideas include short sales or short refis (might be able to get the condo cash flow positive with the right loan).

[Tavo]

I meant “constructive” advice

[Tavo]

I meant “constructive” advice

[Tavo]

I meant “constructive” advice

[Tavo]

I meant “constructive” advice

[Tavo]

marion,

Looking for constructing advice NOT related to a default.

Sd Nerd

“What are the purchase prices?”
350k for the condo and $550k for the home (3 bed 3 bath 1,650 sq ft Craftsman with a 6,500 sq ft lot in Morley Field)

“If you re-financed the condo, it’s almost surely recourse now. Have you re-financed the house and/or do you enjoy living in the house?”
Yes, love living in Morley Field and have a 7 yr Option-Arm at 6%. I plan on being here for a long time (maybe my last home). Reason I got the Option-Arm was if I got in real cash flow pinch (lost job etc.), I have the option to pay the I-O. I need the flexibility just in case but am making the P&I. I have not “re-fied”

[Tavo]

marion,

Looking for constructing advice NOT related to a default.

Sd Nerd

“What are the purchase prices?”
350k for the condo and $550k for the home (3 bed 3 bath 1,650 sq ft Craftsman with a 6,500 sq ft lot in Morley Field)

“If you re-financed the condo, it’s almost surely recourse now. Have you re-financed the house and/or do you enjoy living in the house?”
Yes, love living in Morley Field and have a 7 yr Option-Arm at 6%. I plan on being here for a long time (maybe my last home). Reason I got the Option-Arm was if I got in real cash flow pinch (lost job etc.), I have the option to pay the I-O. I need the flexibility just in case but am making the P&I. I have not “re-fied”

[Tavo]

marion,

Looking for constructing advice NOT related to a default.

Sd Nerd

“What are the purchase prices?”
350k for the condo and $550k for the home (3 bed 3 bath 1,650 sq ft Craftsman with a 6,500 sq ft lot in Morley Field)

“If you re-financed the condo, it’s almost surely recourse now. Have you re-financed the house and/or do you enjoy living in the house?”
Yes, love living in Morley Field and have a 7 yr Option-Arm at 6%. I plan on being here for a long time (maybe my last home). Reason I got the Option-Arm was if I got in real cash flow pinch (lost job etc.), I have the option to pay the I-O. I need the flexibility just in case but am making the P&I. I have not “re-fied”

[Tavo]

marion,

Looking for constructing advice NOT related to a default.

Sd Nerd

“What are the purchase prices?”
350k for the condo and $550k for the home (3 bed 3 bath 1,650 sq ft Craftsman with a 6,500 sq ft lot in Morley Field)

“If you re-financed the condo, it’s almost surely recourse now. Have you re-financed the house and/or do you enjoy living in the house?”
Yes, love living in Morley Field and have a 7 yr Option-Arm at 6%. I plan on being here for a long time (maybe my last home). Reason I got the Option-Arm was if I got in real cash flow pinch (lost job etc.), I have the option to pay the I-O. I need the flexibility just in case but am making the P&I. I have not “re-fied”

[Anonymous]

Submitted by Tavo on March 28, 2008 – 4:16pm.

Credit get screwed if you default on a loan (recourse or not). Like I said, I can afford the payment and don’t want my credit to get screwed. So, no, I’m not considering that option at this point. Seriously, you are reading into my last statement way too much.

What are you asking then?…

[Anonymous]

Submitted by Tavo on March 28, 2008 – 4:16pm.

Credit get screwed if you default on a loan (recourse or not). Like I said, I can afford the payment and don’t want my credit to get screwed. So, no, I’m not considering that option at this point. Seriously, you are reading into my last statement way too much.

What are you asking then?…

[Anonymous]

Submitted by Tavo on March 28, 2008 – 4:16pm.

Credit get screwed if you default on a loan (recourse or not). Like I said, I can afford the payment and don’t want my credit to get screwed. So, no, I’m not considering that option at this point. Seriously, you are reading into my last statement way too much.

What are you asking then?…

[Anonymous]

Submitted by Tavo on March 28, 2008 – 4:16pm.

Credit get screwed if you default on a loan (recourse or not). Like I said, I can afford the payment and don’t want my credit to get screwed. So, no, I’m not considering that option at this point. Seriously, you are reading into my last statement way too much.

What are you asking then?…

[Tavo]

Credit get screwed if you default on a loan (recourse or not). Like I said, I can afford the payment and don’t want my credit to get screwed. So, no, I’m not considering that option at this point. Seriously, you are reading into my last statement way too much.

[Tavo]

Credit get screwed if you default on a loan (recourse or not). Like I said, I can afford the payment and don’t want my credit to get screwed. So, no, I’m not considering that option at this point. Seriously, you are reading into my last statement way too much.

[Tavo]

Credit get screwed if you default on a loan (recourse or not). Like I said, I can afford the payment and don’t want my credit to get screwed. So, no, I’m not considering that option at this point. Seriously, you are reading into my last statement way too much.

[Tavo]

Credit get screwed if you default on a loan (recourse or not). Like I said, I can afford the payment and don’t want my credit to get screwed. So, no, I’m not considering that option at this point. Seriously, you are reading into my last statement way too much.

[Anonymous]

Ok, you just said you don’t want to mess up your credit. However, if the loan is non-recourse and you walk, you mess up your credit. So what are you asking then?

You just said you can afford the $1k a month loss by renting it out. So, what are you asking then?

We both agree it was a bad investment.

If your loan was non-recourse, you could dump the house, come out smelling like a rose and GET OVER. But it’s not, so that’s not gonna happen.

Cut the sh*t please.

[Anonymous]

Ok, you just said you don’t want to mess up your credit. However, if the loan is non-recourse and you walk, you mess up your credit. So what are you asking then?

You just said you can afford the $1k a month loss by renting it out. So, what are you asking then?

We both agree it was a bad investment.

If your loan was non-recourse, you could dump the house, come out smelling like a rose and GET OVER. But it’s not, so that’s not gonna happen.

Cut the sh*t please.

[Anonymous]

Ok, you just said you don’t want to mess up your credit. However, if the loan is non-recourse and you walk, you mess up your credit. So what are you asking then?

You just said you can afford the $1k a month loss by renting it out. So, what are you asking then?

We both agree it was a bad investment.

If your loan was non-recourse, you could dump the house, come out smelling like a rose and GET OVER. But it’s not, so that’s not gonna happen.

Cut the sh*t please.

[Anonymous]

Ok, you just said you don’t want to mess up your credit. However, if the loan is non-recourse and you walk, you mess up your credit. So what are you asking then?

You just said you can afford the $1k a month loss by renting it out. So, what are you asking then?

We both agree it was a bad investment.

If your loan was non-recourse, you could dump the house, come out smelling like a rose and GET OVER. But it’s not, so that’s not gonna happen.

Cut the sh*t please.

[vagabondo]

The one problem I see with your downtown landlord situation is the sheer number of units currently on the market and those about to come onto the market. Most of those cranes you see are working on residential buildings. IMO the downward pressure on rents will continue as supply increases.

I love Downtown but I don’t understand the condo building going on there. Unlike Manhattan, Downtown SD has relatively little to no corporate base and limited job diversity. There will always be those who will want to live in Downtown. There just doesn’t seem to be the critical mass to support the supply there (at least at recent prices). I also believe the premium $/sq. ft. condos are the newer buildings.

In short, scrape up some cash and dump it as soon as you can.

[vagabondo]

The one problem I see with your downtown landlord situation is the sheer number of units currently on the market and those about to come onto the market. Most of those cranes you see are working on residential buildings. IMO the downward pressure on rents will continue as supply increases.

I love Downtown but I don’t understand the condo building going on there. Unlike Manhattan, Downtown SD has relatively little to no corporate base and limited job diversity. There will always be those who will want to live in Downtown. There just doesn’t seem to be the critical mass to support the supply there (at least at recent prices). I also believe the premium $/sq. ft. condos are the newer buildings.

In short, scrape up some cash and dump it as soon as you can.

[vagabondo]

The one problem I see with your downtown landlord situation is the sheer number of units currently on the market and those about to come onto the market. Most of those cranes you see are working on residential buildings. IMO the downward pressure on rents will continue as supply increases.

I love Downtown but I don’t understand the condo building going on there. Unlike Manhattan, Downtown SD has relatively little to no corporate base and limited job diversity. There will always be those who will want to live in Downtown. There just doesn’t seem to be the critical mass to support the supply there (at least at recent prices). I also believe the premium $/sq. ft. condos are the newer buildings.

In short, scrape up some cash and dump it as soon as you can.

[vagabondo]

The one problem I see with your downtown landlord situation is the sheer number of units currently on the market and those about to come onto the market. Most of those cranes you see are working on residential buildings. IMO the downward pressure on rents will continue as supply increases.

I love Downtown but I don’t understand the condo building going on there. Unlike Manhattan, Downtown SD has relatively little to no corporate base and limited job diversity. There will always be those who will want to live in Downtown. There just doesn’t seem to be the critical mass to support the supply there (at least at recent prices). I also believe the premium $/sq. ft. condos are the newer buildings.

In short, scrape up some cash and dump it as soon as you can.

[vagabondo]

The one problem I see with your downtown landlord situation is the sheer number of units currently on the market and those about to come onto the market. Most of those cranes you see are working on residential buildings. IMO the downward pressure on rents will continue as supply increases.

I love Downtown but I don’t understand the condo building going on there. Unlike Manhattan, Downtown SD has relatively little to no corporate base and limited job diversity. There will always be those who will want to live in Downtown. There just doesn’t seem to be the critical mass to support the supply there (at least at recent prices). I also believe the premium $/sq. ft. condos are the newer buildings.

In short, scrape up some cash and dump it as soon as you can.

[Tavo]

No, not asking for permission. If that’s what I was asking for I’d go straight to “youwalk.com” or something like that. While this is currently a very bad investent for me, I don’t want to screw up my credit. Of course, if it comes to feeding my family or walking, yea I’d walk. Thank god I’m not in that position and can afford the $1k loss. Thanks for the insightful response….

[Tavo]

No, not asking for permission. If that’s what I was asking for I’d go straight to “youwalk.com” or something like that. While this is currently a very bad investent for me, I don’t want to screw up my credit. Of course, if it comes to feeding my family or walking, yea I’d walk. Thank god I’m not in that position and can afford the $1k loss. Thanks for the insightful response….

[Tavo]

No, not asking for permission. If that’s what I was asking for I’d go straight to “youwalk.com” or something like that. While this is currently a very bad investent for me, I don’t want to screw up my credit. Of course, if it comes to feeding my family or walking, yea I’d walk. Thank god I’m not in that position and can afford the $1k loss. Thanks for the insightful response….

[Tavo]

No, not asking for permission. If that’s what I was asking for I’d go straight to “youwalk.com” or something like that. While this is currently a very bad investent for me, I don’t want to screw up my credit. Of course, if it comes to feeding my family or walking, yea I’d walk. Thank god I’m not in that position and can afford the $1k loss. Thanks for the insightful response….

[Anonymous]

Just a couple of comments before those a lot more knowledgeable about the market weigh in.

First, let’s cut the sh*t. Why are you asking about walking if you don’t think it’s the right thing to do?? My point is, you HAVE thought about walking and that’s exactly what you’re going to do if it’s in your own best interest. Can you afford the 1k a month? Even if you can, if you can get out of it, you’re gonna walk. Are you asking for permission?

If the loan is non-recourse, you’re screwed.

[Anonymous]

Just a couple of comments before those a lot more knowledgeable about the market weigh in.

First, let’s cut the sh*t. Why are you asking about walking if you don’t think it’s the right thing to do?? My point is, you HAVE thought about walking and that’s exactly what you’re going to do if it’s in your own best interest. Can you afford the 1k a month? Even if you can, if you can get out of it, you’re gonna walk. Are you asking for permission?

If the loan is non-recourse, you’re screwed.

[Anonymous]

Just a couple of comments before those a lot more knowledgeable about the market weigh in.

First, let’s cut the sh*t. Why are you asking about walking if you don’t think it’s the right thing to do?? My point is, you HAVE thought about walking and that’s exactly what you’re going to do if it’s in your own best interest. Can you afford the 1k a month? Even if you can, if you can get out of it, you’re gonna walk. Are you asking for permission?

If the loan is non-recourse, you’re screwed.

[Anonymous]

Just a couple of comments before those a lot more knowledgeable about the market weigh in.

First, let’s cut the sh*t. Why are you asking about walking if you don’t think it’s the right thing to do?? My point is, you HAVE thought about walking and that’s exactly what you’re going to do if it’s in your own best interest. Can you afford the 1k a month? Even if you can, if you can get out of it, you’re gonna walk. Are you asking for permission?

If the loan is non-recourse, you’re screwed.

[lonestar2000]

Tavo,

Perform a little calculation and choose the best option.

Calculate how much you’d lose by selling, versus ‘sticking it out’ for the next several years. Add in the extra pain of being a landlord for the duration, time is money after all and being a landlord can be extremely time consuming.
If, on the other hand, the condo is near the beach, it may be worth keeping to have a place to vacation at (in between tenants).

Assign values to the pros and cons and adjust your calculation accordingly. It should not be too difficult to see which option is best for your situation.

[Tavo]

Lonestar,

That is the question. What exactly is “the next several years.” I need an exact number to calculate this hold vs sell analysis. Is it 2, 5, 10??? Will rents increase/ decrease in next “several years”? Your guess is as good as mine. Mix our predictions with with the Fed’s plans and who knows.

The good thing about being a landlord is that I don’t mind dealing with my tenant (but, he’s pretty great) and I married into a family of contractors, so repair work can get completed fairly cheaply. If I decide to keep it, I will almost certainly get my RE license and work the required hours to write off as many losses as possible. This may help some…

[Tavo]

Lonestar,

That is the question. What exactly is “the next several years.” I need an exact number to calculate this hold vs sell analysis. Is it 2, 5, 10??? Will rents increase/ decrease in next “several years”? Your guess is as good as mine. Mix our predictions with with the Fed’s plans and who knows.

The good thing about being a landlord is that I don’t mind dealing with my tenant (but, he’s pretty great) and I married into a family of contractors, so repair work can get completed fairly cheaply. If I decide to keep it, I will almost certainly get my RE license and work the required hours to write off as many losses as possible. This may help some…

[Tavo]

Lonestar,

That is the question. What exactly is “the next several years.” I need an exact number to calculate this hold vs sell analysis. Is it 2, 5, 10??? Will rents increase/ decrease in next “several years”? Your guess is as good as mine. Mix our predictions with with the Fed’s plans and who knows.

The good thing about being a landlord is that I don’t mind dealing with my tenant (but, he’s pretty great) and I married into a family of contractors, so repair work can get completed fairly cheaply. If I decide to keep it, I will almost certainly get my RE license and work the required hours to write off as many losses as possible. This may help some…

[Tavo]

Lonestar,

That is the question. What exactly is “the next several years.” I need an exact number to calculate this hold vs sell analysis. Is it 2, 5, 10??? Will rents increase/ decrease in next “several years”? Your guess is as good as mine. Mix our predictions with with the Fed’s plans and who knows.

The good thing about being a landlord is that I don’t mind dealing with my tenant (but, he’s pretty great) and I married into a family of contractors, so repair work can get completed fairly cheaply. If I decide to keep it, I will almost certainly get my RE license and work the required hours to write off as many losses as possible. This may help some…

[Tavo]

Lonestar,

That is the question. What exactly is “the next several years.” I need an exact number to calculate this hold vs sell analysis. Is it 2, 5, 10??? Will rents increase/ decrease in next “several years”? Your guess is as good as mine. Mix our predictions with with the Fed’s plans and who knows.

The good thing about being a landlord is that I don’t mind dealing with my tenant (but, he’s pretty great) and I married into a family of contractors, so repair work can get completed fairly cheaply. If I decide to keep it, I will almost certainly get my RE license and work the required hours to write off as many losses as possible. This may help some…

[lonestar2000]

Tavo,

Perform a little calculation and choose the best option.

Calculate how much you’d lose by selling, versus ‘sticking it out’ for the next several years. Add in the extra pain of being a landlord for the duration, time is money after all and being a landlord can be extremely time consuming.
If, on the other hand, the condo is near the beach, it may be worth keeping to have a place to vacation at (in between tenants).

Assign values to the pros and cons and adjust your calculation accordingly. It should not be too difficult to see which option is best for your situation.

[lonestar2000]

Tavo,

Perform a little calculation and choose the best option.

Calculate how much you’d lose by selling, versus ‘sticking it out’ for the next several years. Add in the extra pain of being a landlord for the duration, time is money after all and being a landlord can be extremely time consuming.
If, on the other hand, the condo is near the beach, it may be worth keeping to have a place to vacation at (in between tenants).

Assign values to the pros and cons and adjust your calculation accordingly. It should not be too difficult to see which option is best for your situation.

[lonestar2000]

Tavo,

Perform a little calculation and choose the best option.

Calculate how much you’d lose by selling, versus ‘sticking it out’ for the next several years. Add in the extra pain of being a landlord for the duration, time is money after all and being a landlord can be extremely time consuming.
If, on the other hand, the condo is near the beach, it may be worth keeping to have a place to vacation at (in between tenants).

Assign values to the pros and cons and adjust your calculation accordingly. It should not be too difficult to see which option is best for your situation.

[lonestar2000]

Tavo,

Perform a little calculation and choose the best option.

Calculate how much you’d lose by selling, versus ‘sticking it out’ for the next several years. Add in the extra pain of being a landlord for the duration, time is money after all and being a landlord can be extremely time consuming.
If, on the other hand, the condo is near the beach, it may be worth keeping to have a place to vacation at (in between tenants).

Assign values to the pros and cons and adjust your calculation accordingly. It should not be too difficult to see which option is best for your situation.

[Author]

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