FB turned landlord

[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! 

[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! 

[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! 🙂

[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…

[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…

[Author]

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