I can't sell or refinance my rental property. Short sale, foreclosure or bankruptcy. Which is best to do?
Question:
You may be forced to sell you condo if you do a bankrupcy.
Try a short sale if possible, but you will pay tax on the ammount forgiven
i have a question...did you run the numbers, do a due dilligence on the property before you bought it?
depends on the state and if it's a judicial foreclosure or not. Generally, short sale is your best option.
Regards
flippers 'sell' properties all the time at more than they are 'worth', so why can't you?
what you want to set up is a lease to own deal. That lets you set the future buyout price above what you owe. You also can receive more cash than the current amount of rent -- which should let you continue to make the payments.
you do want to make sure your cash received exceeds your cah outflows.
have fun!
you are not alone. as i am sure you know --especially after listening to the Bush speech today.
Your situation is so common right now and it is part of what is driving the high foreclosure rate.
Lets see...short sale you might end up still owing money (depending on your contract)
Bankruptcy - you will find it extremely hard to get property again for 7+ years
foreclosure - the federal government gives you the right to purchase property again 24 months after the date of foreclosure (as long as you keep the rest of your credit clean)
Here is a website for you that details the foreclosure laws and timelines for your state:
http://www.foreclosures.com/pages/state_...
good luck :)
I have rental properties as well. I also got caught up in what looks like you have done, which is cashed out on the deal on an inflated appraisal, and now that you want to refinance, you can't. If this is your situation, I will tell you what I did. I went back to the same bank that originally did my mortgage, and told them that basically they were the ones that hired the appraisers who inflated the appraisal, and they need to make my refinance work this time around as well. And you know what? They did. The bank doesn't want you to fail on your loan. I don't know how your rental properties are set up, whether in your name or an LLC, but if they are all together with your condo, the best thing to do is to put your CONDO in another name or trust. The reason I say condo, is because if you legally separate your rental properties from your condo and then foreclose on them, it may come back on you that you intentionally set them up because you knew you were going to foreclose. I would definitely consult not only a real estate attorney, but an accountant that specializes in real estate investing. From your question, it looks like we are in similar situations, but I was able to refinance because I basically put the blame on the bank, and secondly, I am doing my best to keep them rented until we come out of this housing slump.
More Related Questions & Answers...