Financial Challenges Support Group
This community is for people who are struggling to meet financial obligations of any kind. Financial challenges include everything from the day-to-day challenges of making ends meet to managing credit card debt to bankruptcy. Get support from others who are going through similar obstacles on the road back to financial stability.
First I'd like to say hello to everyone!
Background: I took a beating between the late 90s and mid 2000s with 4 two family income properties and two bouts of unemployment. Trashed my credit. By 2006 I had sold 3 of the properties and lived in the upstairs unit of the remaining one. In 2007 I moved to a different city. I've worked on my credit (it was in the low 500s) and it's back up to almost 700 on all three reporting agencies. Still have some negatives but most will fall off this year and one in 2012. I was able to get a loan for a 2010 Silverado at a decent rate (5.5%) and I've picked up a couple of credit cards that I'm making timely payments against.
Okay, now my situation. I'm at a juncture in my life. I've been dating a lady for almost 4 months, and it's just clicked. We've already talked about marriage, but I have a financial problem. The last run-down two family house that I'm paying a mortgage on and neither unit is rentable (they both need work), and I live in a different city 2.5 hours away and rent a house. My finances are stretched and I can't seem to come up with the cash to either fix the house and I doubt I can even sell it for the principal due (roughly 52K).
My girlfriend is divorced with three triplet 10 year old boys and she's out of work and getting by on child support. Her house and car are payed off, but her ex is a real jerk and he sometimes messes with his child support payments, his share of daycare, etc... I want to marry this lady, but I can't until I get rid of that last blasted income property.
Right now the weight of the world seems to be on my shoulders. I know what I have to do. Plan A is put my house on the market and plan B is to get one unit rentable and then work on the second unit.
Does anyone know of, or have any advice for selling a house where I might not be able to get what's owed on the mortgage? Some form of creative financing? Keep in mind I don't have much liquidity, nor assets I can redeem to make up the difference between sell price and balance due on the mortgage.
Background: I took a beating between the late 90s and mid 2000s with 4 two family income properties and two bouts of unemployment. Trashed my credit. By 2006 I had sold 3 of the properties and lived in the upstairs unit of the remaining one. In 2007 I moved to a different city. I've worked on my credit (it was in the low 500s) and it's back up to almost 700 on all three reporting agencies. Still have some negatives but most will fall off this year and one in 2012. I was able to get a loan for a 2010 Silverado at a decent rate (5.5%) and I've picked up a couple of credit cards that I'm making timely payments against.
Okay, now my situation. I'm at a juncture in my life. I've been dating a lady for almost 4 months, and it's just clicked. We've already talked about marriage, but I have a financial problem. The last run-down two family house that I'm paying a mortgage on and neither unit is rentable (they both need work), and I live in a different city 2.5 hours away and rent a house. My finances are stretched and I can't seem to come up with the cash to either fix the house and I doubt I can even sell it for the principal due (roughly 52K).
My girlfriend is divorced with three triplet 10 year old boys and she's out of work and getting by on child support. Her house and car are payed off, but her ex is a real jerk and he sometimes messes with his child support payments, his share of daycare, etc... I want to marry this lady, but I can't until I get rid of that last blasted income property.
Right now the weight of the world seems to be on my shoulders. I know what I have to do. Plan A is put my house on the market and plan B is to get one unit rentable and then work on the second unit.
Does anyone know of, or have any advice for selling a house where I might not be able to get what's owed on the mortgage? Some form of creative financing? Keep in mind I don't have much liquidity, nor assets I can redeem to make up the difference between sell price and balance due on the mortgage.
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I invited Bill to have dinner with me last Sunday. He wasn't willing to drive 7 hours to mid Michigan and teased me with his beautiful ribs!!! So, of course I ate alone and had cedar salmon
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check out that smoke ring. It tasted really good. I smothered it with Maulls BBQ sauce which is Local to St. Louis and one of the best I ever had.....
Just an idea.....
I figure either that or repair the less costly unit first, rent it out, and then work on the second which needs a new bathroom and kitchen. However I really want to dump the property and get that expense off my budget. Free up $1000 a month.
Perhaps I can sell the house for the principal due and take back a personal note for the difference between that and the offer price. Just to have a certain and for sure closure date at hand. I don't give a rat's you know what if I take a loss. It will finally put an end to my adventure in income property.
I'm stressing not for myself, but for my lady friend that I truly love and care for deeply. Her ex is a real cretin and he's starting to play games with his financial obligations to her and the boys. Heheh, maybe I can hit the lottery and then neither of us would have any worries! ;)
If I didn't have this damned house I would pop the question and I'm 99.99% certain she would answer "Yes".
Looks like the first steps are getting a BPO (Broker Price Opinion) and an actual buyer's offer. Then I can go to my lender and determine if they will do a short sell and get a short sell package from them.