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10-19-2008, 08:51 PM
| | Junior Member | | Join Date: Oct 2008
Posts: 3
| | | Considering foreclosure for rental property
What is the name of your state (only U.S. law)? Rental in IL, reside in MN
Hello...I own a rental condo in Chicago that I'm upside down on. I owe about 250k, condo is on the market for 199k. Been on the market for one month, got one offer for 140k. I have a renter, so I receive rent of about 1300/month. Mortgage, taxes, associate fee are about 2300/month.
I have two mortgages on the condo....a first and a heloc. I have two mortgages on my home also....first and heloc. All four mortgages are through the same lender, Countrywide.
I have savings and investments of about 300k.
I'm considering my options. It seems that I don't qualify for a short sale because it would be difficult to prove hardship. My question is on foreclosure.
What would happen if I let the property go into foreclosure?
Will the lender attempt to go after my savings/investments?
Does it matter that I have my home loan through the same lender (help me in that I will have continued to pay the mortgages on my home, hurt me if they can use those two loans as leverage somehow)?
Will the lender be less 'stringent' with their procedures since they are swamped with foreclosures, and also in the process of being merged with another lender?
Thank you very much for your help....  |
10-20-2008, 07:32 AM
| | Senior Member | | Join Date: Feb 2007
Posts: 5,487
| | | Doubtful that the mortgage on the other property is going to make a difference. Yes they will definitely try for a deficiency if you have $300K lying around. Why do you feel you can duck your responsibilities on the loans when you could afford to make them right? |
10-20-2008, 10:59 AM
| | Junior Member | | Join Date: Oct 2008
Posts: 3
| | | Thanks for your reply. I wasn't sure how hard they look at each case, especially now since they are swamped.... |
10-20-2008, 12:09 PM
| | Senior Member | | Join Date: Mar 2006
Posts: 5,011
| | | When people are swamped, they ramp up. The banks are getting very good at determining who they can and cannot go after to get deficency judgments. If this were a personal residence, you would have protections. Since this is an investment, they will go after you.
And, may God have mercy on your soul if you default and you lied on your application saying it was to be a personal residence. The banks are starting to get a bit pissy over not getting a fair return when the loan was getting paid.
__________________
When you are a Bear of Very Little Brain, and you Think of Things, you find sometimes that a Thing which seemed very Thingish inside you is quite different when it gets out into the open and has other people looking at it.
--W. T. Pooh (aka A. A. Milne) |
10-20-2008, 03:29 PM
| | Senior Member | | Join Date: May 2000 Location: Catatonic State
Posts: 71,453
| | | I agree, even with the pissy part. |
10-20-2008, 04:12 PM
| | Junior Member | | Join Date: Oct 2008
Posts: 3
| | | Thanks for your comments Tranquility. And....I believe I did say it was a personal residence. Good Lord....I may have to step up the frequency and intensity of my prayers to have a better chance with the Big Man Upstairs! I'm just kidding.
I won't default. I'll get another job (or two) if I have to. I made this bed, so I need to lay in it. I am just checking all options.
Thanks again.... | |
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