Quote:
Originally Posted by Hatterasguy
They won't short sale an investment property if you have any other assets. IE they will expect you to pump any cash you have into that property to keep it afloat.
If you let it go into forclosure, not only will you ruin your credit, they will come after you for the difference after they auction it off. So if you say have a lot of equity in your primary house, 401k, etc they will get it.
IMHO you have a two options:
1. Keep paying and maybe in 10 years it will come back.
2. Fire sale and come to the closing with a check.
I'd talk to a lawyer about your options, if you went bankrupt you might be able to get out of it. Other than that your stuck.
One more point, at what point will it cash flow? Buying a negative cash flowing property is a horrible idea, but if injecting some cash into it can at least make it break even that might be a way to go. If you can get the monthly cash flow at least even, than it doesn't matter what its worth.
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Not true, they will and do short sale an investment property I handle them all the time.... and they can't take your 401k either unless they can prove that you used the 401K to shield your assets.
Plantman, if you're upside down in the house and its financially crippling you explore the option with the help of an attorney that handles short sales. And don't let the credit score scare drag you into even more debt by dipping into reserves to keep a bad investment afloat. I made that mistake myself, I was so scared of hurting my credit that I sucked a vast cash reserve almost dry to sell properties I was holding I know hind sight is perfect but if I short saled the properties my credit would be restored by now and I would still have my cash........but I have a great credit score that does nothing for me.