Quote:
Originally Posted by el presidente
Agreed.
My statement assumes that Plantman hasn't yet fallen behind on his payments.
A bank will not likely enter into negotiations with a property owner unless they have already fallen behind on their payments. In other words - a short sale won't happen without "pain" in the form of ruined credit or other remedy to the bank.
To me, "walking away" implies Plantman is current on his payments, but doesn't want to continue sinking more dollars into the property for financial reasons.
In determining whether to agree to a short sale, his lender will look at his financial picture and wonder why he:
1. Still has an income that can pay for the note.
2. Has $XX,000.00 in equity in his primary residence
3. Is current on the payments
As they peer into his world, they will wonder why they (the bank) are the only one 'losing' in this scenario. They very well may deny considering a short sale until he defaults, loses his income or has no other assets from which to draw equity from.
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You have assumed correctly on all points. I have not made lated payments on anything, yet, and hopefully I won't. Just exploring options in the event I do fall behind.
The checks I usually receive in the mail for my business are coming further and further apart.
I don't want to declare bankruptcy, nor will I if my income stays at it's current level, even if I ge paid a little slower. I'll just have to reorganize and prioritize.
I have used credit cards and other financing to keep my business solvent, in addition to maintaining a certain lifestyle(bad move), which is my number one priority in terms of debt elimination.
I contacted consumer credit, and can conservatively be debt free of all of my other obligations in 3 years. That's being very conservative as I plan on knocking off a large chunk of the 60k my business owes before the end of the year. At least 20-30% if all goes as planned. I have not signed up yet, but may do so in the next week or so.
Repaired, or slow credit is way better than bankruptcy.
I will approach my bank about the property and see what they say, they may tell me to go fork myself! HA!
In anticipation of perhaps a continuing downturn,