How Can I Do This?
I am a financing partner with two properties in the metro Atlanta area, (yes the number one area in the US for MTG fraud), and I have come to realize that the two properties that I hold notes to are severely overvalued since the person ni the area who I partnered with had got sky high appraisals, sold them to me, and pulled all of the equity out of each property. I as the sole person responsible to keep the notes paid have been using equity lines from other properties that I have to float the mortgage for the past two months, but this is probably not the best way to handle the situation since these funds will eventually run out.
Is there a way to re negotiate the rate and term of the loans of each of the Atlanta properties to significantly lower my payments on the loans so that Section 8 renters can cover these two properties until the comps come up in the area?
I know that if the mortgage is in default the lenders start looking at options, but I am presently current with both mortgages and want to keep my credit good. will any bank entertain this?
Quote:
On 2006-11-29 09:53, sbrewton wrote:
I am a financing partner with two properties in the metro Atlanta area, (yes the number one area in the US for MTG fraud), and I have come to realize that the two properties that I hold notes to are severely overvalued since the person ni the area who I partnered with had got sky high appraisals, sold them to me, and pulled all of the equity out of each property.
I have got to say that I am very confused at this point????
Do you hold the note or do you owe on the note?
Are you a partner or did you buy the propeties from this person?
Looks like that is the sad truth of it... I just want to know the best way to trudge through. Should I deed them back to bank and take the credit hit? Maybe float them, re hab and then section 8 them for not so much of a monthly loss?
What would the more seasoned investors do in such a situation?
KP the units are not presently rented, but I was planning to put up a little rehab money in each to make them rentable and "slow the bleeding". Thanks for the advice and I will keep looking toward non conventional methods of thinking outside the box to increase cashflow. I invite all suggestions at this point.