What To Do With Property
I have a duplex. Both sides rented out cash flows about $100 a month. Not much at all but I bought it as my first house and lived there for 9 years. It made alot of sense then. Now, its worth about $145,000. I owe about $100,000 and there is another lien on it for $15,000. So far I have been keeping it because its a nice property that hopefully will be worth more someday. Problem is we are getting a new road at the property. Our village bills the road to us, the property owners. Just got my estimate today and it will be over $11,000. And we pay $3500 a year in property tax but thats another issue. Even if I could pay the $11,000 over 5 years, it would make this property worthless cash flow wise. What to do?
Right it wont affect the property value. I am going to talk to an agent friend to see what he thinks I could sell at. What the hell is the village thinking, doing this road in this economy for this price.
They probably will only assess you the $11k, and make you pay it over time, but it will raise your expenses no matter what. Maybe you could refi that + what you owe into a lower interest rate/payment?
But my first impression? New road? Maybe more traffic? Maybe a billboard/sign on the side of the duplex for extra cash flow? Or something else, office in lower level, something commercial? Just a few thoughts...
Even if you sell, you will eat the 11k road because you will need to disclose something like that. I dispise condos and associations for this very reason and will never purchase a home with legal convents.
Why do you think a new road will not help property value? Thats only the case only if the current road is in good shape.
luxury mortgage will allow entity vesting.. I have seen a couple other n the last day.. found it.. www.wealthafg.com
You might google a bit.
One who acts as an intermediary between borrowers and lenders, but who is not personally involved in underwriting,funding,or servicing the loans.
Hi finniganps,
thnaks for the info,, but here is more no its not worth more than what is owed it worth little less,,,I have no idea if the loan receourse or non-recourse how do I go about finding that? yes u are correct am current on my Mtg payments but its about double this month am not sure if it worth keep sinking money in it for what is owed..its not my primary residence,,i cannot rent it it a commerical used to be a church and it dose not have a certificate of to rent plus it needs wrok to bring up to serve as a church at least... what do u think i can do now ,,or tell the bank where i can pay off the loan for less what is owed if that is doable? thanks
Look at your loan documents. They WILL indicate whether the loan is recourse or non-recourse (it is required to disclose this information). When you tried to sell the property were you using a RE agent or doing it on your own?
I will look for it in the loan doc,, I am a real estate broker so,I was using one. any idea how to approach them or what to use as a crucial points that needed tyo be mentioned.? thanks
back to the original question would they or have they in the past taken a percentage of the original loan to pay it off totally and get it off the books?
Do you have a partner that that could buy at short price and JV on the flip?
you are correct leaseoptionKing,,so I stopped making payments starting with this month paymnet,,,, the property is not worth the loan unless the bank take a discount payoffs... it would be stupid on my part to keep paying...I ask again would they listen to me as the loan borrower in regard to give them a payoff at a disount or it would have to be a someone other than me.? thanks
NC is a recourse state. If the lender agrees to accept a discounted payoff to release the lien, then the amount of cancelled debt will be taxable income to you at your ordinary income tax bracket rate.
Just something to consider.
Keep in mind that you need to check your state laws too....you may still be subject to state tax even if it is forgiven for federal purposes.