Does it make sense to keep these 2 properties ?

[John Kelp]

Long story short , didn’t do my due diligence . Purchased not one but two properties from a foreclosure with no title search . Comes to find out each property has a mortgage. Combined with the price I paid through the auction, they are much higher than market value

property 1: paid 100k, owe 170k. Worth 200k. Rent is 1800 and HOA is 400

property 2: paid 280, owe 370, worth 500. Rent is 3500, HOA is 1500.

I have a lawyer negotiating with the lenders currently. 

what would you do if you were in this situation? Buy out the properties mortgages and sell it for a loss and try to minimize the total loss? Or rent out, refinance , and recoup money else where knowing what I know now .

location: southern Florida. 

[Jason Taken]

Quote from @John Kelp:

Long story short , didn’t do my due diligence . Purchased not one but two properties from a foreclosure with no title search . Comes to find out each property has a mortgage. Combined with the price I paid through the auction, they are much higher than market value

property 1: paid 100k, owe 170k. Worth 200k. Rent is 1800 and HOA is 400

property 2: paid 280, owe 370, worth 500. Rent is 3500, HOA is 1500.

I have a lawyer negotiating with the lenders currently. 

what would you do if you were in this situation? Buy out the properties mortgages and sell it for a loss and try to minimize the total loss? Or rent out, refinance , and recoup money else where knowing what I know now .

location: southern Florida. 

Are these long-term investments? Are you keeping these for the long haul? Did you buy these cash or with other debt? Property 2 has a chance to get refinanced out and cover the overage on property 1 if the numbers work.

Are there any other clouds on title? Unpaid liens/taxes/etc?

[John Kelp]

Quote from @Jason Taken:

Quote from @John Kelp:

Long story short , didn’t do my due diligence . Purchased not one but two properties from a foreclosure with no title search . Comes to find out each property has a mortgage. Combined with the price I paid through the auction, they are much higher than market value

property 1: paid 100k, owe 170k. Worth 200k. Rent is 1800 and HOA is 400

property 2: paid 280, owe 370, worth 500. Rent is 3500, HOA is 1500.

I have a lawyer negotiating with the lenders currently. 

what would you do if you were in this situation? Buy out the properties mortgages and sell it for a loss and try to minimize the total loss? Or rent out, refinance , and recoup money else where knowing what I know now .

location: southern Florida. 

Are these long-term investments? Are you keeping these for the long haul? Did you buy these cash or with other debt? Property 2 has a chance to get refinanced out and cover the overage on property 1 if the numbers work.

Are there any other clouds on title? Unpaid liens/taxes/etc?

Thanks for the reply. Purchased both with cash . There’s no other liens / clouds on title. I included the total amount of debt owed in the original post. 

I originally purchased them for a quick flip until I found out about the mortgages attached . Just trying to scope out ideas / methods to minimize loss here . 

[John Kelp]

Any other suggestions ?