PLEASE HELP...being foreclosed on because property is upside down

[Elaine Goepfert]

Jan 2023 I purchased a property in Cape Coral, FL. I purchased for $395,000 and rehabbed for $70,000. I took out a hard money loan with Kiavi for one year. I put up for sale with no bites then transitioned to a STR strategy then Kiavi told me they don't refinance unless it's a LTR so I found a renter and went to refinance. Right at a year I start the process of a refi and quickly find out that the renter wasn't paying high enough rent to cover Kiavi's requirements so I had to relist the property. I lost the renters due to them not wanting to cooperate for showings. Despite all of this I was still able to find another lender to refinance until the appraisal came in at $445,000 and everything fell apart. When I purchased the property one year earlier Kiavi gave it an ARV of $610,000! I did all the repairs per spec and under budget and was even able to add four palm trees to the front, a pool heater and fence in the backyard which should have made the value go up! However, the area has plummeted in value and I'm now upside down on this house. I've had it listed for months with one showing and one offer of $380,000.

I have never missed a payment but Kiavi will not negotiate their terms and insist on foreclosure and they just informed me they are moving forward with the foreclosure.  I put in $50,000 of my own money not to mention months away from my three kids while working on the home.  I'm proud of the house I created, it's beautiful & I even have a 5.0 rating on Airbnb.  I honestly feel like I've done everything right and am completely stuck.  I'm devastated and if anyone has any words of wisdom here I would just SO APRRECIATE any help/advice I can get.  I just don't know what else I can possibly do.