How to get out of a HM loan where you owe more than what could the property sell for?

[Steve Sidie]

Hello BP Community, 

I have a quick question and would like to get views from other people. 
I have a property that I purchased with HM loan a couple years ago that needed rehab. My strategy was to BRRRR however it has bee a rough ride since I purchased it. I have ran into more issues than expected. I rehabbed 3/8 units throughout this time and even got overcharged. 5 units remained to be rehabbed.

Despite the fact that this property has a good income potential when fully rehabbed today I owe more than it might actually sell for. I have lost money on this and the only way for me to make that loss back up would be to hold it long term (as I initially wanted) but I can't get a loan right now as it is. Hence I am also open to sell it and move on. 

So what would you do in my situation? Any suggestions, idea, advices would be welcome. 

Thanks for reading. 

[Account Closed]

Quote from @Steve Sidie:

Hello BP Community, 

I have a quick question and would like to get views from other people. 
I have a property that I purchased with HM loan a couple years ago that needed rehab. My strategy was to BRRRR however it has bee a rough ride since I purchased it. I have ran into more issues than expected. I rehabbed 3/8 units throughout this time and even got overcharged. 5 units remained to be rehabbed.

Despite the fact that this property has a good income potential when fully rehabbed today I owe more than it might actually sell for. I have lost money on this and the only way for me to make that loss back up would be to hold it long term (as I initially wanted) but I can't get a loan right now as it is. Hence I am also open to sell it and move on. 

So what would you do in my situation? Any suggestions, idea, advices would be welcome. 

Thanks for reading. 

Everything is negotiable. If you care to, you can have a cup of coffee with your lender and tell him your circumstance. Your approach is something like this

" I want to finish this project and make all of my payments on time. However, the market has changed and it looks like the property can't even be sold for the amount owing and the payments are way too high. I'm left with two choices, 1. default and you can have the property as it is or 2. we rework the payments so they make sense with this new market. I'm open to either solution and I'd like your input on how you want us to get out of this situation".

Use the words "we" & "us" . It's his problem too. He just wants to get paid and he sure doesn't want a half finished project. He may provide a solution that works for you.