Not a cool investor, just need life altering advice

[Kyle Hewett]

Hello everyone. I have to apologize in advance because this type of post seems awkward, out of place, and borderline inappropriate but I’m at my wits end here and desperately need advice from some pros. I’ll save the giant sob story of my financial downfall for the last four years, and I’ll jump right into my issue.

My credit is absolutely horrible, as well as my mortgage payment history for the last two years. But my house is worth around 115k and I only owe 35K on it. I’ve been on the phone for the last couple weeks and whether it’s a home equity loan, or a second mortgage, even if I meet one criteria the other criteria breaks the deal. So from what I can tell at this point, my only option seems to be a hard money loan. But even then that seems like it’s going to be a tricky mission to accomplish.

So what it boils down to is what are my options? Or is my situation so bad at the moment that I just don’t have any options?

Any advice would be insanely appreciated. Even if that advice is, “sorry buddy you’re screwed at the moment.”, At least that will give me the knowledge to quit chasing rabbits I just can’t catch right now.

Thanks so much and advance.

[Frank Wong]

Hi Kyle,

What it sounds like you have been late on your mortgage or currently late? Maybe you are in default?  Your mortgage amount is currently $35k and you are late.  It sounds like you are in a tough situation but the good thing is you have equity.

Refinance into a hard money loan means you will have a higher interest payment which will increase your payment now. This will only cause more issues for you down the road. The HML will eat up all your equity. You will also have to pay money in fees.

You could sell the house.  You have a lot of equity left.  Pay off your existing loan and pocket the cash and reset yourself.  Now you are not tied down to a property and have to worry about it.  You get a fresh start with cash in your pocket.   This fixes all your problems.

Good luck.