2 Killeen 4-Plexes Underwater $100,000 w/ Balloon due

[Brian Adams]

Hello all -

I have a seller with a problem looking for a solution.

She owns two fouplexes in Killeen, TX (Fort Hood, TX) purchased in 2007 with two mortgages on each and has a balloon payment due in 2016 on the second mortgages. She owes approximately $429,500 on both, and I (an agent in the area) estimate the current market value of both at $320,000 ($185,000 and $135,000).

Gross rents are $4100 ($2500 and $1600).

She can't refinance because the fourplexes wouldn't appraise.

She can't sell because it would be $100,000+ out of pocket.

She can't continue renting, sub-2 or wrap because of the balloon payment.

Trying to avoid short selling and anything else that would damage credit.

I have no more ideas, which is why I'm here! Thanks everyone!