All Forum Posts by: Donna J

I have posted before regarding my problem with my investment properties (see: Is it possible WAMU will lower my principal?) . I took the advice of this group and immediately put the property that has the best chance of selling for as much as I owe, on the market. It is not listed as a short sale.

Everything below is regarding another property that has about a 50% LTV.

I am ready to begin the short sale process on this property. I have never missed a payment on anything in my life and I am still current on this property. I have a payment on it due the 1st and need to decide whether to send it.

My 1st mortage on my investment property loan was shifted from WAMU to Chase. I received the letter from Chase last week saying they have the mortgage, now. I had already spoken to WAMU and got a verbal agreement to short sale. Now that Chase has the mortgage, I guess I need to contact them and see if they will give another verbal agreement to short sale.

How do I find a qualified person for the help I need? All the realtors I have contacted say they are "experts on short sales". I seriously doubt they all are. I have gotten the name of a couple of attorneys, but I'm not sure is an attorney is really needed to do this, or at least not the entire process.

The property is in FL, a recourse state, with judicial foreclosure and allows deficiency judgments. Are these facts enough for me to be foolish not to use an attorney? Unless an attorney is experienced with Short Sale negotiation, I think I would be better off with whomever has the most experience, whether they are an attorney or not.

How do I find an experienced person? Do I do most of it myself and just pay them for advice?

Would I be better off to just foreclose? I have read things that say a SS does not do as much damage to the credit rating and then other places say there is not much difference. We would jusdt have to realize that we would not be able to fincance anything for a very long time. Based on my lack of judgment with these properties, that is probably for the best.

I worry that we would not even get a buyer if we did short sale. The foreclosure could be finished sooner, correct?

My hardships are:
1. devaluing of property, short sale now before mortgage company loses more.
2. I will no longer have my job as an employee. My company is changing my status to self-employed.
3. Loss of income from accounting clients due to economy and their businesses closing.
4. Loss of income from farming due to drought last fall and winter. I sold the cattle and have not been able to buy back.
5. Decrease in both days rented and amount of rent, due to the economy. It is a vacation rental.

Thank you,
dmj4

I got a letter and Chase took my mortgage from WAMU on the property I want to SS. Any tips for dealing with Chase on a short sale?

Scott,
If I bought something now, wouldn't it interfere with my short sale? I have not started the process, yet. Should I try and buy something now, before it hits my credit? Are you just buying homes or all types of properties? What are you doing with them while you hold them or do you plan to try and sell for whatever gain you can get right now?

I am losing my butt in FL. I would love to just be back where I was before that. Any advice from any of you on how to make a few bucks right now, would be appreciated. I am wanting to start small. I want to redeem myself and regain my self-respect after my bad decisons in FL.

Caitlyn,
Thanks again for your response.

I knew when I typed that message that collapse would be the outcome of my suggestions. I don't want that, of course. You are also correct regarding putting this in perspective.

Is a modification even worth attempting on a second home? If I negotiated with WAMU to add the second mortgage to the first, spead to 40 years so I can wait out the decrease in values (may take 40 years in Panama City Beach) and lower my interest rate, what would be the lowest interest rate I would have a chance of negotiating? Would I even have a chance at a lower interest rate since it is an second home? We are currently at 6.625% on the first and 9% or so on the second owing 23K on it. Is the current rate still at 6%?

We have contacted WAMU about a short sale so they have it noted in our file. I really don't want to do that, even if it were possible.

I don't know if any of this matters, we have made all payments timely and I have even paid a few months ahead on the second mortgage. while the rent was high. We have a very high credit rating and have never defaulted or been late on a payment in our lives.

Seriously, I want to thank everyone for your imput.

dmj4

Caitlyn,
I agree with the statement you made, "Sorry, but there's no mercy for you in the current environment nor, dare I say it, should there be."

I did make bad decisions and I have been paying for them and will continue to as long as I can, which I hope is forever. I also feel there should be no help for anyone, except maybe people that were truly deceived when signing their mortgage. I don't even agree that people should get help because they sign an ARM, then the rate increases. I made sure I got and refi'd to a fixed rate mortgage long before mine adjusted. With the second one, I insisted on a fixed rate from the beginning.

If we make a bad decision we should all have to pay what we promised to pay and we should have to give a little skin in the process. We should have to do without other things to continue to pay the loans we signed. Bankruptcy, short sales and foreclosures should all be stopped, except in cases of medical bills or "true" disability. We all know people that chose bankruptcy just because they didn't want to pay any longer. Many of them go on to buy again, later and then file bankruptcy a second or third time.

I could probably prove my broker did something he shouldn't have when doing my refi. Was I aware of it at the time? No. Will I do this? No.

I have put the second condo on the market. It probably won't sell, but at least I am trying. In the meantime, I will try to rent as much as possible. I work the rental part of it for a few hours everyday so I can continue to make my payments. I have rented each condo for 275+ days in 2008, so far. My other job will just have to continue to pick up the slack. If it gets to where it can't do that, then I will get a third job. We have held and paid for the first condo for 4 years; hopefully, we will be able to continue to do so.

Anybody want to rent a week in newer a gulf front condo? I keep the rates competitive to keep it rented.

Thanks for your answer to my question.
dmj4

I'd love to move to the Bahamas. I'm sorry, It seems I must have given the wrong impression regarding our current money situation. I do have money put back to live off of. I just know that I have been seeing others here in FL walk that have far more than I do, they evidently came up with a hardship.

Are any of these hardships good enough?

The hardship could be separation. I may be living in one of them after the rentals I now have booked are finished. I don't think it being my primary for a couple of months would carry much weight, though. People probably try that when it is not true.. We would not immediately divorce. Being under all this debt has probably been the main thing keeping us together. Then again, the stress could be what has driven us apart.

My employment is seasonal. I have not lost my job but until March 15th, his income is the only income we will have. That and the rent. I do have some of my income set aside, but we have exhausted our reserve with our downpayments and high hopes.

What do people do when they have just plain run out of money?

2nd property
We started renting it in Feb 2008 as a weekly vacation rental. My gross income for 9 months (thru Oct) including sales tax is $33K. My gross expense including sales tax is $11602 (I added estimated utilities, etc for Oct). Of course Nov & Dec will be lower rental months. There will be no profit.

You are right, though. We need to sell and pray that it does sell. I have been in contact with our realtor, I will tell them to list it.

1st property (It is the one worth 190K)
If we ask Chase or WAMU to do a write-off, with a loan to us will they contact our employers? I assume we would get an offer, then approach them with the sales price and offer to pay a portion of the shortfall. It seems to me that there would be no need for them to contact the employer if we remain current on our mortgage payments until that time. We would approach them with the offer and the hardship at the same time.

It has rented for 28K thru October. The payments for 12 months are close to $30K and the estimated expense would be 16+K. If I got no additional rent, that leaves me about 18K out of pocket (in previous years it has been closer to 15k out of pocket not considering what is saves me on my taxes). If I offer to take a loan for 95K, I could carry it for 5 more years for 95K (if rents don't drop too badly).

I don't really believe the value will rise to $335,000 in 5 years.

You think $50,000 write off is the most they would consider? We would still be hit on our credit and owe a tons of money.

Would you put them both on the market at the same time, or should I sell the one that may break even first?

Thanks! I really do appreciate it.

I really had to rack my brain about the cash out Shari brought up. When we refi'd we included a loan for a portion of the furnishings. The remainder was closing costs.

Last night, I had a dream that my credit score dropped by 130 points just because I called WAMU to ask about a Short Sale.

My husband's employer will not tolerate receiving phone calls from debt collectors, so I assume we can't do a SS because I feel sure they will call everyone.

Our condos are in FL and vacation rental income is dropping, making it more difficult for us to make the payments. We are current on all payments.

What is a reasonable interest rate to ask for, right now?

The first condo:
The info below is from the refinance we did in 2006 to get a fixed interest rate.
We owe WAMU (Chase?) $312K at 6.625 on a first and 23K to WAMU (Chase?) on a second at 9.24%.

What would be the chances of getting them to add te second mortgage to the first, drop the interest and extend for 40 years?
After adding the 2nd to the 1st, if they would drop the interest to 5.6% my P&I would decrease by appr $627 month for 40 years or $455 for 30 years.

2nd investment property:
If it sold it right now, we might be able to break even. We owe $245,718 at 6.625% to BB&T. We are current on payments. We had rather keep this one forever. It rents well, but I feel sure the rental income will drop. Is the advice of this board to sell it, while we can?? If we can.

Taz, anything else on whether it will be Chase or WAMU.

Thanks for your patience.