All Forum Posts by: Harold Newsome

The estimated repair was $50-$75K. It's three floors (basement/garage, downstairs apts, upstairs apt.) built on an embankment. It's tilted back about two inches and requires major excavation, etc. I didn't have the financing to make those repairs.

It's only worth about $45K and I owe $106K. I can't cover the loss on it.

I bought a triplex in 2007 through Countrywide. It was my first investment and went bad fast. They required no inspection or money down and did some creative financing so I could purchase it. 

I soon learned that the foundation was sinking and the property slowly falling backwards. The renters all moved out and I relocated for work. I've owned it for ten years and it's unrented because I'm concerned about renter safety and my liability. 

I've never missed a payment, but the $1,100 is tough to manage, so I have two questions:

1) When do you cut your losses and bail?

2) If I walk away, do I just stop paying the mortgage and allow the lender to foreclose?

I bought a triplex in 2007 financed by now defunct Countrywide. They required no inspection, etc. I rented the property for approximately a year before discovering issues with the foundation. The property is slowly falling down a hill. It's been empty since then and I now live 5 hours away. I owe $106K and the property is probably worth $35K. Repairs were going to be $60-$75K. I'm paying $1200/mo mortgage and have paid $132K over the last 10 years. I need out from under this place!

Should I just stop making payments and let the bank foreclose?