All Forum Posts by: Phil James

York, PA

I have had property management manage the property for me since I bought it. At one point I had it fully rented netting 800 a month. It is a four unit. Unit 1 was bringing in 675, unit two 600, unit three 550, unit four 150. My MIPI plus all my utilities cost me about 1200 a month.

I am currently on my third management company and they can not seem to rent the property. I advised them to lower the rent to get me to break even or have me loose 100-300 a month. They haven't been able to placer anyone for about 4 months. My mortgage balance is 90k.

I do not own any other properties. I rent and lease a car. My only assets is my on hand cash which is about 25k. I make about 45k a year from my jobs. My finanical goals have been at a stale mate for the past three years. This is why I am considering letting it go.

What do you mean by give it back? The bank is wells fargo and I called them and offered to do a deed in lieu and they said no.

On paper the property should cash flow me 800.00 a month. My tenants always end up not paying rent, then I evict them and make repairs. This I why I have been loosing so much money every year. Right now the property is vacant so I am not collecting rent.

The area that the property is located in has done very poorly in the last couple of years. In my town the markets are broken down by school district. The school district my property is located in has basically crashed. The average sale price of a property in the school district s 29k according to recent statistics. I thought I bought at one of the lowest points but I obviously thought wrong...

I purchased an investment property 3 years ago. At the time of purchase it appraised for 96k. Over the last three years I have been losing about 10k a year on the property. I recently had it reappraised and the appraisal came back at 48k. I currently owe 90k on the property. I am thinking about just letting it go to foreclosure. I spoke to an attorney and they said due to the difference in what it appraised for and what I owe, there is a good chance the bank could file a deficiency judgment against me after they sell it. I figure since I have been losing 10k a year on it… if the bank comes after me for 30k-40k I won’t be too far off from what I would have lost on it eventually. I have money in the bank to pay the mortgage, but I just feel like I am throwing it out the window and delaying the inevitable.

Every realtor I have spoken with said they never heard of a bank filing a deficiency judgment against anyone. Any feedback or advice on how some of you would handle this type of situation is appreciated. At this point I think I should just let it go.

thank you!