Underwater help needed

4 Replies

I have been trying to do real estate deals since 2008. I had large deal with HUD to rehab an old school building. Due to health issue I had to drop it. Then the 2010 bust forced a short sale of a investment house. Now my home has underwater equity loan. How can I refinance with a underwater equity loan.

William Behring

    Maybe check into a HARP loan.  Otherwise you can continue to just keep making your normal payments as thought your underwater value wise, if you can keep making the payments then dont plan on moving for some time. 

    Curt Davis, Real Estate Agent in TN (#00321765)

    Thank You for the reply.  I have looked into HARP and they will only help with the primary loan not the Equity portion.  I am underwater on the Equity loan not the primary loan.  I originally took out the Equity loan to finance a investment property.  Due to the last RE bust of 2008 I lost $150000.00 and my good credit.  I have been trying to refinance into one loan at the current interest rate without success.  I have been helping others to become successful RE investors and entrepreneurs and this is part of what is holding me back.  When I am asked why am I helping others and not myself all I can say is that I have dealing with health issues and bad timing.  Sorry for going into my details.  Thank You for responding.

    William Behring

      hi william. sorry to hear of your bad luck here. but, there is always one good word of advice. never give up. yes, your property is underwater right now. if you can afford to keep making payments on both loans, please do so. sure, on the one loan, you are basically " paying on a dead horse". there really is nothing you can do about that. over time, with making sure payments are being made on both loans, you will overcome your bad credit rating simply by making the payments. in that time, should the market on your home increase, you may overcome the negative equity also. only time can help you right now. in the meantime, look for other house deals that you can make. maybe they will not be the level of what you were dealing with in the past, but as long as you are making money, thats the goal. keep moving forward. hurdles in life are put there to teach us a lesson. learn all that you can. 

      Thank You Mark for your kind words. 

       I put the post up to see if I missed anything.  I agree it is going to take time.  Right now the best thing I can do is payoff the credit card debt I incurred to pay for my wife's drugs.  Her drugs alone cost $6500.00 a month.  On the plus side the affordable care act reduced my expenses by $6000.00 per year and I have a $145,000.00 contract for technology services this year.  I am not trying to make a political statement I am just saying it helped.  I certainly had many lessons in my life.  Each time I learn and move on.  Many people that know my story say I should write a book.  Current Plan is to do rehabs to payoff that dead horse then get back into big deals and teach the lessons I learned to those who are struggling.

      Regards Bill Behring

      William Behring

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