Please help my parents with advice--Underwater on mortgage

Scottsdale, AZ · Member since 2016 · 62 posts · 8 votes

Hey guys, this isn't for me, but for the two people I love most in this world: My mom and dad...

They bought a weekend home they can't afford. They got the financing from the builder of the property and now they fell on hard times and can't afford the 2000/mo payment...

Should they short sale? Walk away? What course of action would cause them the least amount of harm in the short/long term? Thanks so much you guys!!

0 Reply

9 views

Most Popular Reply

Michaela G.

Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes

10y

I think in order to give you answers, it would help, if you gave more details, like

- where is the property?

- What is it worth?

- What are other similar properties around there selling for?

- How much do they owe?

- If it's a weekend home, have they considered Airbnb or other vacation rental opportunities?

1 Reply

See this reply in the discussion

8 Replies

Jump to latestLatest

Sort by

Michaela G.
Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
10y
I think in order to give you answers, it would help, if you gave more details, like
- where is the property?
- What is it worth?
- What are other similar properties around there selling for?
- How much do they owe?
- If it's a weekend home, have they considered Airbnb or other vacation rental opportunities?
1 Reply
Ryan Dossey
Real Estate Broker · Indianapolis, IN · Member since 2014 · 3k+ posts · 2k+ votes
10y
We really need more details to help you out man.
1 Reply
Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
10y
Short of the details, try a short sale.
[email protected]301-893-4635 Podcast Guest on Show #192
District Invest Group546 Reviews
Website View Page
1 Reply
George Torres
OP
Scottsdale, AZ · Member since 2016 · 62 posts · 8 votes
10y
Originally posted by @Michaela G.:
I think in order to give you answers, it would help, if you gave more details, like
- where is the property?
- What is it worth?
- What are other similar properties around there selling for?
- How much do they owe?
- If it's a weekend home, have they considered Airbnb or other vacation rental opportunities?
Thanks @Michael S.:
-Poconos
-110k (Other comps are selling for about this much)
-About 150-160k would be my guess
-I told them about Airbnb. They're old school; they don't "trust the internet" (Yeah... I know)
0 Reply
George Torres
OP
Scottsdale, AZ · Member since 2016 · 62 posts · 8 votes
10y
@Michaela G. @Russell Brazil @Ryan Dossey Please see the above details. Thank you. They're mortgage payment is almost 2k plus all other expenses that come from owning and commuting to a weekend home.
0 Reply
Wayne Brooks
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
10y
Short sale.
0 Reply
Michaela G.
Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
10y
Has the area not appreciated again since the crash? That's a really high payment, considering where the rates have been for years. Did they pay too much in the first place or have they had it for a long time and have rates of +10%?
So, they have the option of refinancing into a lower rate loan, which would require them to pay the difference in cash - which they might not have.
They can let it go to foreclosure
They could sell it 'subject to' to someone for what they owe, if that person wants to take a stab at airbnb or websites like this https://www.flipkey.com/poconos-cabin-rentals/g155... . If there's enough traffic, there might be profit.
Try to do a short-sale with the lender.
1 Reply
George Torres
OP
Scottsdale, AZ · Member since 2016 · 62 posts · 8 votes
10y
Thank you @Michaela G.
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.