I am desperately seeking advice...I own two properties, a rental property and my primary residence. I only have one mortgage, which is on my primary residence. Unfortunately, both of my properties are facing foreclosure, due to personal circumstances that were out of my control. I have endlessly searched and searched for months trying to find a solution, just to end up with nothing. With both properties I have about $70,000 in equity, and I would hate to loose the equity due to foreclosure. An easy quick fix would be to sell my rental (which values at approximately $30,000), and use the proceeds to reinstate my mortgage on my primary residence. Although, I have had it for sale for awhile now, and there are no offers yet, and now I am running out of time. Initially I tried to take an equity loan out on my rental (Because that was always an easy way for me to get quick cash that basically pays for itself). But the problem is that I cant find anyone who will do equity lines on second or investment properties anymore. I looked at possibly a "first" mortgage on my rental, however once again its not owner-occupied, and I could not find any bank/mortgage company that would do a loan for less than $50,000 (I am only seeking $15,000-$20,000). I even looked into trying to refinance my primary residence, and no luck due to my current mortgage being behind on payments. I am at a loss...I am just trying to save my primary residence, and am having no luck trying to find a solution. What makes it even worse is that I have been in real estate investing for about 20 years now....just on a small scale, on the side as a sole proprietor, with a rental and have flipped a home, which made a substantial profit. And actually just before all of this came crashing down my sibling and I decided to take real estate investing to a new level, and decided to become registered as a LLC real estate investing company (obviously now at a stand still), which I have even considered the company trying to purchase one of the properties. Its hard to believe just one year ago, I was sitting financially well, and now, I guess you can say the enemy (devil) has attacked me in every way, shape, and form to a point that it just seems so surreal. It just goes to say, appreciate what you have, because it can all be gone in a heartbeat. If anyone can give me any type of direction or advice on a possible solution to this nightmare I am in, I would greatly appreciate it. Thank You For Your Help.
Retain a real estate attorney to help with the foreclosure defense. I'm not in the Lima area otherwise I'd do it. There's loss mitigation options available. Assume the provided facts are accurate, the fact that you have equity tells me that there's ways to fix this. You just need to restructure a few things.
Best of luck to you.
@Timothy Murphy III
Thank you for the advise. It is good to know that there possibly might be loss mitigation options available. I definitely will look into retaining a real estate attorney in my area immediately. Thank you again.
It sounds like an incredibly difficult situation. Keep moving forward.
I'm not real experience in this area, but can you cut the price on the rental and sell it to another investor or wholesaler? It's hard to give up equity. But if you could quickly sell the rental for $20,000, that might be enough to save your primary residence and move forward.
Sometimes local banks will do mortgages for less than $50,000, but with you being behind on your mortgage on your primary residence, it will be hard to find lending anywhere.
I hope you find a way to move forward.
@Krista J. , have you tried any "Hard Money" Lenders? Not ideal, but can be very useful where quick fixes are necessary, and where the shortage of cash is but a SHORT-TERM dilemma. All the best...
Welcome to the Bigger Pockets community. It is a great place to learn about real estate.
I have cut the price on the rental and am willing to take around $20,000. I am willing to take a loss and sell the rental for the exact amount I need to clear up the debts and move forward. I just need a buyer.
Yes I am willing to utilize a hard money lender for a short term temporary fix. However, I have been unsuccessful in finding a hard money lender that can help me.
Have you resolved the matter regarding you properties. I hope you didn't lose them. My company can help if you only have one property in your name.
Not sure if I contacted the Ohio Foreclosure Help. If not, please advise on your property status.
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