Help, Property worth less than half of LOC
Hello, I am new to the board need some advice. I purchased a dozen rental properties over the past 3 years during the times of easy money.
Once of my purchased was a double that I paid cash for. $29k purchase price. I then went to Bank of America for a LOC so I could use the cash to purchase additional properties. After Bank of America's 'due diligence' (if you can call it that) they advised that they valued my property at over $100k and would extend me a LOC at 80%LTV.
I almost fell on the floor and told the loan agent that I paid no where close to that but she didn't seem to care. Long story short I proceeded to use almost the entire LOC to finance my other real estate holdings.
I now owe $80k on this double via a interest only variable rate LOC when the while the property is probably worth no more than $35k. Does anyone have any ideas how I may exit this position without getting sued by the bank and destroying my credit?
I have been making all payments for a couple years and still can although it stings a little and I thought with the current credit crisis this might be a time to work out a creative solution.
Thanks.