Loans, Debt & Credit - View Single Post - 2 properties and stuck without an option? Do I qualify?

QuayzyCrazy · 07-02-2009, 10:49 AM

Here is my case. I know this message is quite long but I want to get everything out so someone can provide some good information.

I have under my name 2 apartments in the same condominium. Both loans are under my name only because I was the one with the decent job. I consider myself a careful and responsible homeowner and I just hate to be caught in the middle of this entire crisis and to accept that I’m about to lose everything I have in life is killing me. My credit score is still decent after all the circumstances, 720, but now after 2 paycuts (and possibly out of work in about a month) and a few other personal problems, I know ’m at risk of imminent default. I don’t know what to do anymore.

A couple of years ago, due to some family circumstances my husband and I decided to get a bigger place. We weren’t going for a much bigger place. We just needed an extra room. Our intent was to Sale Property A and buy Property B. We closed on Property B 2 years ago and our apartment A has been in the market since then. We have lowered the price many times and now the situation is to sell it for whatever we can get, but our realtor says that there are no calls at all. We were 1000% positive that 2 years ago we had a buyer for our Aparment A so we went thru buying Apartment B. Buyer for Property A wasn’t approved. Real State Boom Market exploded right in the middle of our transactions. I closed on Apartment B but didn’t get to sell Apartment A, and since it didn’t sell immediately, I ended up with 2 mortgages. I managed to rent Apartment A after 8 months of not being occupied. That sucked up all the little that we had as savings. I’m renting it but expenses are definitively not being covered.

Porperty A is 1200 sq ft: Loan is current and I have never been late
Bought for: $135K 6 years ago. Paid Cash upfront $30000, over 20% for down payment. It was originally one of those weird loans (pay interest only) but 3 years agoI was able to change for a fixed 6.570%, 30 years.
Market Value of property has gone down to as little as $90000
Balance of Loan with Wachovia $91000
Line of Credit with Bank of America: $21000. Taken to do fixes and upgrades for property B and since husband lost his business, as a back up for living expenses. ( Bank of America has been recently suspended due to lower price of property. So no back up for us and now I can only pay towards the balance)
Line of Credit Monthly Payment $321
Loan Monthly Payment + Escrow+ Taxes: $800
HOA fees $1000
No Citizen insurance
Actual use: Rented $1500
Cash flow -$600 (after paying Loan +Line of Credit)

Property B is 1300 sq ft: Loan is Current and I have never been late
Bought for $310000 2 years ago - it seemed to be a fair price as the market value analysis said that it was $350000. Paid Cash and points upfront $150000 Loan with Countrywide. The intent was that with the sell of property A to finish paying property B. Rate 6.125% fixed 30 years. We wanted to make sure that I could afford the monthly payment (so we put in this property everything we had in life)
Market Value of the property has gone done to $110000 (plenty of similar foreclosed units in our building)
Balance of Loan, now with Bank of America:$152000
Loan Monthly Payment + Escrow + Taxes: $1580
HOA fees: $1300
Citizen Insurance $150
Actual use: I live there

CC debt: 20500, Minimum monthly payments : $1680
Utilities + Car expenses+ Gas: $1040 + $200
Food + medicines Budget: $800

Salary after 2 paycuts in the last 3 months $ 48150 annual
Actual money I bring home: $3062 monthly (after cutting husband from my company’s family plan insurance)

Husbands business is practically non-existing anymore. After being laid off he became a Commercial Realtor, just right before the market went down. Worked for a few years and after the Real Estate collapsed, everything else went down as well. He is doing little odd jobs to make some money. Has a child support obligation of $1100 so all what he makes is to be sent to his kids as his #1 priority. He ends up not contributing much or nothing. He doesn’t make $1000 dollars a month.

My credit rating is still good. My loan is Fannie Mae backed; I have aggressively been trying to get information from my lender – Bank of America (since they bought Countrywide) about how to apply for a Home Affordable Modification. I checked the Obama plan and I know that if I'm current but at imminent default I still qualify. I believe I qualify for MHA programs. I have listened to over 150 recordings of all the wonderful things supposedly this bank is doing for the people with the bailout money, our money. But so far I cannot vouch for those words, and I have not met the first person who has. When finally I got thru a real person, after weeks of listening to recordings and plain waiting, I was told that I am qualified for a special Refinance but that they are not currently working with the Loan Modification program. I don’t have PMI, but according to them I still don’t qualify for Phase I and Phase II was not available. Instead I was offered an expensive Re-finance option. I insisted that this could not be accurate because I had been doing my homework and I knew that I should qualify under the MHA Loan Modification program or refinance program, and that Bank of America was backing up this program, as per what their website claims. Very politely the Loan Officer said that this was all that they could do. Offered to put me thru a supervisor or a Home Retention officer, but instead he put me thru the same recording that I’ve been hearing for the last couple of months.

I believe I qualify for the MHA plan. I also checked on NACA and it says that if I have 2 properties, I need to almost forget about 1 property and to contact them after we had disposed one. They can only help with the one roof over my head. I just don’t know how to do this. I called this week and stopped the automatic debit payments from my checking account to pay for both mortgages. The impression I have is that if I stop paying for Loan and Line of credit of property A, my credit score is going just South and I will not be able to Refinance Propery B. So I’m not sure what is the best approach and what my optionsare.

I just don't have the money anymore. I'm in the construction business so after succesfully avoing several rounds of laid offs in my company, I fear that mine is coming. I don't want to get into the trap of getting money out credit cards to make the whole bigger.
Shall I stop making payments for Property A so as to get the bank to allow me doing a Short Sale? What happens with my credit there?
Shall I stop making payments for Property B so I can get the back to start some type of Readjustment process?
Shall I go for Refinance or for Loan Modification?
Everytime I call Bank of America, whoever I speak to gives me different answers and I just need a clear and sound answer and a path. I'm totally overwhelmed over this. My husband is not helping much. We are on our way to get separated/divorced.I know I’m not the only one on this road, but that doesn’t make this whole ordeal easier. My American Dream is long way gone. I’m so desperate and frustrated… Please provide some good advice if you have some.
Thanks.

07-02-2009, 10:49 AM	#1 (permalink)
QuayzyCrazy Senior Member Join Date: Jul 2009 Location: Miami Posts: 156 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	2 properties and stuck without an option? Do I qualify? Here is my case. I know this message is quite long but I want to get everything out so someone can provide some good information. I have under my name 2 apartments in the same condominium. Both loans are under my name only because I was the one with the decent job. I consider myself a careful and responsible homeowner and I just hate to be caught in the middle of this entire crisis and to accept that I’m about to lose everything I have in life is killing me. My credit score is still decent after all the circumstances, 720, but now after 2 paycuts (and possibly out of work in about a month) and a few other personal problems, I know ’m at risk of imminent default. I don’t know what to do anymore. A couple of years ago, due to some family circumstances my husband and I decided to get a bigger place. We weren’t going for a much bigger place. We just needed an extra room. Our intent was to Sale Property A and buy Property B. We closed on Property B 2 years ago and our apartment A has been in the market since then. We have lowered the price many times and now the situation is to sell it for whatever we can get, but our realtor says that there are no calls at all. We were 1000% positive that 2 years ago we had a buyer for our Aparment A so we went thru buying Apartment B. Buyer for Property A wasn’t approved. Real State Boom Market exploded right in the middle of our transactions. I closed on Apartment B but didn’t get to sell Apartment A, and since it didn’t sell immediately, I ended up with 2 mortgages. I managed to rent Apartment A after 8 months of not being occupied. That sucked up all the little that we had as savings. I’m renting it but expenses are definitively not being covered. Porperty A is 1200 sq ft: Loan is current and I have never been late Bought for: $135K 6 years ago. Paid Cash upfront $30000, over 20% for down payment. It was originally one of those weird loans (pay interest only) but 3 years agoI was able to change for a fixed 6.570%, 30 years. Market Value of property has gone down to as little as $90000 Balance of Loan with Wachovia $91000 Line of Credit with Bank of America: $21000. Taken to do fixes and upgrades for property B and since husband lost his business, as a back up for living expenses. ( Bank of America has been recently suspended due to lower price of property. So no back up for us and now I can only pay towards the balance) Line of Credit Monthly Payment $321 Loan Monthly Payment + Escrow+ Taxes: $800 HOA fees $1000 No Citizen insurance Actual use: Rented $1500 Cash flow -$600 (after paying Loan +Line of Credit) Property B is 1300 sq ft: Loan is Current and I have never been late Bought for $310000 2 years ago - it seemed to be a fair price as the market value analysis said that it was $350000. Paid Cash and points upfront $150000 Loan with Countrywide. The intent was that with the sell of property A to finish paying property B. Rate 6.125% fixed 30 years. We wanted to make sure that I could afford the monthly payment (so we put in this property everything we had in life) Market Value of the property has gone done to $110000 (plenty of similar foreclosed units in our building) Balance of Loan, now with Bank of America:$152000 Loan Monthly Payment + Escrow + Taxes: $1580 HOA fees: $1300 Citizen Insurance $150 Actual use: I live there CC debt: 20500, Minimum monthly payments : $1680 Utilities + Car expenses+ Gas: $1040 + $200 Food + medicines Budget: $800 Salary after 2 paycuts in the last 3 months $ 48150 annual Actual money I bring home: $3062 monthly (after cutting husband from my company’s family plan insurance) Husbands business is practically non-existing anymore. After being laid off he became a Commercial Realtor, just right before the market went down. Worked for a few years and after the Real Estate collapsed, everything else went down as well. He is doing little odd jobs to make some money. Has a child support obligation of $1100 so all what he makes is to be sent to his kids as his #1 priority. He ends up not contributing much or nothing. He doesn’t make $1000 dollars a month. My credit rating is still good. My loan is Fannie Mae backed; I have aggressively been trying to get information from my lender – Bank of America (since they bought Countrywide) about how to apply for a Home Affordable Modification. I checked the Obama plan and I know that if I'm current but at imminent default I still qualify. I believe I qualify for MHA programs. I have listened to over 150 recordings of all the wonderful things supposedly this bank is doing for the people with the bailout money, our money. But so far I cannot vouch for those words, and I have not met the first person who has. When finally I got thru a real person, after weeks of listening to recordings and plain waiting, I was told that I am qualified for a special Refinance but that they are not currently working with the Loan Modification program. I don’t have PMI, but according to them I still don’t qualify for Phase I and Phase II was not available. Instead I was offered an expensive Re-finance option. I insisted that this could not be accurate because I had been doing my homework and I knew that I should qualify under the MHA Loan Modification program or refinance program, and that Bank of America was backing up this program, as per what their website claims. Very politely the Loan Officer said that this was all that they could do. Offered to put me thru a supervisor or a Home Retention officer, but instead he put me thru the same recording that I’ve been hearing for the last couple of months. I believe I qualify for the MHA plan. I also checked on NACA and it says that if I have 2 properties, I need to almost forget about 1 property and to contact them after we had disposed one. They can only help with the one roof over my head. I just don’t know how to do this. I called this week and stopped the automatic debit payments from my checking account to pay for both mortgages. The impression I have is that if I stop paying for Loan and Line of credit of property A, my credit score is going just South and I will not be able to Refinance Propery B. So I’m not sure what is the best approach and what my optionsare. I just don't have the money anymore. I'm in the construction business so after succesfully avoing several rounds of laid offs in my company, I fear that mine is coming. I don't want to get into the trap of getting money out credit cards to make the whole bigger. Shall I stop making payments for Property A so as to get the bank to allow me doing a Short Sale? What happens with my credit there? Shall I stop making payments for Property B so I can get the back to start some type of Readjustment process? Shall I go for Refinance or for Loan Modification? Everytime I call Bank of America, whoever I speak to gives me different answers and I just need a clear and sound answer and a path. I'm totally overwhelmed over this. My husband is not helping much. We are on our way to get separated/divorced.I know I’m not the only one on this road, but that doesn’t make this whole ordeal easier. My American Dream is long way gone. I’m so desperate and frustrated… Please provide some good advice if you have some. Thanks.