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bradesp · 12-01-2008, 01:55 PM

I know most of you are in MUCH worse shape than me, so I don't expect, nor am I looking for any sympathy.. I made my bed, now I have to sleep in it! That said, I would appreciate any practical advice and "out of the box" ideas, no matter how nutty they sound.

Here's my situation:

Income: 250K Year and at risk (company downsizing and I stand a 50/50 chance of getting cut in next 90 days and will have great difficulty finding reasonable employment at my level for 6-12 months.)

Homes Owned: 3 homes, 3 mortgages.

> Home #1 is the "true" home. 625K Value, 280K Loan

> Home #2 is a small weekend cottage purchased 10 years ago. Home Value 675K, 230K Loan

> Home #3 is beach home in North Carolina (1 hour south of Wilmington, 50 minutes north of Myrtle Beach). I built this home three years ago thinking it was a fantastic investment. No such lunck. Today the home is worth $800K, Loan value is $940K. The home value two years ago was $1.1M

Home #3 is my problem. I convinced myself that I could service the annual negative cash flow of $35K (it's a summer rental / vacation home) with the sale of stock from my portfolio. Three years ago my company stock was worth $750K... Today my company stock is worth $75K.. long sad story…

I have no other liquid assets, just the $75K Stock Portfolio and the equity in House #1 and #2. I wont be able to make up the cashflow next year and I don't want to wait to lose my job to find out I don't have time to do something about this.

The Servicing Company is CountryWide. I don't know who holds the paper. Also, when I purchased the beach lot for 500K I did NOT take out a construction loan, instead I used my HELOC's on House #1 and House #2 to finance construction (thinking I was being "smart" to save money on the closing costs associated with a construction loan). This proved to be a VERY dumb decision because when I went to secure a mortgage for my brand new house the mortgage company treated this as a cash out refi!!!

Again, I know I'm not as bad off as others, but for those of you savvy about the current mortgage crisis, can you recommend what you would do in my situation to escalate this with the banks in a way that stands a chance of resulting in a work-out without resorting to a walk-away situation? My concern about walk away is not just about credit rating, I’m also concerned I would not be able to obtain a similar executive position suitable for my background if this we’re to impact my credit report.

Lastly, my current mortgage is a 7 year IO at 6% with a monthly payment of $5,200. I’m in year three of the mortgage. I know it's unrealistic, but if I could get my payments down to $3,000 a month I would happily keep the home and mortgage for the next 20 years knowing I can break even on my cashflow.

Thanks for taking time to consider my situation and offer any ideas.

12-01-2008, 01:55 PM	#1 (permalink)
bradesp Junior Member Join Date: Nov 2008 Posts: 3 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Is my Investor Property Hopeless? I know most of you are in MUCH worse shape than me, so I don't expect, nor am I looking for any sympathy.. I made my bed, now I have to sleep in it! That said, I would appreciate any practical advice and "out of the box" ideas, no matter how nutty they sound. Here's my situation: Income: 250K Year and at risk (company downsizing and I stand a 50/50 chance of getting cut in next 90 days and will have great difficulty finding reasonable employment at my level for 6-12 months.) Homes Owned: 3 homes, 3 mortgages. > Home #1 is the "true" home. 625K Value, 280K Loan > Home #2 is a small weekend cottage purchased 10 years ago. Home Value 675K, 230K Loan > Home #3 is beach home in North Carolina (1 hour south of Wilmington, 50 minutes north of Myrtle Beach). I built this home three years ago thinking it was a fantastic investment. No such lunck. Today the home is worth $800K, Loan value is $940K. The home value two years ago was $1.1M Home #3 is my problem. I convinced myself that I could service the annual negative cash flow of $35K (it's a summer rental / vacation home) with the sale of stock from my portfolio. Three years ago my company stock was worth $750K... Today my company stock is worth $75K.. long sad story… I have no other liquid assets, just the $75K Stock Portfolio and the equity in House #1 and #2. I wont be able to make up the cashflow next year and I don't want to wait to lose my job to find out I don't have time to do something about this. The Servicing Company is CountryWide. I don't know who holds the paper. Also, when I purchased the beach lot for 500K I did NOT take out a construction loan, instead I used my HELOC's on House #1 and House #2 to finance construction (thinking I was being "smart" to save money on the closing costs associated with a construction loan). This proved to be a VERY dumb decision because when I went to secure a mortgage for my brand new house the mortgage company treated this as a cash out refi!!! Again, I know I'm not as bad off as others, but for those of you savvy about the current mortgage crisis, can you recommend what you would do in my situation to escalate this with the banks in a way that stands a chance of resulting in a work-out without resorting to a walk-away situation? My concern about walk away is not just about credit rating, I’m also concerned I would not be able to obtain a similar executive position suitable for my background if this we’re to impact my credit report. Lastly, my current mortgage is a 7 year IO at 6% with a monthly payment of $5,200. I’m in year three of the mortgage. I know it's unrealistic, but if I could get my payments down to $3,000 a month I would happily keep the home and mortgage for the next 20 years knowing I can break even on my cashflow. Thanks for taking time to consider my situation and offer any ideas.