Stop paying rental and property at the same time?

[QuayzyCrazy]

I need to send my payment tomorrow 6th for my primary residence and the payment for my rental on the 16th. I'm hesitant but I think I should start by not sending my payments for either. I need the banks to be willing to talk to me. I wanted to do this whole thing of claiming the financial hardship with the rental first only and then after been able of sorting that property out, continue doing the same with my primary residence. All of a sudden today I thought, "I guess if I'm going into deep troubled waters, I might as well do this whole thing at once for both apartments. Besides, my credit is going to be useless after that."
I'm not sure what are the advantages or disadvantages for this position as I will have to deal with Wachovia and Bank of America and with Countrywide/BofAmerica on 2 different properties . I have never been late in any payment in anything in my life. This is not comfortable. Always current, but I read all over this place that simply by being current they may not take me "seriously or as a desperate homeowner ready to kill".

Again, the problem I see is that on the rental property the loan is with Wachovia with also a Line of Credit with Bank of America. On my primary residence, the loan is with Countrywide/BofAmerica. I'm in Florida. In my neighborhood everything is upside down and there are plenty of units like mine going thru the foreclosure process, which obviously kills my chances. On both properties, I already lost all the equity that I had, based on today's market figures. My CC debt is too high and my income is lower and the value of my properties is also lower. So, what are my options? Or the question should be, do I have an option?

I'm very nervous by doing this but what else can I do? I read in some forums that I need to be current to be considered for refinance. Then I read that if I'm current they will not talk to me. If I just call Wachovia and tell them that I have problems with my rental, I don't know if I will have the same or even worse problems when looking for refinance or loan modifications for my residence. I cannot qualify for NACA because I have the 2 properties. Even if I got rid of the rental with a short sell, if I get to convince Wachovia, I'm still underwater with the other property because my income has decreased so much.

I wish someone could help with some good advice..... Is it too crazy to do this with both properties at the same time? Imagine dealing with 2 foreclosures. It scares me like hell. I don't need that. I just don't have the money to pay for these 2 properties anymore, and I may lose my job in about a month. Despite all this, I plan to continue paying HOA fees on both because I think I prefer to not dealing with another pool of lawyers. I think perhaps if I get to call the Bank of America and ask to settle the line of credit for half of the amount that we owe, the may think it is reasonable?

If one has 2 properties, how can I know where to start or which one shall I present to its bank with the financial hardship flag? The larger is my residence and I honestly want to keep it. If only I could do a modification and extend the loan for 40 years, I might get everything under control, at least on my residence property. These apartments would not sale easily because the HOA fees are super high. This is an OK neightborhood and our units are small. The small unit is rented and has been in the market for 3 years since I bought the larger one.

I'm at the point of no return. Please, please, guys, I cannot sleep anymore.... I really need someone to share some positive light, thoughts and advice. I will really appreciate it.

[CW California]

I can't imagine doing both at the same time. I'm going nuts trying to do one. If you short sale the rental can you keep the payments up on the residence? Maybe then you could go thru NACA on your residence. Is short selling the rental going to force you into bankruptcy? I think, if I were you, I would feel I could make a better decision if I talked to a Real Estate Attorney................

[QuayzyCrazy]

Thanks for your reply CW California. I'm thinking of getting an attorney but I need to understand the whole process before, asI do not really have the money but if it's as must then we will see...

I called today and confirmed that the Wachovia Loan is not Fannie or Freddie backed up. So basically it seems there are no viable options for my little apartment and the lender is not obliged to help me. I was just offered to have a Skip Payment for 3 months program and I will need to call to confirm if I qualify.

I also confirmed that the other Loan (Countrywide/BofAm) is backed up by Fannie Mae. Bank of America said that I needed to be current to qualify for Refinance under MHA. So the loan officer pulled up some numbers again for me. Here is what he came with:
30% fixed 5.5%, APR 5.64%, monthly payment of $1217, which saves me only $60 dollars a month, and adding $3600 in closing costs???? It would take me 76 months to recoup this change. Assuming that $60 will not do a big difference on my pocket I asked him to transfer me to the MHA Loan Mofication, and instead I was sent to the end of the loop with the recording message again.

I also talked to someone from CCCS. I went thru a long questionaire and I gave them all my details. Per his suggestions, without thinking on the rental property, we are short about $1500. They did say that to have that second property will hurt me as the loan is not protected by government but they said that CCCSC no matter what they were going to concentrate on saving my primary and that they were to submit my information/request to Bank of America.
So basically the rented property will not be protected for much anymore if I stop payments. It's such a shame since my credit score is 731 and I never had a problem in my life... This property has a negative cash flow of only $300 dollars a month... Oh well, but I need to save my home, so that's my goal now.

Based on all this, the wonderful Refinance plan for my primary that BofA is offering doesn't seem to work for me. I cannot believe the numbers given to me are part of the MHA program, as I believe there are not supposed to be closing costs but that's what the guy told me....

Does that mean that my only chance and therefore opportunity to save my home is to get BofAmerica approve me for Loan Modification in my residence? Also, who knows how to deal with the taxes? If my taxes are based on a property worth $350K and my property is now about $125K, how can we make this number get adjusted? Can make this number get adjusted? Does anyone know? S

ome good advice would be appreciated.

Thank you all in advance for any good input...

[QuayzyCrazy]

Guys, I'm really desperate. I read so many positive stories but because of my circumstances I don't know if I qualify and if my intention to save my home is feasible. I don't have a buyer for my rental and it's bank says that the only solution is to find a buyer. I need some good input... please...

[FLgata]

Hello Quayzy,

I feel so awful because I can hear the despair in your posts and I don't know how to direct you. if I were in your position, I would probably just let the rental property go into foreclosure and maintain my primary residence's payments. Once the foreclosure was finalized, I would then contact the NACA and apply for a modification on my personal home through them.

I have a friend who lives in Arizona and his circumstances are similiar to your's. He contacted the NACA and they told him they could not assist him until he sold or lost his rental property in Cape Coral FL. He wishes he could sell it, but as you know, the market down here is terrible. The only homes that are moving are bank owned with buyers paying cash. Most buyers and realtors won't even deal with short sales anymore because of the headaches. Unfortunately, foreclosure may be your best (and quickest) option. Plus, it will definitely proove hardship when you apply for the modification on your home. That's just my opinion though.

Whatever choice you make, I wish you the best of luck.