Our situation is this:
We have 2 investment properties on the beach in FL.
The first one:
The info below is from a refinance we did in 2006 to get a fixed interest rate.
We owe WAMU (Chase?) $312K at 6.625 on a first and 23K to WAMU (Chase?) on a second at 9.24%. The most recent payment shows $1726.78/int and $322.22/principal. The second is at $229/per month.
In the last 90 days there has been sale of a condo like ours for $190K.
This condo rents, but we have to add thousands of our money every year to float it. We expect rental income to begin decreasing not increasing.
It will be years, if the price ever returns to the 330's. We would love to short sale this one but my husband cannot take the hit of the mortgage company calling his employer. We are current on payments.
The 2nd investment property:
If it sold it right now, we might be able to break even or get a little of our down payment back. We owe $245,718 at 6.625% to BB&T. The most recent shows $1357/int and $228/principal. We are current on payments.
This condo rents very well, doesn't cost me too much out of pocket and we would like to keep it but we know if we don't sell now we will be looking at a negative on it in a few months.
We expect rental income to begin decreasing not increasing.
1. We cannot have mortgage companies calling my husband's employer. I assume they do this with a short sale or a foreclosure.
2. Should we get out of #2 while we can? I probably know the answer to this one.
3. If we felt like the rents would stay up, we could probably continue to carry them both by putting every dime of our income into them. We don't really want to keep #1. The vacation rental income has decreased for eveyone in my owner's networking group from 2007 to 2008.
4. Does anyone see a way with #1 that we could do a loan modification that would make a drastic difference so we could ride this out for a few years instead of taking a chance on losing our jobs an credit rating?
5. Any modifications on #2 to help overall situation?