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Join Date: Oct 2008
Posts: 13
Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0 | Late on CountryWide, Foreclosure May be Inevitable..
I've been somewhat embarrassed about this, but I have been in stress over this since 1 year ago when I first started losing money each month... I had started buying 3 family apartment houses in Providence, RI 5 years ago. I'd buy the place, and fix up the units with new kitchens, baths, roofs, heaters, etc. I was putting in hard earned money into them, with 10% down and buying them at pretty good prices. Well, I increased value and bought more properties like this over the next couple of years. Starting a little over a year ago, I noticed tenants began being late on rent or not paying at all. I had tried to work with them, but eventually had to evict them, which cost extra for attorney's fees, and then lost rent, damage to the unit, vacant units, and then realtor fees to get the re rented..etc. In order to keep up on the mortgage payments, I dipped into the equity lines to cover the shortages and any extra expenses related to the property. Well, this wasn't good, because my debt increased.. which makes payments go up ofcourse.. Now, the next problem was that rents around the city decreased by an average of 20%-25%...I;d still try to get the old rents, but would be vacant, until I had to keep dropping rental prices to get them rented. I found out from other landlords that they where dealing with the same problem... Finally, I was paying $4-5k per month out of pocket to keep this whole thing afloat, for about a year this was happening, sometimes it would be $7k, but on average 4-5k per month losses.. I called CountryWide explaining what was happening in Providence, and that's why I'm asking for some sort of loan modification or help..even willing to share future equity to show good faith that I'm not expecting a total hand out, but need some help here to make this work.. They gave me the run around after numerous calls, talking with the retention dept.. they said sorry chief, no dice.. If you want you can do a short sale and we'll work with you.. I said, but I put in alot of money into these houses, time, sweat and tears and I can't just give these things away, why can't you just try to work with me for a year or two until things stabilize here? No, sorry you can try a short sale, or foreclosure will happen... I said ok, thanks for nothing.. I tried listing 2 of the properties, even with the words "Subject to Short Sale", but no biutes at all after 5 months..I paid one more month, and finally tried again, still no offer to help. My wife told me we're running out of equity money to keep this afloat..and I told my wife strop paying the loans, enough is enough.. They've been calling me and calling, and I don't answer because India will give me no help.. I spoke to several lawyers, and most of them offer to pitch bankruptcy to the bank, but I'm afraid to retain these legal services because they'll probably just shift me towards bankruptcy as they don't know how to negotiate with the bank on loan modifications...And, I don't want to go that route.. In any case, here i am now, and I got a call from "Titanium Solutions". They say they're a mediator for the bank and can help negotiate for me free of charge, they're hired by CountryWide and BofA to help keep borrowers in the properties, etc. I'll give it a shot, and pray for the best, but would think an attorney would be needed at some point.. Well, today I just received certified letters from a law office asking me to give a written statement within 30 days and or try to cure the defaulted loan. Otherweise they would accelerate the foreclosure process.. My poor wife is a wreck over this, as our credit has always been over 700, but the lates on all these loans has obviously hurt it now.. Raising our credit card interest rates, etc. I'm worried, but hopeful that the people from "Titanium Solutions" can do something, before it's too late.. I don't know how much time I have left, but really wish that Countrywide would be more flexible. I just saw on CNN that Rhode Island has the highest unemployment rate in the US, 8.8%, the US Avg is 6.1%. They said alot of people are out of work, houses boarded up, business retail locations boarded up, and that it's only going to get worse.. I would hope Countrywide understands that if they take these properties back rather than work with me, A) there's no way anyone's buying right now, or it's for .20 on the dollar, and or B) they will have a hard time keeping tenants or managing these properties as the economy locally is the worst in the nation!! I look at all the slum lords who made no repairs or renovations to their properties and realize I may have been too good a landlord in spending any refi money or equity money on making these apartments nice for people to live in... Maybe being a slum lord is the right way to do this stuff? I just wanted a long term investment for my family in 20-30 yrs, and I get punished for it...Oh well.. Any feedback or help anyone here can offer is much appreciated, and wish everyone luck in their problems with the banks.
Solon
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