Rich Man/Poor Man What is possible for my future?


LoanSafe Member
Please guide me to th correct forum if I am writing in the wrong place.
I was a very successful businessman for a very long time and during the 2008/2009 depression/recession lost everything and almost my home.

I fought so long and hard to keep a home that I lived in for over 30 years and finally got a Hamp 6 months ago at 2% with 26 years.

The good news is that I'm safe here and there is no longer any risk of foreclosure.

The other really good news is that I have more than $700,000 equity in the home.

The bad news is that, as a result of some many of the credit related actions I was forced to take, my credit score is in the 350 range..It could not be any lower.

Alot of this came from having gotten onto public assistance for several years.

I had defaulted on around 8 credit cards and everytime I received a summons, rather than ever allowing myself to have a judgement against me, I answered everyone of these sommons and went to my court date and, well, I guess, relative to my circumstances, I got lucky because somewhere between the plaintiff and the judge. almost all of these defaulted credit cards were thrown out.

They were either "dismissed with or without prejudice" or simply "discontinued" and on 2 of them where they just would budge I made a settlement for around 25% but, more important, I only have to pay $15 per month.

The range of the balances on these cards were from $8000-$25,000.

So, in addition to not having paid my mortgage for 37 months but would up getting a hamp modification where they added the arrears onto the principle balance to bring me current which I will stay forever.... I have this plus the 8 credit cards that were defaulted on and charged off...all of this added together which gives me a credit score of 350 and there is nothing that I can do to cause it to go up at all,,,,even 25 points.

But,,, I have a home that I am current on with no risk, which is rising in value like crazy (Manhattan) and over $700,000 equity in it..

The main problem I can see is that even with all this equity, I feel like I can NEVER sell the house and move to another house because of the low credit and in spite of the equity.

Whar kind of options and future are possible for me.

I know this is a one of a kind situation.


LoanSafe Guide

Thanks for your post.

Although you've been through a lot, there is light at the end of the tunnel.

If I were you, I'd consider selling the property to release that large equity. You could then buy another property all cash.


LoanSafe Member
Thank you for your response. It seems like it is the most sensible thing to do but I cannot overstate the emotional attachment that comes with living in your favorite building, in your favorite neighborhood in all of New York for 35 years!

Yes I will have a good amount of cash but I will also have ZERO credit.......

At least I am not in a rush to make a decision.

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
I agree with Tom here in his suggestions, you really have to leave the emotional attachment out of the picture when evaluating what your plans are for the future and go with what's going to suit you and your family the most.

What you can always do is get your credit repaired in the meantime and then once that has gone up you can start looking at purchasing another property. There are also portfolio lenders that don't really look at credit too heavily and previous history. If you have a large portfolio of assets and are willing to put a significant amount down there may be options available now. In the meantime you might want to get a secured credit card from your bank and then keep that balance under 30 percent of the credit limit and continue to pay. I personally can't give you advice on how to repair your credit but that's definitely where I would start. Another thing to look into is a credit repair agency; in many cases they can get items removed from your credit report by disputing the validity of the debt.


LoanSafe Member
Thank you very much for your time.

I did allow myself, for a few seconds, to give a serious thought about a credit repair agency.

But, there is this gut instinct that makes me think they are, for the most part, scams... But that could be bias on my part.

One of those name names that keeps coming up everywhere I turn that seems to look somewhat legit is called "Lexington Law"
Anybody heard of them?

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
I have heard of them and have actually heard good things about them from previous clients. I also have clients and friends that have used a company called Continental Credit, Toby Reschke is my contact over there and don't go by the prices on the website. There's a special deal it's an 89.00 enrollment and 59.00 per month after that, can cancel anytime. They will also look at your credit and see if they can even do anything and tell you up front if it makes sense or not.

Again at least this is what they've done for my people, maybe mention my name if you decide to work with them? I don't get anything out of it and very rarely do I recommend another company.

Evan Bedard

Call 1-800-779-4547
Loan Safe Mortgage
I have come across many here and know several people personally who use this firm, they definitely seem legit and I haven't heard any negative feedback.


LoanSafe Member
I disagree with the notion that most of them are scams. The majority of them are going to want to help (while still making money of course) remember that a few bad apples ruin the bunch. I am sorry about the situation that you are going through but you seem to have a good head on your shoulders, though it may not always be fun, you will get through it.


LoanSafe Member
I thank all of you for your kind responses.
But, for those who were suggesting that I sell the condo because I have so much equity in it,...I think if I just pointed out the numbers I would most likely get different advice.

There is one thing that everyone seemed to forget about...TAXES!.

I bought the place 25 years ago for $99,000 and could sell it for $1,300,000.
Not only that...the average time from listing until closing in my building is 17 days.
Yes, that's a good thing BUT.

Have you calculated what the capital gains tax would be in a $1,200,000 profit?

And I even have a $400,000 capital loss carryforward that can be used to offset some of it...but still, the taxes would kill me and I would not walk away with the kind of money that seems apparant at first.

Also, my 1st mortgage is $385,000 and my Heloc is $525,000

I have a Hamp modification on my 1st mortgage at 2% which means every month almost all of the money goes to paying off principle.
I have been offered a 2MP on the Heloc at 1% which would be basically the same as just paying off the principle as well.

The point is...the longer I keep it, my equity is growing at a super rapid pace.

Can anyone give me one reason, under these conditions, why it would be better to sell it now as oppossed to renting it for $5000 a month.

If I'm renting it, then I still own it and I own alot more of it every day that passes and at some point I can always come home when I straighten things out in my life.

Once you sell it..that's it I will NEVER be able to buy a $1.3 million home again as far as I can see.

But as long as I own it...then I own it and it is paying itself off at a 1% and 2% rate.

It is very easy to do short term furnished rentals in NYC. I have checked and places much less desirable than min are renting between $4000-$5000 and my monthly costs are $3000.

I'm waiting to hear someone give me a solid reason why selling it would be better than renting it out.