Need Info About Renting/foreclosure

My friend needed to look at his options like that. He went to Eric Glick http://ericglick.com/ for advice. I kinda wish I did when I couldn't make my payments. Eric was very good at advising my friend on many angles to the point where he felt good just walking away from the house.

Oh and if you're interested in selling short sale... try www.terigunn.com
Teri is my preferred realtor, (and I've met a few over the years). She is well versed in short sales, and has a heart of gold.

Jenni,

Can you tell me a little about the house. I know several people that are looking to rent including myself.

Why is it?
How much?
Size, bedrooms general description?

Thanks C.

Go for a free consultation with a bk lawyer..and then another, and then talk to your accountant.

Whether or not they will come after your business relates to the underlying loan documents for your business and whether the mortgage on the rental is with the same bank you have your business debt with. If it's the same bank and either your or the business gave a mortgage on the rental as collateral for the busienss loan and you and/or your husband signed what's called a personal guaranty of the business debt, then yes they can come after you personally for any deficiency balance resulting from the foreclosure sale. I'm a paralegal in Grand Rapids and work on this type of stuff all day long.

Have faith and be positive. Simple but not always easy, I know.

Foreclosures usually take a year to happen. If your financial institution knows you are working at paying your mortgage, I am certain they have several options for you.

At this point have you tried to get another tenant? Again, be positive in thinking there is someone out there who is looking for a house just like what you have. You'd be amazed at the results.

Also in your a little about me, I see you are looking to connect with moms in your area. Many churches have MOPS (mother of preschoolers) groups. There isn't a charge to belong. If you go online and do a search for MOPS, it will give you the information you need.

Many blessings,

M.

I agree with the other ladies, try to rent out again. If you have to, rent it for cheap...it will go fast. When my husband and I got married we rented my house after no luck selling for months. We rented a bit cheaper than comps in the area and had great response..it costs us a little out of pocket each month but we have been happily renting for 2 years and it was well worth the little money it costs to have that burden of paying 2 mortgages off of our shoulders.

Jenni, I am interested to see what others post as I am in a similar position. Rental that won't rent. Mine is in AZ and we have spent the last three years trying to keep hold of it while tenants skip out causing damage, we have now depleted all of our resources and are getting into debt trying to ride this out (the value has also dropped 66% in the last 3 years). I now have it listed with a real estate agent who is experienced with short sales. At the same time, I will not be paying/cannot pay the mortgage this year - this is a first for me as i have never been behind in my life (so I will be really stressing out after the 15th). I will be talking to my accountant on Monday to find out the tax ramifications and I am in the process of trying to find a cost effective real estate lawyer who is familiar with AZ laws.

What I do know... previously, if you settled with your mortgage company for less than you owe (owe 100k, sell for 60k, bank forgives 40k) then the IRS would consider that you had 'earned' 40k and would tax you on it. They will not do that now through 2011. If you go the short sale route it will be less of a hit on your credit than a foreclosure (I am hoping to sell before foreclosure happens), the bank takes about 3 months to respond to an offer and can request/demand that you pay some or all of the balance outstanding (you do not have to agree). I understand there is a new law coming in April that forces the banks to respond within 10 days. Because it is a rental/not your primary residence you are not eligible for the government sponsored refinancing/mortgage adjustment. All the information on the web about foreclosures is about how to hold onto your home - there is no/very little info regarding rental properties or how to go about foreclosing.

I am continuing to pay the property insurance and the electricity as i am still responsible for the property and it will be easier to sell if they can turn the lights on.

My best advise to you is to talk to your accountant, find a realtor who is experienced with short sales and find a real estate lawyer to let you know what the banks can/cannot do.

Good luck, it is a horrible and stressful position to be in.

Update - I had been renting out my condo "for cheap" but it still didn't stop the tenants from causing damages and skipping out - even with a 'reputable' management company. By all means, try renting but be prepared for the possible extra costs involved (painting, repairing holes in walls, replacing carpet and appliances - all cost more than the rents I received). Many of todays renters already have bad credit and have little or no respect for your property.

It all depends on YOUR area and YOUR house...

We have friends who needed to move and posted their house as a rental... It was rented out, papers signed 8 hrs later. Their neighbor's house rented in less than 48...

Check if there is a "rental listing" online for your area. List on craigs list etc...

Where is it located. We are always looking to rent. We rent now and love it but may need to move soon. We would need at least a 3 bedroom house min 1100 sq feet. We are in troy now.