[Sergio027]

Hi everyone,

This is my first posting on this forum, thank you in advance for listening and replying.

My father currently is sitting on a portfolio of properties in Las Vegas that are ARM's and as you can imagine, he's about to have a huge spike in mortgage payments. He's attempting desprately to salvage his properties but is loosing hope real fast. I have a few questions, that hopefully as a community you can be able to assist me with.

1. If he defaults on a loan, will and can the bank come after my fathers remaining homes or put leans on them to collect?

2. Is shortselling an option? Can it be done multiple times?

3. Can you just take out a JUMBO loan and payoff all your realstate and have just one payment?

4. What other ideas should we consider?

I really hope you'll be able to provide some help with this. Merry Christmas and a happy new year.

Sergio

[desertsun41]

Originally Posted by Sergio027

Hi everyone,

This is my first posting on this forum, thank you in advance for listening and replying.

My father currently is sitting on a portfolio of properties in Las Vegas that are ARM's and as you can imagine, he's about to have a huge spike in mortgage payments. He's attempting desprately to salvage his properties but is loosing hope real fast. I have a few questions, that hopefully as a community you can be able to assist me with.

1. If he defaults on a loan, will and can the bank come after my fathers remaining homes or put leans on them to collect?

2. Is shortselling an option? Can it be done multiple times?

3. Can you just take out a JUMBO loan and payoff all your realstate and have just one payment?

4. What other ideas should we consider?

I really hope you'll be able to provide some help with this. Merry Christmas and a happy new year.

Sergio

The bank will come after the rest of his assets.

Shortselling is getting more and more popular. In many cases it is the only option but you still have to find a buyer when there are none. Why would anyone buy one of his houses for retail price when there is a foreclosure auction on every corner selling for 30 cents on a dollar?

No bank will give him a jumbo loan no matter how great his credit is. Think about it....woud you? The banks know the market better then all of us. They are already getting into the real estate business against their will.

What other options? As I sit here looking at the screen with a blank look on my face, I am at a loss to give you an answer. But so are the other 29,000+ sellers here. And so are the 400,000 home owners who owe more on their home then the their home is worth.

Welcome to the club and Merry Christmas to you too.

[jfkIII]

His best bet might be foreclosure. Think of it this way...at least foreclosure is an option that is put in place so we don't have to think of jumping off a cliff because we make bad financial mistakes, or unfortuate and unexpected circumstances arise.

The mafia never had foreclosure options...and some other countries don't either.

Try to have a Merry Christmas.

[mrmetoo]

Why do people just give up so easy and say go into foreclosure!!? And mess up your credit for next 10 years where he cant buy anymore houses! Probably not even decent vehicle. Try to work with good professional ethical investors first Sergio and only as a last resort accept foreclosure. Good Luck

[olecapt]

Originally Posted by Sergio027

Hi everyone,

This is my first posting on this forum, thank you in advance for listening and replying.

My father currently is sitting on a portfolio of properties in Las Vegas that are ARM's and as you can imagine, he's about to have a huge spike in mortgage payments. He's attempting desprately to salvage his properties but is loosing hope real fast. I have a few questions, that hopefully as a community you can be able to assist me with.

1. If he defaults on a loan, will and can the bank come after my fathers remaining homes or put leans on them to collect?

No...it is not impossible but it is unlikely. It involves foreclosing on the house which is a non-judicial act and then filing a court action to get a judgement for the amount not recovered. Then the Bank could go after other properties...which, if you think about it, is pointless...unless he has some with significant equity.

2. Is shortselling an option? Can it be done multiple times?

Probably the only one available. Price aggresively and hope the Bank will be reasonable. Difficult but not impossible.

3. Can you just take out a JUMBO loan and payoff all your realstate and have just one payment?

Only if He has a property with that kind of equity. And still very difficult.

4. What other ideas should we consider?

Stop paying. No use throwing good money after bad. Banks may decline to deal with a short sale unless in arrears. If any property has any equity you might try and protect it. Not likely though.

I really hope you'll be able to provide some help with this. Merry Christmas and a happy new year.

Sergio

Not sure there is any real help there...but Merry Christmas and Happy New Year.

[AA702]

I would try the short sale to start, then if that doesn't work then just give the properties up and file for chapter 7. Your credit will be shot for the next 10 years, but its not the end of the world. That really is the pits, but with any investment there are risks to be taken.

[Eric Young]

Recommendations made here are based soley on the limited information you've provided. You need to sit down with someone and review the portfolio in detail.

[psi2007]

Has your dad gotten any advice from the lenders? Get some advice from other investors who may have encountered similar problems. First he should find out what his options are. Don't wait for the ARMs to blow up head them off. Try to get refinanced if possible. Look for other investors to buy the homes. Get in touch with the local investors group or club. Contact the local association of realtors to see how you can get the word out to all the realtors. Post ads on the free internet boards. Good luck.

[airics]

what about refi or even renting the properties?

[olecapt]

Realistically folks the only hope is a set of short sales...and even that is difficult.

As Eric points out we really don't know enough for a precise answers. But it is not an unusual case. Baring some unforseen event they end up short or foreclosed. This guy is an investor with resetting ARMs. His chance of getting out without significant damage are very small.

A 300K home will cost you something like $2,200 per month for mortgages taxes, insurance etc. It will yield $1200 per month in rent. So you have to kick in $1,000 per home per month. With the property underwater and declining in value it is difficult to pay such a sum even if you have it available. It is called throwing money away.

The idea that the banks may provide useful advice is improbable. Basically they insist you meet your committments and keep the payments up. They only become somewhat rational after you are well behind your payments.

Refi is implausible. Why would a bank agree to finance a property that is clearly going to go short or be foreclosed. They ain't that dumb.