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We bought a 'Multi-Family-Residence' [a single building with multiple apartments] in an area near to a Navy base where we knew that I would likely be stationed many times.
We planned on the rental income helping us to carry the mortgage payments.
For us this plan worked very well for 19 years.
During that period of time, two casinos were built within a 6 mile radius, and both of them were in competition to become the 'World's Largest Casino' [Foxwoods and Mohegan Sun/Moon]. This caused the local economy to change over a period of years, such that these two big employers became the primary focus of all the local economy. They imported new employees, and there was a housing boom.
When the economy collapsed, the casinos went through a series of huge lay-offs. With the layoffs people left the area, apartments were left empty, there became a housing surplus. My tenants lost their jobs. I lost rental income, and after 19 years I was no longer able to carry the mortgage.
I put the property up for sale. Our realtor found three willing buyers, who would each pay off the loan. I did not price it to make any profit. I only wanted to get out, get a buyer to pay my outstanding principle and take it so I could wash my hands of it.
All of this was submitted to the bank. They could choose which buyer could buy the property.
The bank refused to allow us to sell.
There was Obama-money to be had, the bank wanted to follow-through with a foreclosure so they could get the property to qualify for bail-out money. Instead of simply taking the cash from selling the property.
Apparently the bank thought they could get more money via the bail-out than simply the outstanding principle.
After a month of arguing with the bank, I signed a quit-claim deed and gave the property to the bank.
The bank's lawyers refused to accept the deed in that fashion.
The bank started a foreclosure, plus their lawyers filed a law-suit suing me for the principle, PLUS the deed, PLUS $10k in legal fees.
The bank wants to double their money.
The bank was calling me daily, wanting one set of forms filled out; then another set of forms.
It came out that the bank had messed up their paperwork, and could not process this property in the proper manner required to get the bail-out money.
So instead of the bank getting just the principle they were counting on doubling that figure. Since their paper mess-up lost them the ability to double the principle, they want to sue me for it.
I filed bankruptcy.
Now after my bankruptcy has been finalized, the bank still calls me to pester me, every time I refer them to my lawyer.
The bank still sends me letters. They have refused to acknowledge my bankruptcy. I divert all of their letters to my lawyer.
I have not contested their foreclosure. I gave them the deed to the property. It has been 18 months and they are still after me.
The bank has still not been able to finalize on their foreclosure. They are still in court over it.
I did buy property that had a mortgage payment more than my salary could afford. Now I am retired, so my income is even less.
Nobody predicted the economy collapse, I am at fault as much as everyone else is.
For 19 years I was able to carry that mortgage by using rental income and it worked.
I am not mad at that bank because I am not able to carry the mortgage any longer.
I am mad at that bank, for refusing to accept a buyer. They refused to take cash in exchange for their lien.
I am mad at that bank for refusing to acknowledge my bankruptcy.
I am mad that at bank for suing me in their attempt to double their money.
I am mad that at bank for continuing to pester me now.
Question - if you had made a huge profit after all those years, would you have shared it with the bank? Just askin'
Give the guy a break. Firstly, he is taking full responsibility which is something that is rare these days. He had a few buyers to take the property off his hands and the bankers won't let him. If everything he says is true, I blame the banks here.
You must have read an entirely different post. I didn't see anywhere in there where he took any responsibility, let alone full.
He's not whining. You are. He took a risk, it paid off for many years, and in the end fell through because of the economy and a greedy bank.
People get ahead by taking risks, sometimes they work, sometimes they don't. It seems to me this guy did everything he could to make things right.
So stop whining.
I agree.
He stated he had buyers to pay off the mortgage. The bank refused the buyers so it is the bank's fault, no excuses. They chose to try to make money with bailout money instead of taking the money via a sell for the property.
I am mad at that bank for refusing to acknowledge my bankruptcy.
The bank had their chance to contest the bankruptcy at your hearing with the bankruptcy judge, did they even send a representative?
When peole tell me they are thinking of getting rental/income property one of my first questions is "Can you make the mortgage with no tenants?", usually this answer is "no, but I will always have tenants" , another question is "can you handle a major repair?" .
Not too many businesses can go very long with no or limited income, "too big to fail" doesn't apply to Mamma Mia's Pizza or Stan's Deli.
It must be nice to live in the dream world some posting in this thread live in.
He stated he had buyers to pay off the mortgage. The bank refused the buyers so it is the bank's fault, no excuses. They chose to try to make money with bailout money instead of taking the money via a sell for the property.
He could have continued paying his mortgage, per his loan agreement.
Why is the the bank expected to ignore good business practice, and he gets a pass? He's the one that couldn't pay his mortgage.
I think I did. In the form of interest payments every month.
The majority of the rental receipts I took in, went to the bank.
My 'profit' was in building equity.
Wow, no wonder your "business venture" failed. You don't know the difference between interest and profit.
The interest was for lending you money that you didn't have. Should the bank have given you money for 19 years for free?
If the majority of rental receipts were to the bank, you were cutting your margins WAY to close. Bad business practice.
So I'll ask you again. If you had made a profit, would you have shared it with the bank?
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, another question is "can you handle a major repair?" 
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