Foreclosure in Milwaukee>Question Details

Carlos006, Other/Just Looking in Milwaukee, WI

I am looking to get out of the rental real estate business due to family issues.

Asked by Carlos006, Milwaukee, WI Sun Aug 22, 2010

Assets in the portfolio are currently worth more than what I owe. However, I do not want to go through the hassles of selling or short-selling. I just want to hand over the properties and walk away. I am even willing to pay the differences if any. I have a lot of personal assets (but wouldn't want to lose too much). Just wondering if this is possible and if deed in lieu is the best way to go.

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9
would you send a list of proerties you want to dipose of to allbusinessxx@yahoo.com
0 votes Thank Flag Link Thu Feb 20, 2014
Great answers have already been provided. You could also just consider selling a few of them to start to get you through diversifying the remainder of the assets.
0 votes Thank Flag Link Wed Oct 23, 2013
There really is no easy solution. It is nice to deversify your portfilo to manage risk but when liquidating the portfilo is more difficult.

Short sales may be difficult if you have assets for the banks to recover losses and even if the banks do you allow the short sale, you may be subject to 1099 C filings and have the short fall reported as income and be taxed on that amount.

Selling the properties may take time but may allow you to move on with life.

The deed in lieu may be difficult to do without trying to sell the property first. Banks are not in a hurry to take on more properties without trying to liquidate when the borrower has ownership.

An investment is a investment, no matter if it is a stock or a property. The loss or gain is not there until the asset is sold.

If I was you I would analyze each property and liquidate them one at a time. Making the selection by property value or tenant/vacancy or your feeling about the property. If you sell them as a package I think a investor would hit you hard at this time in this market. In addition selling them on contact would be limited by the mortgage loans on the properties and the williness of the banks to allow a contract for deed.

Good Luck!

Keith Manson
First Weber Group
Certified Dissressed Property Expert
Metro Milwaukee

http://www.milwaukeebailout.com
0 votes Thank Flag Link Fri Nov 12, 2010
You might consider selling your properties with seller financing, or equity partnering. Please feel free to contact me if either of these ideas interest you, because I (or other investors I know) might be interested in that portfolio.

Also, keep in mind that deed-in-lieu with the 1st lien holder isn't an option for each property in that portfolio that has more than 1 mortgage or has a HELOC on it. The 2nd lien holder and/or the respective mortgage insurance companies could foreclose their interests too.
0 votes Thank Flag Link Sat Aug 28, 2010
I would first call your lenders and see what they say. From my experience with the banks. They have in the past been telling the owners that they need to list the properties with a real estate agent for 3 months. Then they would consider a deed in lieu. But that is not set in stone. If you need help you might contract an lawyer to see if they might be able to help you.

Debby
Homestead Realty
0 votes Thank Flag Link Sat Aug 28, 2010
I hear you about the hassles of selling... especially with tenants. You should discuss the situation with your lender. If you just hand over the keys and walk away without their approval, you've not lived up to your end of the bargain. I would never encourage that! A contract is a contract, and if it's just a matter of putting up with the hassle of the sale, well, that's your end of the bargain, not the lenders. But, it wouldn't hurt to ask them. They might have an asset manager that could take over easier than the lender itself, making them more willing to work with you.
Good Luck!
0 votes Thank Flag Link Sun Aug 22, 2010
Odd--my earlier answer here seems to have disappeared. Basically, so long as there's positive cash flow in the portfolio, it should be easy to dispose of your properties. It wouldn't be necessary, or even desirable, to do a short sale or a deed in lieu. There are plenty of ways an investor could take over the portfolio, allowing you to "walk away." You likely could get a better price by selling the properties individually, but it probably could be done quicker and with less hassle with a single investor.

Hope that helps.

Don Tepper
703/503-1453
Don.Tepper@longandfoster.com
0 votes Thank Flag Link Sun Aug 22, 2010
Don Tepper, Real Estate Pro in Burke, VA
MVP'08
Contact
Sure. That's easy enough to do. Just so long as there's a positive cash flow for the properties. I know some investors who'd be willing to do that.

And there's no need to do a deed in lieu, especially if the assets are worth more than what you owe. Similarly, there's no need at all to do a short sale. Just e-mail me and I'll see what I can do.

Hope that helps.
0 votes Thank Flag Link Sun Aug 22, 2010
Don Tepper, Real Estate Pro in Burke, VA
MVP'08
Contact
Carlos,

It really is a matter of the difference in debt to purchase price. If the difference is not to much then yes a deal could be worked out otherwise if you did not want to pursue a short sale then a deed in lieu is an option. I caution you though because a deed in lieu will affect your credit just like a short sale or any other such deal. Now if you could sell and pay the difference then you would not be affected. You might want to contact some agents in your area (maybe commercial agents) to find investors that are looking for rental properties. These days with the market the way it is a lot of investors would rather be in real estate then stocks. If you need some help finding an agent I can get you a referral through my national network. Just remember you need to interview several in order to find the agent that is the best fit for you.

Hope this helps,
0 votes Thank Flag Link Sun Aug 22, 2010
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