Foreclosure in Fort Wayne>Question Details

Milt Brown, Home Seller in Fort Wayne, IN

I have an investment property I cannot sell. What happens if I just stop paying on it?

Asked by Milt Brown, Fort Wayne, IN Wed Mar 19, 2008

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I agree with the other agent. Try your hardest to sell it even if you end up losing some money. It could be years before the negative impact on your credit passes. Try doing a short sale, or better yet what avenues have you tried so far to rid yourself of this property?
1 vote Thank Flag Link Wed Mar 19, 2008
Hi Milt,

It sounds like you owe more than the property is worth in your market. Contact your lender; they likely don't want to take on the additional inventory. Most lenders have a lot of programs and options such as the possibility of a short sale. A short sale would give the lender something less than what you owe.

There is a lot to consider however, things like tax issues if the lender considers the short portion as income. They may also suggest a loan to you for the difference. Be sure you get the whole picture and understand it thoroughly. You may want to consult with an experienced agent and an attorney.

The agent can provide you with a complete understanding and picture of the market and the attorney can consult you on the legal and financial implications.

Best Regards,

George Anton

Connecticut Shoreline Property Specialist
Madison, Connecticut
http://www.ShorelineRE.com
george@shorelinere.com
800-759-6936
Web Reference: http://www.ShorelineRE.com
2 votes Thank Flag Link Wed Mar 19, 2008
If you stop paying, the lender wil begin foreclosure proceedings. This will damage your credit and in the future you will be denied credit or it will come at an increased cost.

Even if you owe more than the value, it may be worth it to sell it and bring $$ to the closing table. That expense might be a smaller price to pay than the limitations placed upon you as a result of a foreclosure. Lower the price and work out the difference w/ the lender. If you really lack the money to bring cash to the closing table, you can look into a possibility of a short sale.
1 vote Thank Flag Link Wed Mar 19, 2008
Deborah Madey, Real Estate Pro in Red Bank, NJ
MVP'08
Contact
rent it out, save your credit rating.
1 vote Thank Flag Link Wed Mar 19, 2008
Really? You'll ruin your credit!
0 votes Thank Flag Link Mon Jun 27, 2011
Are you interested in sale of this property? contact me on ash.dixit@transmark.com
0 votes Thank Flag Link Mon Jun 27, 2011
Hi Milt

There are a couple of options a loan modification if you want to keep the property or a short sale. You should call your current lenders loss mitigation department, explain your situation and fill out hardship or short sale paperwork. Then you will know what kind of payment terms are available with the loan modification and be able to make an informed decision on which option is best for you.
0 votes Thank Flag Link Sat Apr 18, 2009
Call your bank and see if you qualify for a short sale. A short sale doesn't impact your credit as bad as a forclosure does. I am short sale certified in Fort Wayne and I would be happy to help you out if you decide to list it.
0 votes Thank Flag Link Sat Apr 18, 2009
is your property rented? if it is, that makes it more difficult to sell. ask your tenants if they would consider leaving so you can sell, or you may force foreclosure, which would cause them to leave anyway. Then you will have an easier time selling it, because it will show easier and better.

if it is not rented, and you still cant sell it, then refer to everyone else's answers of short selling or foreclosure.
Web Reference: http://www.realascent.com
0 votes Thank Flag Link Fri Apr 17, 2009
If you stop making payments the sender will forclose on you.

It would be best to attempt to sell it even if it is at a loss. At least you will have the tax write off and keep your credit in tact. Good luck.
0 votes Thank Flag Link Wed Mar 19, 2008
Pam Winterba…, Real Estate Pro in San Ramon, CA
MVP'08
Contact
The property will eventualy go into foreclosure and have a negative impact on your credit.
You may want to consult with a local Realtor. If you like I could find one for you.
0 votes Thank Flag Link Wed Mar 19, 2008
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