Home Selling in 90710>Question Details

Felicia, Other/Just Looking in Harbor City, CA

I am currently renting out my condo, and I have a file opened with Countrywide to try get my Option ARM

Asked by Felicia, Harbor City, CA Wed Jan 9, 2008

converted to a fixed. They say since I don't quality for a refi because I have moved out of state and am renting out the place, this is my option. It sounds good, but I'm wondering how low they are willing to go on a fixed for me. My FICO is good -- over 720 -- and I've never been late on a payment. But I can only afford the minimum payment, which puts me in negative amoritization. Yes, I am kicking myself for not realizing this would happen. However, I'm hoping that they can help me out. I still want to sell it. I tried to sell it a few months ago, and I got no bites. I needed to rent it out and move out of state. I'm thinking of putting it back on the market, but with prices so low in my area, I may not get enough to even break even. Any thoughts?

Help the community by answering this question:

Answers

3
Unfortunately, you don't have many options. You can only afford the minimum payment on an Option ARM, so I'm not sure how a fixed rate (if it's higher) will help. If your ARM has already reset and a fixed rate would be lower--and it would be something you could afford--then try a lender other than Countrywide. And with the shape Countrywide is in, they may not be eager--or soon even able--to do a refi on your property.

Other than reducing your expenses, your only other choice is increasing the income. Can you raise the rent? If so, how much? Will that help?

If you put it on the market and sell at a loss, can you handle the loss?

Did you have a good real estate agent the first time around? Was the property properly staged? Did the original agent provide any feedback on pricing, condition, etc?

All things to consider.

Good luck.
0 votes Thank Flag Link Wed Jan 9, 2008
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
I pretty much break even with the rent, and my tenants are good. I hired a property management company, and they have been excellent. My ARM resets in two years the way that I'm going. But I'm going to try hard to get Countrywide to move me into a fixed rate.
0 votes Thank Flag Link Wed Jan 9, 2008
You and everybody else. The Option ARM is going to go down in history right along side the S&L crisis of the 80's. I hope you have positve cashflow, a good tenant, and another couple of years before the ARM full adjusts.

If the condo market in Harbor City is anything like it is in Denver, it will be a while before you will be able to sell. We can't give them away.
0 votes Thank Flag Link Wed Jan 9, 2008
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer