Lisa Bender

Cade ... there are a lot of helpful answers in this post. A lot of people think short sales are a quick fix. It does not sound like you are looking for quick fix. You've been dealing with a $500 deficit on your rental property and for most people $500/mo is big. Here's my recommendation:

1.) Talk to your CPA (good point Keith). You do get to write off depreciation, interest, etc from your rental property. Maybe even think about whether your maximizing your write offs. Are you keeping good track of everything you spend on the rental home. There is a lot to consider at this stage also. Like how are you paying for the $500 expense? Does your paycheck cover it, are you draining your savings, taking loans from 401(k)'s, cashing in other assests to make it every month?

2.) If after CPA you determine it still isn't working, aboslutely talk to the lender and see what they can do in terms of a loan modifiction. This may save everything until you sell it for what you need out of it.

3.) If loan modification doesn't help, your draining your entire life savings, CPA says it doesn't make sense, then I wouild at least consider a short sale. While damaging to credit it's not as damaging as a foreclosure. And as you can see, if you've exhausted all your resources and the banks can't help with loan terms what else can you do? Don't let anyone try to make you feel like you're opting for the quick fix. There is nothing quick or easy both financially and personally about dealing with a problem like this. I've helped many people with short sales and it's heart breaking, but when it's over there is a huge sigh of relief.

If you know there is no way you can continue and you are on the verge of missing payments, absolutely consider a short sale. Speak with your lender, hire an experienced short sale Realtor and get the home on the market. Don't let thing gets too far ... be proactive.

Sincerely,
Lisa Bender - Wed Jul 2 2008, 05:41

Hi Cade:

I actually have 2 short sales in Dearborn right now. One on Powers and one on Merrick. You definately want someone who knows what they are doing and likes doing short sales. A lot of agents just don't like all the extra work and I can't blame them. It takes twice as long as usually pays less. But, the market is what it is and all we can do is help as many people as we can get through these difficult times.

Have tried calling your bank and inquiring about a loan modification?

If short sale seems to be the answer, it is true you can try and work it so that banks will agree to not come after you for the deficiency, but it's never a gaurantee. I would love to speak with you more about it. If you'd some additional advice, please feel free to give me a call or email me directly. Here's also a good link for more info on how to avoid foreclosure: http://www.hud.gov/foreclosure/

Best of luck.
Lisa Bender - Tue Jul 1 2008, 19:09

Hi Gail,

Having 2 mortgages is not a problem doing a short sale it's just twice the amount of negotiations. You have to get both banks to agree to a payoff amount. Get a number from the first and negotiate like crazy with the second. A good rule of thumb is that 2nds like about 10% of balance but I've seen them take as little as a $1000. They won't get much from 1st (if anything at all) if the house goes back to 1st bank.

Give me a call I can help walk you through the negotiations or if sellers are just trying to do it alone I can help whether it's listed for sale with a Realtor or not. - Thu Jun 26 2008, 10:22

Steve ... I did a little research. I'm not sure I would consider it a good deal. If you're not working with an agent, shoot me an email.

Best of luck,
Lisa Bender - Wed Jun 25 2008, 09:33

Hi Karenni. I have an excellent Realtor contact for you in the Lansing area. She's the best in the area and she will help guide you in how to best showcase your home regardless of your situation.

Sometimes in this situation, you just have to price the home appropraitely. If you're unable to get ready for showings, price it aggressively is the best circumstance. But, even some small changes and make remarkable differences.

Drop me an email and I'd be more than happy to give the contact information.

Best of luck,
Lisa Bender - Sat Jun 14 2008, 11:19

Call Bob Carta at Key Financial 734-521-2131 or email at rcarta@keybranch.com. Tell him I sent you.

Best of luck,
Lisa Bender - Wed Jun 11 2008, 15:19