Hey Guys,
I've been sitting on a house I bought back in May, which I had completely remodeled and listed by June. To make a long story short, we've had tons of viewings but no contracts -- and I think it's due to some foreclosures that happened in the neighborhood right after I got in, which really brought the area down.
Anyway, because of the current lending crisis -- I was not able to get a traditional mortgage for this house when I bought it, so I paid some cash, and put the rest on my lines of credit.
Flash forward to now -- I'm considering keeping the property as a rental, so I called my mortgage broker today to find out that he can't make a loan on the property now because I have had it listed in the MLS. Apparently I need to wait 6 more months before any banks will touch it. Has anybody ever heard of this? Must be one of many new rules to help keep us safer from those evil lenders!
So I've got some decisions to make.... Here are my options as I see it:
1). Keep the house listed, and hope for a sale (I've already dropped the price 3 times by the way, and I'm now $15k below my last sale in this neighborhood. At the current sale price I'm only going to make about $7-8k... A far cry from the $20k I originally planned to make on this deal!)
2). Rent it out and keep making the high monthly payments on my lines of credit (I think the rent would be about $800, and my payments per month are around $1100) -- This is the "slow the bleeding" approach....
3). Look for a private mortgage of some kind where the lender won't care how long I've had the house or that it's listed for sale? Maybe the bleeding would be even slower with this approach, since I think the payment would be less than $1100 per month....
4). ????? (Rent to own? Lease option?)
What do you guys think? I need $70k out of it to just pay off all my lines of credit and become debt free again. The house should be worth $110-120k, but is listed for $109.9k. Rent would be $800/mo...
Would like to hear some creative solutions
Cheers,
- Hakrjak
I've been sitting on a house I bought back in May, which I had completely remodeled and listed by June. To make a long story short, we've had tons of viewings but no contracts -- and I think it's due to some foreclosures that happened in the neighborhood right after I got in, which really brought the area down.
Anyway, because of the current lending crisis -- I was not able to get a traditional mortgage for this house when I bought it, so I paid some cash, and put the rest on my lines of credit.
Flash forward to now -- I'm considering keeping the property as a rental, so I called my mortgage broker today to find out that he can't make a loan on the property now because I have had it listed in the MLS. Apparently I need to wait 6 more months before any banks will touch it. Has anybody ever heard of this? Must be one of many new rules to help keep us safer from those evil lenders!
So I've got some decisions to make.... Here are my options as I see it:
1). Keep the house listed, and hope for a sale (I've already dropped the price 3 times by the way, and I'm now $15k below my last sale in this neighborhood. At the current sale price I'm only going to make about $7-8k... A far cry from the $20k I originally planned to make on this deal!)
2). Rent it out and keep making the high monthly payments on my lines of credit (I think the rent would be about $800, and my payments per month are around $1100) -- This is the "slow the bleeding" approach....
3). Look for a private mortgage of some kind where the lender won't care how long I've had the house or that it's listed for sale? Maybe the bleeding would be even slower with this approach, since I think the payment would be less than $1100 per month....
4). ????? (Rent to own? Lease option?)
What do you guys think? I need $70k out of it to just pay off all my lines of credit and become debt free again. The house should be worth $110-120k, but is listed for $109.9k. Rent would be $800/mo...
Would like to hear some creative solutions
Cheers,
- Hakrjak
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