Florida Sinkholes!

NEW -> Contingent Buyer Assistance Program
Would the bank be that generous to let you just "walk"? Knowing you have other rentals, income of 170k and 200k in the bank.
 
<p>As you have mentioned, the 2 rentals are not profitable. But yet, you have 200k in the bank. Wouldn't the bank asks, "Why aren't you using your money to cover the shortage?" It's not like you're flat broke. </p>

<p>I would assume the bank to be more forgiving had you have no money. But this is not the case.</p>

<p>I am sorry but I just don't see the logic in this. If your rentals were profitable, you have no problem raking in the dollars. Now that the rentals are losing investments, you want to "walk"? </p>

<p>I guess to put it into another perspective would be this: I borrow the bank 250k to start a business. After the 1st year into business, I'd spent 60k and realize it's not profitable. So I close down my business and "walk" keeping the remainder of my loan? Will any banks allow this?</p>
 
<p>To clarify: I am not saying you kept any money from the bank. But you did borrow more than 500k to purchase the 2 rentals. You speculated that the 2 rentals would generate incomes for you. Now you realize they're bad investments. You want to toss these properties back at the bank(s) and essentially say "screw you"? </p>

<p> </p>
 
From your thought process on resolving this dilemna. It's almost as though there was a disclaimer in the loan documents that says: "Should the properties be not profitable. The borrower reserves the right(s) to 'walk' ".
 
advantis - in california, if you "buy" a property with a purchase money loan (this is the original loan used to buy the property) and it has not been refinanced, it is considered a non-recourse loan and therefore the bank cant go after any of your other assets - you have to live in the property though. In CA if you would have bought them as investments, which you did, since you are not living there, they would be considered recourse and they can come after your other assets. Having 200K in the bank is not going to help your case. Maybe putting your money in irrevocable trusts could help you out, but that is beyond the scope of my knowledge - im sure an attorney can help you strategize with your situation.





Not sure what the law is in Florida. Maybe Lawyerliz can chime in here.
 
<p>I wrote a bunch of stuff and hit the wrong button and stuff disappeared.</p>

<p>Short version is all Florida mortgages are recouse, and all institutional lenders ignore this fact to date. If I represented them I would tell them to kick butt. They don't want to spend money separating wheat from chaff, so I doubt this will happen.</p>

<p>Had a client come in today, a no-brainer. Young couple moved across state to Cape Coral area; he sets tiles. Bottom falls out of mkt; he loses job, she has baby. They pay until July and come back to Miami where he gets a part time job. 100% down.</p>

<p>Property probably worth AT LEAST 40 grand less than what they bought it at. Probably more like 50 or 60 grand. They'd probably qualify for "bail out", if they brought mtg current and both worked 2 jobs and neglected baby. But why? There is no work at all over there. </p>

<p>They said what should they do? I said nothing. Your credit is shot. Do we go to court? Nope. Do nothing and they'll take the house away and that will be that. And, I think, no moral issue either. They would be competing against new houses and all the other foreclosures too. Foreclosures up over 1000%, as per a post yesterday. Worst foreclosure area in the country.</p>

<p>But they have no assets to go after. Also, they did fix up the house, spent money on new kitchen and bathrooms, because they intended to live there forever, and she would stay home and make pretty babies. Oh, well.</p>
 
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