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Nephew Goes Upside Down

By
Property Manager with HomePointe Property Management, CRMC 00691121

I have a nephew with a young family that asked for some advice.  Seems their mortgage is now upside down and their mortgage payment has increased.  They wanted to know what to do.

The have tried to talk to the lender, but no response.

I told them that they have a few options.  Keep going with the minimum payment, try to short sell (but if the lender will not cooperate what good is that), walk away and rent somewhere else, or stop making their payment and eventually they will be contacted.

I don't much like the last option, but the lenders have put many people into a position to consider this option in order to get the conversation going. 

It is still not pretty out there, especially in California.

Posted by

Robert A. Machado, CPM, MPM

HomePointe Property Management

Sacramento, Yolo, El Dorado, and Placer Counties

We manage residential and commercial property.

916-429-1205 x 105

rmachado@HomePointe.com

Diane Rice
Rice Prprty Mgmnt & Rlty, LLC, South Holland, IL - Lansing, IL
SFR, SRES, CNC

Hi Robert!  Happy Labor Day!  Sure could use your input in the Property Management group when you get a moment!  Another option for him of course, would be to rent it out at a rental rate that would cover his piti, and give him a little profit, while he rents a much lower place until this rolls over. 

Congrats on  getting to 100,000 points... I have finally arrived too!

Diane

Sep 07, 2009 01:18 AM
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

Or....up deductions at work, get more NET in their take-home pay and cover their increased mortgagepayments * keep their house and tough it out....Real estate does not ALWAYS appreciate and the real estate market WILL COME BACK......their credit will be saved and when re-financing options are available, they will have a home to re-finance....

Sep 10, 2009 10:49 PM