Two investment properties – vacant lots secured with variable rate loan. Income declined but can’t sell. Want to modify.
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Two investment properties – vacant lots secured with variable rate loan. Income declined but can’t sell. Want to modify.
Bought two lots near water five years ago with a loan package set up by realator and local bank. Market crashed, value tanked. Realator no longer in business and bank no longer even offers the same type of instrument (2y interest only, then 15y variable rate.) Have tried to sell for almost two years, household income down, if the rate adjusts up again I may not be able to keep up. Still current on everything today. Just want to lock or modify.
Asked on July 3, 2009 under Real Estate Law, Florida
Answers:
J.M.A., Member in Good Standing of the Connecticut Bar / FreeAdvice Contributing Attorney
Answered 14 years ago | Contributor
I am a lawyer in CT and practice in this ara of the law. Have you tried to refinance with another lender? I suggest hiring a mortgage broken to find out whether you can refinance to pay off the existing loan and then have a new loan that is fixed for 30 years. if the property does not appraise out for the amount of the loan, then you can try to do a short sale to get rid of the property if you cannot afford the payments in the near future. I suggest trying to talk to the bank about doing a loan modification as well to help. this will lower the interest rate and permit you to keep the property.
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