Close to Foreclosure - What do I do?

[Faith]

I'm a new investor who was dragged into buying new homes and flipping it after. Unfortunately, after buying 2 high end homes...the flipping part didn't happen.
This is the month where I know I need to do something because I can't make my mortgage payment on my 2 investment.

1st - do I apply for hardship?
2nd- go foreclosure - deed in lieu
3rd-chapter 13?

what will happen to my credit?
I've never been late so this would be the 1st time. How should I market this house in California? The community is close to a million but I'm selling mine at least 200,000 less.
Please HELP!

[ResaleBroker]

Regarding choices 1,2, or 3 I would recommend seeking professional council outside of the forum.

Regarding moving the properties, are the homes for sale? If they are for sale, are you selling by owner or agent?

[Homesurfer]

Mortgage lenders have zero sympathy for a non-owner-occupied borrower who cannot or does not make his mortgage payment. You're an investor and are supposed to about risk and potential hardship.

Most lenders will not accept a deed-in-lie of foreclosure because their situation is not quite as clear legally. Non-judicial foreclosure is the preferred process in most states.

If you file a chapter 13 bankruptcy, all it does is help you with your delinquent payments. All of your delinquent payments are lumped into one sum and you make a monthly payment to the bankruptcy trustee who gradually pays off your delinquencies. As soon as you miss a sceduled payment, a mortgage lender will file for "Relief from Stay" so they can continue the foreclosure. Plus, your future payments (including mortgage) must still be paid on time.

What you should tell us is how much you owe on the property and what the sales price is. That's most important. How long has it been on the market? Is it located in a strange or unusual area? Is it priced comparably for the neighborhood? Do you have partners on title and on the loan? Do you all agree on selling strategy, price, etc.? Did you upgrade the property when you bought it to flip it?

Investment always carries RISK. If it was EASY and CERTAIN, everyone would be an investor. Social Darwinism at work.

[Faith]

It's a high end luxury property so I owe $850k..yeah..that big! I need to sell this as quickly as I can. The comps in Vallejo, Ca in this area are between $950 to more than a million. Why am i having a hard time? the builder is still there and taking all the buyers...that's why. He's giving them sweet deals or I really don't know. I have no partners except my husband. Nothing is upgraded. We were suppose to live here for 2 yrs but because of work reason...it didnt happen. We just want to get out..we're not making any money here...our price sounds great. Is there a place we should advertise this? My husband just got his RE license but doesnt specialize in luxury homes. I'm using my credit card to pay for this mortgage but I really need HELP!!!!

[ResaleBroker]

My husband just got his RE license but doesnt specialize in luxury homes. I'm using my credit card to pay for this mortgage but I really need HELP!!!!

Faith, have you considered listing the property with a top producing real estate broker in the area?

[Faith]

I have thought about it but I just spoke to one the realtors we know and offered here 4% commission...I know it seems like we're giving all the $$ away but we are desperate. Is it good to advertise this luxury home to all the newspapers including wall street..usa today..chronicle? I've emailed a lot of realtors specializing in luxury homes.

[ResaleBroker]

I have thought about it but I just spoke to one the realtors we know and offered here 4% commission...I know it seems like we're giving all the $$ away but we are desperate. Is it good to advertise this luxury home to all the newspapers including wall street..usa today..chronicle? I've emailed a lot of realtors specializing in luxury homes.

Faith, how qualified are you to sell a home like this/these?

If you're not qualified then aren't you really gambling with your financial future?

If Realtors in your area are working with 80-90% of all the current Buyers on the market what could you possible hope to gain by NOT using a top producing Realtor/Broker? Especially when they are going to sell it at "Fair Market Value"?

[jessiesc]

I have thought about it but I just spoke to one the realtors we know and offered here 4% commission...I know it seems like we're giving all the $$ away but we are desperate. Is it good to advertise this luxury home to all the newspapers including wall street..usa today..chronicle? I've emailed a lot of realtors specializing in luxury homes.

My opinion:

While 4% may seem like alot to you, in actuality it is not a lot to a top producing realtor or actually to any agent.

Try to remember that the 4% you are offering will be divided twice. 2% to the selling office and 2 % to the listing office. Then divided again, a percentage to the broker and the remainder to the agent.

Many sellers think Real Estate agents make EVERYTHING on a sale. This is not true.

I would not suggest you try and market this property yourself. It will be too expensive and put all the liability on you. For this sale, you need a professional!

I would suggest the following:

Offer a full 6% commission to a top producing realtor. If you can't find one, PM me and I will find one for you.

Let the agent set the price to move the property quickly, if you have to take a loss, TAKE IT! It's either lose a little now, or destroy your credit worthiness and possbily your future finances!

[kensmith]

Jessie, Many areas 6% isn't a "full commision" and at higher price ranges it really becomes more common to see much lower than that for any agent. Don't act like there is a standard in commisions as there isn't and to suggest that there is treds on illegal.

Faith if your husband has his license why hasn't he listed it with a co-op that is 1/2% higher than the average. A co-op that is higher than the average is a great way to bring in more buyers agents. Price the home at an area that will get you close to breaking even as possible and get out asap. No matter what you need your home listed in the MLS so you have access to all of the buyers.

BTW, It is always hard to sell a home while the builder is still there, why would they buy your home when they can have a brand new one that they pick all the cabinets, colors,....

[jessiesc]

Jessica, Many areas 6% isn't a "full commision" and at higher price ranges it really becomes more common to see much lower than that for any agent. Don't act like there is a standard in commisions as there isn't and to suggest that there is treds on illegal.

Hmm, I don't see where I suggested or acted like there was a standard in commissions nor do i see where I suggested there was a trend, kensmithkw.

The use of the term "Full commission" perhaps was misconstrued. It was meant to be construed as "offer what the Top Producer wants".

Let's try not to flame shall we?

Oh and by the way, it's Jessie not Jessica

I merely stated, as the original thread implied desperation, that raising the commission was a suggestion and gave reasonings as to why.

I am also aware that higher priced properties typically see lower commission rates.

However, this does not appear to be a typical situation, does it.
Again, there is desperation and urgency in the original thread.

This does not appear to be someone who has time to wait for their property to sell. They need assistance and they need it now.

They need an out and they need it now before they damage themselves.

Again, my opinion