How do I give back investment property with two mortgages?

Deal Score0

I have an investment property that my renters are paying me very slow. I have personal financial problems and I am already 3 months down on both mortgages. I would like to give the deed back in lieu of foreclosure, however I’m discovering that Bank of America will not accept if a second (Greentree) is still on property. The house is up for sale and my renters have until November to get out (the lease is up). It has been a true loss and I just don’t want the house anymore and the headaches that has come with it. I need some direction as to any companies out there to review my legal documents to find loop holes to the mortgage contracts that I signed up back 3 years ago. This was purchase money which I did an ARM subprime loan at 100% financing with two loans. Isn’t there someone who could address a loop hole to get me out of this mess?

2 Comments
  1. Reply
    glenn
    April 29, 2011 at 10:20 pm

    When you say “give back” it makes it sound as if the banks sold the property to you. That was probably not true- they very likely allowed you to borrow the money so that you could buy these properties from someone else.

    They specifically write these loan documents to hold you to these agreements even if things get tough for you. They do not want the property, they want their money.

    Contact a good local real estate agent that works with short sales a lot. Have that agent talk with both your loan companies about selling the house under those conditions.

    It will be complicated, frustrating and time consuming. But it will be even worse if they foreclose.

    And you already know they probably won’t accept a deed in lieu of foreclosure.

  2. Reply
    Expert Realtor
    April 29, 2011 at 11:14 pm

    Honey, I can tell you now that there are no loop holes.

    ARM…”A” stands for ADJUSTABLE…you signed papers at closing knowing that your interest rate was not guaranteed and subject to change, in fact, your mortgage note actually states how high it can go.

    You signed it.

    100% financing loans that are in accordance with the appraisal are 100% legal and always have been.

    You made the CHOICE of purchasing a house where you couldn’t pay the rent in the fact your renters didn’t….not the bank’s problem.

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