You Can Cut Your Investment Losses And Save Your Credit Rating
When it comes to investment properties, they have to be treated much like any other property that you have purchased, including the home that you're living in. In other words, if they go into foreclosure it's going to go on your credit, just like any other property would. With that in mind, you have to keep your investment properties up to date or liquidate them so that you don't damage your credit, and in this market it can be very hard to determine whether you can get a property rented or sold before you get behind on your payments, making the investment property issue a balancing act.
Investment properties were very popular back when the housing market was booming, and everyone was buying and selling them. Flipping them and reselling them was popular, and so was renting them out for the income. There were waiting lists and houses that went to the highest bidder because people were so eager for them.
Now there are properties all over the place that no one seems to want and the people who have them as investment properties can hardly give them away. In Detroit and some of the other hardest-hit cities there are properties that aren't going for tens of thousands or even for thousands of dollars, but that are going for only a few hundred dollars, instead. People who were lucky and bought and sold when the market was good made a lot of money, but there were people who got stuck with a lot of properties and it left them wondering: what were they supposed to do next?
If you're in that 'I don't know what to do with this investment property' situation, you're definitely not alone, and you'll find plenty of other people to commiserate with, most of whom have lost a lot of money to an uncertain and very volatile market. You could also be one of the people for whom things have gone from bad to worse and you're finding that your investment property is costing you so much that you're getting behind on the payments and can't make them for much longer. If that's where you are, you have two choices: you can try to stick it out because the market is showing some slow signs of improvement or you can try to sell the property and get out from under it before it totally destroys your credit rating.
When it comes to your credit rating there might have already been damage done, but lessening that damage by stopping it from continuing will be helpful later on when you're looking to be approved for credit for something else, so it might be wise to take steps to protect the credit rating that you have left. Cutting your losses is the next best thing to completely avoiding any damages that would otherwise be taking place, and doing damage control by clearing out investment properties is becoming more common today with so many foreclosures out there. When you want to avoid foreclosure, though, you usually have to get rid of your properties quickly, and you can do that through a short sale, a deed in lieu of foreclosure or other methods if your bank agrees - so find out what you owe on these properties, what they're worth, and what your bank is willing to do to help you.
One of the smartest things that you can do with financial difficulties that involve paying for an investment property (or properties) is to talk with your lender and be honest and upfront about the issues that you're facing. It's best to talk with your lender before you get behind on your payments but a lot of people are afraid to do this and they are very uncomfortable and embarrassed about admitting that they can't pay their bills - and they keep expecting and hoping that things will turn around. You don't want to let those things ruin your credit rating and your financial future, though, so talk to your bank or lender right away, at the first sign of any upcoming problems.
If you're up front about things, a lender that's handling your investment properties will be more likely to work with you and try to help you renegotiate your way to a better rate, a longer term, or something that can help you continue your investment. If it becomes clear that you won't be able to keep the property, though, talk to your bank about the options you have. You really want to keep a foreclosure off of your credit if at all possible, so check out the possible options that you have and pick the one that's the least damaging to your credit rating. - 23305
Investment properties were very popular back when the housing market was booming, and everyone was buying and selling them. Flipping them and reselling them was popular, and so was renting them out for the income. There were waiting lists and houses that went to the highest bidder because people were so eager for them.
Now there are properties all over the place that no one seems to want and the people who have them as investment properties can hardly give them away. In Detroit and some of the other hardest-hit cities there are properties that aren't going for tens of thousands or even for thousands of dollars, but that are going for only a few hundred dollars, instead. People who were lucky and bought and sold when the market was good made a lot of money, but there were people who got stuck with a lot of properties and it left them wondering: what were they supposed to do next?
If you're in that 'I don't know what to do with this investment property' situation, you're definitely not alone, and you'll find plenty of other people to commiserate with, most of whom have lost a lot of money to an uncertain and very volatile market. You could also be one of the people for whom things have gone from bad to worse and you're finding that your investment property is costing you so much that you're getting behind on the payments and can't make them for much longer. If that's where you are, you have two choices: you can try to stick it out because the market is showing some slow signs of improvement or you can try to sell the property and get out from under it before it totally destroys your credit rating.
When it comes to your credit rating there might have already been damage done, but lessening that damage by stopping it from continuing will be helpful later on when you're looking to be approved for credit for something else, so it might be wise to take steps to protect the credit rating that you have left. Cutting your losses is the next best thing to completely avoiding any damages that would otherwise be taking place, and doing damage control by clearing out investment properties is becoming more common today with so many foreclosures out there. When you want to avoid foreclosure, though, you usually have to get rid of your properties quickly, and you can do that through a short sale, a deed in lieu of foreclosure or other methods if your bank agrees - so find out what you owe on these properties, what they're worth, and what your bank is willing to do to help you.
One of the smartest things that you can do with financial difficulties that involve paying for an investment property (or properties) is to talk with your lender and be honest and upfront about the issues that you're facing. It's best to talk with your lender before you get behind on your payments but a lot of people are afraid to do this and they are very uncomfortable and embarrassed about admitting that they can't pay their bills - and they keep expecting and hoping that things will turn around. You don't want to let those things ruin your credit rating and your financial future, though, so talk to your bank or lender right away, at the first sign of any upcoming problems.
If you're up front about things, a lender that's handling your investment properties will be more likely to work with you and try to help you renegotiate your way to a better rate, a longer term, or something that can help you continue your investment. If it becomes clear that you won't be able to keep the property, though, talk to your bank about the options you have. You really want to keep a foreclosure off of your credit if at all possible, so check out the possible options that you have and pick the one that's the least damaging to your credit rating. - 23305
posted by Mr. Forex at
1:30 AM
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