“Losing $700 Per Month is Not Fun”

“Losing $700 Per Month is Not Fun”

 

 

Our bank gave me your contact information and he thought you might be able to help.

 

I own a condo that is not worth nearly what I still owe, and my property taxes recently going up by over 2x's what they used to be...we're in real trouble with the property. I'm lucky enough to have continuous tenants but the rent I can charge simply doesn't cover what I'm paying out anymore. Currently my net loss each month is nearly $700.

 

It gets worse; the current mortgage is $163,000 so I decided to have an appraiser do a comp check for me to make sure a refinance was possible. Unfortunately they’re not even close to refinancing as the value is estimated at half of the current debt.

 

I wish I could help but a refinance at this point is not possible. Not fun to have to tell a client that I can’t help them and I’m not even sure how much longer she will have to wait. NOT FUN!

 

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Joe Petrowsky, NMLS #6869

Right Trac Financial Group, Inc. NMLS #2709

110 Main St.

Manchester, Ct. 06042

Office: 860 647-7701 x116

Fax: 860 647-8940

Cell: 860 836-9294

Email: joe@righttracfg.com

www.righttracfg.com

www.joepetrowsky.com

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Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.

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Comment balloon 20 commentsJoe Petrowsky • June 27 2016 06:37AM

Comments

No, this is not a good situation, Joe.  She has very limited choices.

Posted by Gabe Sanders, Stuart Florida Real Estate (Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales) over 1 year ago

Unfortunately , there are quite a few people in this situation. It is a tough situation.

Posted by Peter Mohylsky, Your Bucket List Broker in Destin, Fl.. (BETTER HOMES AND GARDENS REAL ESTATE) over 1 year ago

Referring a well qualified and experienced short sale agent appears to be the best answer here Joe Petrowsky 

Posted by Sally K. & David L. Hanson, WI Realtors - Luxury - Divorce - Short Sale (Keller Williams 414-525-0563) over 1 year ago

Maybe it's worth it to do a short sale and/or try to grieve taxes.

Posted by Debbie Gartner, The Flooring Girl & Blog Stylist -Dynamo Marketers (The Flooring Girl) over 1 year ago

Good morning Joe. So sad. I think a short sale maybe the only answer.

Posted by Sheila Anderson, The Real Estate Whisperer Who Listens 732-715-1133 (Referral Group Incorporated) over 1 year ago

It's a sad situation and it's hard to explain to someone what their property may now be worth...

Posted by Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400, Long Island Condo & Home Sale Specialists (The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803) over 1 year ago

Good morning Joe! Not a good situation by any means. Enjoy your day!

Posted by Wayne Martin, Real Estate Broker (Wayne M Martin) over 1 year ago

This is a sad story to share but a situation that is faced by many families.

Posted by Roy Kelley, Roy and Dolores Kelley Photographs (Realty Group Referrals) over 1 year ago

Hi Joe Petrowsky I disagree with those commenters that say "short sale." If this owner can carry this property she has money. The BANK isn't going to approve a short sale when they smell money.

Probably the ONLY option is too sell and eat the loss. Holding on (and losing money every mointh) will NEVER make sense. The INCREASE IN VALUE EACH MONTH IS UNDOUBTEDLY LESS THAN THE NEGATIVE CASHFLOW.

Bill Roberts

Bill Roberts

Posted by Bill Roberts, "Baby Boomer" Retirement Planner (Brooks and Dunphy Real Estate) over 1 year ago

Joe it is not often we are not able to help, but the times we can't create a helpless frustrating feeling.

Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages) over 1 year ago

Hi Joe --- we are mere messengers but the delivery is not always easy.   

Posted by Michael Jacobs, Los Angeles Pasadena Area Real Estate 818.516.4393 (Coldwell Banker Residential Brokerage) over 1 year ago

That is sad news and hope the value goes up so they can a least break even.

Posted by Debbie Reynolds, Your Dedicated Clarksville TN Real Estate Agent (Platinum Properties) over 1 year ago

OUCH and double Ouch.  That one hurts. Maybe a short sale is an option ???

Posted by Kathleen Daniels, San Jose Homes for Sale - Probate Broker (KD Realty - 408.972.1822) over 1 year ago

Joe,

Wow, too bad you could not help this person out, and I know you did your best.  A

Posted by Ron and Alexandra Seigel, Luxury Real Estate Branding and Marketing (Napa Consultants) over 1 year ago

That's really a shame, but there's nothing you can do about it. I know it stinks to have to deliver this bad news. 

Posted by Debbie Laity, Your Real Estate Resource for Delta County, CO (Cedaredge Land Company) over 1 year ago

Hi Joe:  That is not a fun situation to be in, for sure. In that scenario, hopefully she can offset it as a loss on her taxes. Here, I run into a lot of owners that cannot sell for what they paid for their property but at least they are having a positive cash flow with tenants. Unfortunately, it may be years before they can even sell their place for a small loss. 

Posted by Janice Hope Zaltman LEED AP (Keller Williams Partners) over 1 year ago

Joe

The property owner is stuck between the rock and hard place with the only option being a tough one.

Good luck and success.

Lou Ludwig

Posted by Lou Ludwig, Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC (Ludwig & Associates) over 1 year ago

A very scary situation Joe, one day I am sure you can help.

Posted by Noah Seidenberg, Chicagoland and Suburbs (800) 858-7917 (Coldwell Banker) over 1 year ago

Joe

That's a pretty tough situation to be in. But all you can do is be completely honest, as you were. She may not like what you shared but my guess is she respected your honesty. Perhaps things will shift in a positive direction before too long.

Jeff

Posted by Jeff Dowler, The Southern California Relocation Dude - Carlsbad (Solutions Real Estate ) over 1 year ago

Joe so many times lately I have to tell my buyers when they missed out on a property, "please do not kill the messenger, but I have bad news", Endre

Posted by Endre Barath, Jr., Realtor - Los Angeles Home Sales 310.486.1002 (Berkshire Hathaway HomeServices) over 1 year ago

Participate