Hi greetings to you all. This is my first time here, so please bare with me..Out of desperation, trying to scramble for help, I was lead to this site.
My husband and I, are desperate of help for our finances..
I am a nurse and he is a financial adviser,been married for 13 years. We are both very active in our church and we have a strong desire to help people to be financially educated about how to manage their finances in order to achieve financial freedom and to teach them to be good givers to either charity of their choice eventually..('how ironic and here we are in this mess')..
First we started on playing the stock market.That was good until 911 happened. So we switched gears to real estate buying a fixer upper homes and sell them after with of course few chosen partners who are relatives and close friends, that was true joy, the business boomed and some of our partners started to have their own same business..I thought that was mission slowly coming together...Then we thought we will try buying rental property a multi family apartment complex ( without any management experience).Little did we know that the real estate boom has reached it's peak and the bubble burst and we were in the middle of it...like the world is crumbling down..Since we bought an as is property,rehabs and repair, as well as eviction fees( to lawyers) and maintenance fee, not to mention I had to go on part time to manage the 20 unit myself so to cut management fees.And every single weekend when we're not working at our regular job, my husband and I work there at the apartment from sun up to sun down, especially when there were times that the sewer backs up and we had to clean up after the plumber unclogged the sewer..So anyway that's just the tip of the iceberg.Now through these come with expenses, bills and taxes and insurance we cannot keep up paying.Despite of living frugally, it's just expenses are piling up left and right my husband would stay up late at night until his eyes crossed just to make sure we won't be late on the mountain of bills that seemed to be coming faster than we could pay..Until we got this notice that the bank that we have our mortgage of the apartment gave us the notice to redo our loan for a higher interest since we were considered us 'high risk' to the bank since our apartment does not show 'cashflow' and that we also should redo the loan every 6 months of course tact in there the fees for every time we will redo the loan...my husband and I just reached to the of our rope and said we should just let it go...we tried to negotiate the bank and all they see is the dollar sign and not our situation. And after over 5years we said we did everything to save it and now it's time to let go...and so we did...now we are in the early process of foreclosure,..we have not turn in the keys we're waiting for the bank's lawyer to tell us where to drop off the apartment keys and tenant leases...Now my questions are if the bank sells the property thru auction or whatever and will not get whatever we owe on it ( even losing our down payment and equity on it) will the bank sue us for the remainder? right now we owe $760,000 roughly on it...and should we declare bankruptcy because we know we're not gonna be able to pay anymore bills along with our credit cards and personal loans that we have incurred during the time we had the apartment..I could go on and on...but I will stop here now..this is really depressing!..and looking we could have just better off working and saving money for ourselves.. But we thought we should try to take advantage of what we thought was a good opportunity and at the same time help others..but we failed and we failed miserably...please help us in any way you can, and we'd be forever grateful. God bless...
faith -
Unfortunately, many members of the business community have found themselves in this predicament. In regards to your specific situation and the foreclosure, you'll need to seek legal consultation. A lawyer or attorney will best be able to assess your situation and help you come up with the best solution.
You have several options when looking for new financing opportunities. While the government does not generally give small business grants to for-profit businesses, they do guarantee loans. For more information on these programs, as well as alternative financing programs, check out the Small Business Cents blog I Need Money - Where do I get it?Loans for Business Owners with Poor Credit is another resource from the Small Business Cents blog that details alternative financing opportunities for those people that have struggled with paying their bills or maintaining their credit. Good luck with your situation and we hope you'll continue to use the community as a resource and a forum to share your progress.
I read somewhere on the Internet the other day that the Government and the people will own nothing and the banks will own everything. I know that's a cynical thought; however, it do imply that small business owners will have to become more creative in financing their business ideas. Too me, a loan is just another choice and may not be the best one depending on your situation!
faith -
Unfortunately, many members of the business community have found themselves in this predicament. In regards to your specific situation and the foreclosure, you'll need to seek legal consultation. A lawyer or attorney will best be able to assess your situation and help you come up with the best solution.
You have several options when looking for new financing opportunities. While the government does not generally give small business grants to for-profit businesses, they do guarantee loans. For more information on these programs, as well as alternative financing programs, check out the Small Business Cents blog I Need Money - Where do I get it?Loans for Business Owners with Poor Credit is another resource from the Small Business Cents blog that details alternative financing opportunities for those people that have struggled with paying their bills or maintaining their credit. Good luck with your situation and we hope you'll continue to use the community as a resource and a forum to share your progress.
Not sure why you had to let it go - there are mandates that most lenders have to work with borrowers to restructure loans - you should have pushed harder to get them to work with you.
You are right - banks only care about the financial side.
Banks will sell off your property - if they can thus they may do it at a fire sale - then use those funds to 1) re-coop their fees for foreclosure and selling, then their interest - then their principal. If there is anything left over - it will go to you. If you still owe - they will come after you based on what your loan docs state. Hopefully, they will not push it very hard as they are overwhelmed with these types of loans and do not have the resources to fully pursue them all. But, it will hurt you credit and they may send it to collections.
Bankruptcy is a way out but it is also a very hard way the will hurt you for years to come. There are also credit services out there as part of the government mandate that are supposed to help people just like you - a quick web search should lead to several companies - just do your homework on these companies to make sure they don't take advantage of you as well.
Message Edited by phanio on 11-02-2009 06:28 PM
Not sure why you had to let it go - there are mandates that most lenders have to work with borrowers to restructure loans - you should have pushed harder to get them to work with you.
You are right - banks only care about the financial side.
Banks will sell off your property - if they can thus they may do it at a fire sale - then use those funds to 1) re-coop their fees for foreclosure and selling, then their interest - then their principal. If there is anything left over - it will go to you. If you still owe - they will come after you based on what your loan docs state. Hopefully, they will not push it very hard as they are overwhelmed with these types of loans and do not have the resources to fully pursue them all. But, it will hurt you credit and they may send it to collections.
Bankruptcy is a way out but it is also a very hard way the will hurt you for years to come. There are also credit services out there as part of the government mandate that are supposed to help people just like you - a quick web search should lead to several companies - just do your homework on these companies to make sure they don't take advantage of you as well.
Message Edited by phanio on 11-02-2009 06:28 PM
I understand you're wondering why we let it go...it was not just an overnight decision, we fought with the bank to get to our terms where it would be sensible and wise business wise in which case that the bank would still get their money...all we ask it leave the terms the way it was and to give us at least 3-5 years fixed for 20-25 years...and they wont because our loan was considered high risk because they don't see any cashflow...well for over 5 years all we did was fixing rehabing,and updating some of the rooms and old appliances in there and we're close to the point where we can take a little break and maybe do just a little maintenance here and there and now they demanded to raise our interest rate (when we're barely making it but we never miss nor late with our payment) and to renew the loan every 6 months..and that was just the straw the breaks the camel's back...after all these hard works and sacrifice...and you know what? maybe it's God's will that our time and our hearts will have to be focused on things that He wants us to do..although we thought He gave that to us before but maybe He's reassigning us to other tasks...It really hurts us financially to where we might really have to be forced into bankruptcy, but you know what? God knows where our money goes and I think that's all that matters to us...all these are material things around us they will come and go and none of these we can take when we die... I just hope that things will work out to where our tenants will get treated the way we treated them, they deserve that...thanks for your advice and yes we hope things will work out and that God will get the most glory out of this circumstances we are going thru...God bless you.
I understand you're wondering why we let it go...it was not just an overnight decision, we fought with the bank to get to our terms where it would be sensible and wise business wise in which case that the bank would still get their money...all we ask it leave the terms the way it was and to give us at least 3-5 years fixed for 20-25 years...and they wont because our loan was considered high risk because they don't see any cashflow...well for over 5 years all we did was fixing rehabing,and updating some of the rooms and old appliances in there and we're close to the point where we can take a little break and maybe do just a little maintenance here and there and now they demanded to raise our interest rate (when we're barely making it but we never miss nor late with our payment) and to renew the loan every 6 months..and that was just the straw the breaks the camel's back...after all these hard works and sacrifice...and you know what? maybe it's God's will that our time and our hearts will have to be focused on things that He wants us to do..although we thought He gave that to us before but maybe He's reassigning us to other tasks...It really hurts us financially to where we might really have to be forced into bankruptcy, but you know what? God knows where our money goes and I think that's all that matters to us...all these are material things around us they will come and go and none of these we can take when we die... I just hope that things will work out to where our tenants will get treated the way we treated them, they deserve that...thanks for your advice and yes we hope things will work out and that God will get the most glory out of this circumstances we are going thru...God bless you.
they really are, but we're hoping that for another door to open for us as this door is closing in on us...thanks for your concern...we really appreciate it...it helps to know that there are people out there like you guys who took the time to read my email and reply your thoughts on it...thank you....
JamieD | Former Moderator | 1/18/2011 - 8:45 am
984profits | Creator | 4/26/2010 - 2:44 am
JamieD | Former Moderator | 3/23/2010 - 5:17 pm
phanio | Contributor | 11/2/2009 - 7:27 pm
jaymar2 | Performer | 11/8/2009 - 2:08 pm
phanio | Contributor | 3/23/2010 - 5:17 pm
jaymar2 | Performer | 3/23/2010 - 5:17 pm
faith | Performer | 11/9/2009 - 10:10 am
faith | Performer | 3/23/2010 - 5:17 pm
faith | Performer | 11/9/2009 - 10:13 am
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