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How can I sell investment properties if I will probably get offered less than I owe on them?
By Tom | November 16, 2006
Brian E asked:
I have 5 duplexes that I would like to sell. I might not get what I owe on them. Is there a way to sell them for less than I owe without going to foreclosure. I am not currently behind on the mortgages, looking for options.
Floyd
Topics: investment properties | 2 Comments »
November 17th, 2006 at 8:39 am
Right now our economy is headed toward recession (or in recession depending on who you talk to.) This is not a good time to be selling any investments. If I were you I would hold onto the duplexes…. I assume you are renting them out and making a monthly income off them…. if not start renting them out because all the people losing their homes are looking for rentals… and wait it out until there is an upturn in the economy. According to past economic cycles, it should only take a year or two and if you can maintain a rental income it would be worth holding onto so you can make money off these properties when the economy gets better.
November 18th, 2006 at 6:22 am
Sure, you can sell them for less than you owe without going through foreclosure. But, at the closing of escrow you will have to make up any deficiency out of your own pocket or else the lender will not allow the sale.