Trying to walk away from money pit in GA

KMNRYC

LoanSafe Member
May 17, 2013
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We're settling CC's and getting rid of our money pit rental in GA this year! Woo Hoo!

Here is my loan situation on my rental property:

Purchase Price - $155,000
Original Loan 80/20 interest only- $125,000 Countrywide (now Green Tree) / $30,000 HELOC countrywide (now SLS)
We still owe almost every original dollar borrowed because of the interest only
Fair Market Value – $120,000 If we're lucky

I stopped paying as of April 1st. Got a Notice of Default in the mail today. It has language that states that if I do not cure the default in 30 days maturity will accelerate.

We fully intend to walk away but we're looking to prolong the FC as much as possible to collect the rent. DH is active duty military, currently deployed. Is there a way to use that to our advantage? I should add my name is not on either loan or the deed.

We have little in the way of assets as our current home is also about $30,000 underwater and after that it's just debt, the car (has a loan) motorcycle (also has a loan) and a few hundred dollars here and there for an old IRA and kids' college accounts. Nothing to worry about them coming after, correct? The rent being collected is being spent on necessities or pulled out via ATM and stuffed under the mattress so to speak.

Where do I go from here - whats' next best to stall. I have a uniform borrower assistance form packet they sent me, but it requires ALL of my info and from what I understand I shouldn't be giving them any info. I'm sure Green tree is pissed they are calling DH's phone and it's been shut off!

Will they even communicate with me? I have a special power of Attorney specifically for this property, I just have to let them see it I suppose.

I've read the HAMPster threads - but find it all so over my head since I'm just starting out.

Thanks for any advice!!
 

GoingBrokeFast

LoanSafe Member
Jan 29, 2012
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I am in a similar situation not being on deeds and notes to money pit investment properties. You are in the clear yourself. You need to protect your individual property and credit. Your husband has the exposure. In most states there is what is called a soldiers and sailors act or now called service member's act to protect members of the military in situations like this. It can give your husband time and breathing space. Check it out on line or through a lawyer. There may be a free consult available to you either through the local bar association or a military/ veterans group.
 

KMNRYC

LoanSafe Member
May 17, 2013
3
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More help....?

Green Tree advised SCRA doesn't apply because we don't occupy the property.
Today they said I need to make an effort to make a payment or they will be sending it straight to the foreclosure department on Monday. I haven't even gotten the mod application filled out yet!! Why are they so antsy?!?! It sounded like everyone on here bought time, and the banks took forever....
In need of serious experienced advice here folks!!