Mortgage Forum

Joel Fraser

Hi folks,if for no other reason it is nice to company, so thanks for any help or ideas you have in advance. Early 2004 my family and I had move to florida for the job. We could see real estate was appreciating. After we moved in our house, we had an opportunity to purchase another smaller house with a friend as an investment(watch what you ask for). I used the kids college money, thinking we would sell at any time. The market really hadn't gone up much at all at the time, we were way ahead of the curve. SO I thought. The friend and I put up equal amounts on the house 15K(20% down payment). We rented the house out with a monthly shortfall of about 1000 that my partner and I payed out of pocket each paying 500. The market went way up. we didn't sell the investment house. The market went way....way ...down. Banks have been selling or short selling houses all around us. House are literally 25%-50% off the 2004 numbers. Banks have been short selling and people can't even move now. Our partner had to move North for their job, and since he couldn't sell his house, he just stopped paying on the rental leaving me to pay extra 1000 in my budget. I decided to sell the house to get out of it. I cleaned it up nicely, I have been paying the utilities and HOA and taxes, but I stopped on the mortgage because I couldn't afford 2800 per month. PS I found a renter for my partners house....hoping for good karma. I called the bank(Citimortgage) in advance, before I missed a payment to tell them I was going to try and sell it. They told me to not call until I miss payments. I have now missed 1.5 payments. I can't sell the house anywhere close to what I paid for it, heck I can't get 40K less than what I owe. The house is in a plan or subdivission where most houses sit on a lake or make shift canal. This rental house is not. People who see the house don't want it because it doesn't sit on water. The sell price seems to be about 70K less than what I owe. I have invested 60K in this house. It has eaten my savings and my kids college money. My company has been laying off people. I have been selling assets to pay, but I can't go any further now. Citimortgage is saying that if they have to do a short sell, I will get stuck with promisory note for the difference between what is owed and the sell price. That was a shocker. Not only did I help them absorb much of the loss now they want to stick me with a note. WHat hapened to the 1099 process? Additiontally my note is held by Fannie Mae, how can Citimortgage speak for Fannie Mae? Yestreday we recvd a short sell offer, about 50% of what we owe. I want to take it, but I don't want a promisory note, I would rather get a 1099. None of this makes sense. I guess I would rather go to foreclosue and battle it that way, I wil lhave to get an attorney. This is just ridiculous. I am a prime example of someone who plays by the rules and pays my portion, now that everything goes south, I have no help. This was not a sub prime. It seems short sell is best, but it doesn't appear the bank thanks so.