Would they take a rework/cramdown + DEFERRED 2nd mortage?

[Tom_Mi]

The bank is mulling over my short offers on 2 4-unit apartments (neighboring properties).
The offers are about 55k short on each one...110k deficiency total.
They're not excited about it..but know I'll file ch7 if they don't take it.
1st loan=133k
2nd loan=33k.



But....I just had another idea:

• After a year having gone by, I know that the buildings each NET (after maint/expenses/utilities) 1100.
• The short sale offers on the table are 105k. That's all they'd get.
• What if I offer: Rework to 1 loan of 110k, 6% 40yr term (pmt would fit within the 1,100 net)
• Add a DEFERRED mortgage of say, 30k
  -No interest accrues, becomes payable on sale of property.

I know that like all loans they're only servicing this for some investor somewhere.
Might they bite on this, or am I nuts?


..or am I nuts to suggest it in the first place?

[HHM]

What is the upside for you?

Do you really think these buildings will actually appreciate such that you could sell them in the future for a profit, what about maintenance and refitting, do you have any money left over after paying the mortgage. This is a business, if you are not making ANY money (i.e. profit), dump'em and move on.

[justbroke]

I agree with HHM wholeheartedly. While I didn't have any multi-unit dwellings, I do have a rental property and primary residence.

My initial plan was to surrender the primary residence (which I had abandoned) and keep the rental property. Now, I'm having issues. My renter isn't paying, that money is due to the Trustee, and i had to issue a Quit/Vacate order on them.

Now, I have no tenant (paying tenant), it will be 30 days before I get one in there. I have extra-ordinary expense to pay to get a tenant in there, and for less than the PITI on the property.

So, I changed my mind last week. I'm now flipping on the idea. I don't see how you can maintain rental property and your sanity in a Chapter 13. There's no wiggle room for expenses at all. I would need to put $2K into the place to make it rent-ready. The Trustee doesn't want to hear that.

I ordered an appraisal on my primary residence and will strip the 2nd lien and convert the 2nd mortgage into an unsecured one. (This was served on 4 people yesterday via USPS, certified, return receipt.)

I just can't do the rental property thing.