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Underwater and not owned by Fannie/Freddie

I have a 4-family I bought with an 80/20 then adding a 3rd mort.,the equity increase, in the year I owned it(repairs). Total owed for all 3 is roughly 385k (300k 1st, 65k 2nd, 20k 3rd. All fixed APR).
Current value about 275k approx (roughly).

I have had many issues renting it out consistently (live on premise as well) and took the 3rd to help rehab to rent easier. Partly worked but not nearly enough.

Now payments have jumped on the 1st loan from 2k to 2.43k due to escrow starting since they decided to pay taxes I had been looking to dispute. I lost so it doesn't matter now, but the payment jumped just the same.

I have difficulty paying the new amount and was able to handle the prior amount even when it wasn't fully occupied, but now I will be struggling at best.
I don't see how I can make headway paying down bills that I accrued to rehab when I can't rent it enough and the payment jumped so much.

Loans aren't owned by Fannie/Freddie. I don't think I qualify for the Obama plan.
I want to stay current on all bills and was hoping to try to work a mod. with the lenders, but that doesn't look promising, esp where I am current and not covered by the Obama plan.

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April 29 2009 - Lawrence
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Answers (4)

Take the time to fill out what they need, get it to them.  You won't know anything unless you try. 

If you can make the payments, make them.  Don't skip on payments and ruin you credit.

In the meantime, contact HOPE and explain everything to them.
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April 29 2009
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So should I stop paying them for leverage or just pay on and hope they might be nice?
It just seems like they couldn't care and will do a paperwork shuffle.
I've talked to them twice but have not done the paperwork yet.
Part of the problem is trying to figure out if I should work with them, or try HOPE counseling first, or get a lawyer, or what.
Yes I am lost.
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April 29 2009
How many times have you contacted your lender?  One or two phone calls will most likely not get anything accomplished.  Keep on them for a loan mod.  You'll most likely only be able to get a loan mod on the first, but you can work on your 2nd and 3rd lender also.
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April 29 2009
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Cont.
Bankruptcy is also not likely a good option, it just seems like that is farther down the road and  extreme.

Should I stop paying the mortgages and see if that will get the lenders to the table, or am I screwing my credit and ability to qualify for programs they might have as well?

Should I pay them and struggle, staying current, trying to work a modification with them and months later if they don't help, then stop paying?

I am 50/50 on keeping the house, but since it is roughly equal to renting when it is fully occupied it doesn't seem worth throwing it away.
Yet I am keenly aware that it is not likely to sell in my town with the highest forclosures in the state (MA).
Any input is GREATLY appreciated!
I've thought about this for a few months now and am no closer to a decision than when I started.
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April 29 2009
 
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