Hi,

I hope this is the correct form to post in. Excuse me if it isn't, but I am looking for advice on how to proceed with the mortgage loan I assumed after my Mother's death.

My Mom bought two properties on one mortgage which has three homes. The large home being where I have lived the last 6 years and also has a garage apartment attached.

The problem is because of my unique circumstances. (Oh heck, I may as well disclose them since it's no secret.) Because of the drug charges I received on my criminal history 7 years ago, and living near Houston, Texas, I have not been able to find a job in many years. I have a degree in electronic engineering technology, but have been out of the field since 1997, so it seems hopeless finding a job in my field of study. Especially in Houston, since it is not an electronic manufacturing city.

Anyway, I assumed the mortgage and used up my life insurance benefit living here. The properties come with the responsibility of paying for all the water used in every residence because it is all connected. I also have the responsibility of paying for cable, natural gas, and electric for the guard lights and the garage apartment.

What it all comes down to is: I am broke now, and I am 3 months behind on mortgage.

Last week, I started working for a KIA car dealership. I have experience selling furniture and shoes, and I used to own a small gift shop in Florida, so I'm not completely in the dark about sales and commission only type jobs. But, here, in one week I realize, the salesmen are snakes. There is no rotation for ups. One guy steadily monitors the elead crm and takes all the INTERNET ups right from the start. I'm not saying I'm lazy or I'm not good with people because I am very good with customers and I am a self starter. I just don't like the seemingly unethical way the go about getting customers. They can't wait to attack people as soon as they drive into the parking lot, and to me that is not an ethical way to earn someone's business.

My mortgage company has worked with me these past several months to see if they can approve a loan modification for me, but without affordability this is not going to happen. Although I have a job now, there is no way to tell if I'm going to make any money doing this. I didn't mention I was a woman. I'm sure that is going to be a variable in how much money I can make selling KIA cars.

So, what I really need advice on is: Should I sell the properties and try to earn my equity in the homes before losing them in a foreclosure? Should I keep working at selling cars and try to catch up on my past due and late fee amounts to the mortgage company before they foreclose me? What if they foreclose me while I am working and trying to sell cars so I can catch up?

For 10 months last year, I used the rental income to play poker, and was able to keep up-to-date on mortgage payments and bills. Then, I started running bad, or playing bad for several reasons. One being where I live. This is Texas and all games are illegal. People who run games and deal games make up their own rules. The game isn't played the same way it is played in the casino. The casino makes playing poker a lot more fair. Especially when it comes to rakes. The rakes here are impossible.

I have been playing, studying and trying to find leaks in my game for 5 years now. I invested a lot of my inheritance money working on my game, and I am pretty certain what all my leaks are. Unfortunately, sometimes, I make the same mistakes because I am either too tired to be playing, or I am too emotional about something in my life.

Should I put the property up for sale, try to earn my equity, and move to a place where playing poker is legal? Should I use my equity as my bankroll? What if I keep making the same mistakes in my game and go completely broke.

By the way, I've never been married or have had any kids. I'm almost 49, and I like being independent. I don't use my sex to influence people. I never have and I never will. I just can't do it.

Please post replies. I will be happy to hear all your advice, comments, and criticism (I know there is always criticism in this game.)

Thanks

You need to separate your lifestyle issues from your mortgage issues.

Forget about poker and Kia for the moment and focus on the only thing that currently matters, ie the foreclosure....

What is your monthly rental property income?
What is your monthly rental property expense?

Lot of smart people in this forum who can help you with the financial workouts but only you can answer the lifestyle noise you posted.

Thank you for your post. I am deficit each month after collecting rent and paying expenses. I'm not sure what you mean about lifestyle. I don't have a life. I don't do what I did to have gotten in trouble in the past. I don't drink, I don't do drugs, and I'm not in a relationship. Just in case people think I have anyone who can help me. I don't. And I won't get involved with people just for them to help me out. I'm on my own. I always will be. That's the way I roll. I've been through the whole expense vs. income thing. I just started this job a week ago after not being able to get a job for 7 years because of what I was charged and sentenced for. I'm not proud. I'm ashamed of myself. But it happened and it's there. It's not going anywhere. It cannot be removed or expunged. I checked with an attorney.

Don't beat yourself up about the past, look forward.

Baby steps:

How much rent do you get per month?
What is you mortgage payment?

How much equity is in these properties?

ie. What could you reasonably sell them for vs. what amount is owed?

What rate is your mortgage currently at and for how long?

With all due respect, and only since you brought up your personal issues here, I really think you should think about quitting the dream of playing poker professionally and not having to work a real job. Once you find regular income somewhere and focus on that for a bit, play all the poker you want recreationaly and ENJOY it.

But anyway, you need to separate the emotion with the business at hand, and rid of all your personal things out of this and focus on the problem only.

This too will pass as they say....best of luck-

P.

Have you talked to a Realtor? What are the properties worth? What is their estimated value today right now? Tax assessed value?

Have you looked into declaring bankruptcy? Bankruptcy in our society is basically a financial reset button. If you can do it a certain way you can shelter your residence from creditors and get back on your feet financially while still having a place to live.

DO NOT let yourself get foreclosed on. Get another job. DO NOT get another commission based job.

Give up poker for a while. At least give it up as your primary source of income. Just tell yourself your not a poker player until you get your "house" in order.

How much equity do you have in these properties? Look into a CASH-OUT refinance immediately. Do this before you get further behind.

Get a roommate, hell get 2.

Just a few thoughts
G'luck!

-Hiway

-Hiway

That is really great advice. I have not looked into a cash-out option. No one has mentioned it.

I have equity in the properties. I owe 32k, but for two properties with 3 houses and 4 total rental units, it's worth at least 90k in this economy and this area. The tax assessment is a little more than that.

The commission based job isn't going to help me right away. I do have two rooms here. One is my office, but heck, who needs an office.

Thank you a ton I will read your advice over and over again, and tell myself I'm not a poker player. I do not want to be foreclosed. I will lose too much equity.

I spoke to a realtor. They say sell it before it's too late. Maybe they are right. I will call them today to see if they have a lead.

Thanks

If you have that level of equity in the properties & can move one or two of them without bringing money to the table, then I'd find an agent and get it done. You can either afford them or you can't. You should be thankful that you have the option to sell as most people are underwater. I recommend against a cash-out refinance or an equity loan of any sort - those are for people in a stable financial situation, which you aren't.

If one of the properties is an inexpensive living solution relative to renting a cheap economy place or rooming up with someone, then maybe you could hold on to one. This is provided that the other sale would get everything caught up and provide an emergency fund.

From your posts, it sounds like poker is the last thing you should be thinking about. As far as the job situation you're obviously going to be facing challenges as presumably a felon with a spotty employment history and poor credit history (not to mention being in an awful economy).

It's not the end of the world though. With a few years' effort you could make a much better case for yourself in all areas. Have you considered trying to go back to school instead of playing poker? You mentioned having a degree in electronics... maybe add to that? So far as I know you'd still just fill out a FAFSA, and if I recall grants and Stafford loans are needs-based and don't consider credit.

You'd have to grind it out selling cars or shoes or whatever and put the time in. But even if you can't get your record expunged in Texas, at least you could make a stronger argument that you've turned your life around if you had something to show. Put the time into some professional development and start building up some good references. And if you find any spare time, consider volunteering once in a while with some local functions, say with a church food drive (or something your record doesn't prevent you from doing).

If you meet enough of the right people and demonstrate that your past problems are behind you, chances are you'll eventually run into someone that can help you.

I have to be honest though - it sounds like your judgement even lately could use some work. Living in a large home you inherited for 6 years, while unemployed & playing poker all day... just doesn't compute at all. I don't say this to be critical, it's just clear that you're struggling with some of the basics and you could use strong support. I and others can post until we're blue in the face, but I think it's probably better to get some support from people you know and trust, in particular those who are successful at life. 49 isn't too old to pull it together but you need a plan put into action as soon as possible.

OP I think you have the wrong mindset here. You can't underestimate the value of a support group and a strong network. Remember the saying, "it's not what you know, but who you know."

It's not like if you meet people you're just going to be using them. Developing give and take relationship is healthy and beneficial for all parties involved. Try to network yourself with people who can get you where you want to go. I honestly think you're just using the drug charges as an excuse not to put yourself out there.

Maybe I have been hiding from the real world for some time now. Especially after the death of my Mother. I was trying to avoid reality, but now have accepted it. At least I think I have.

Does anyone know where I can get a cash-out refinance or an equity loan?

It is true I have no support from family or friends. Where can I look to find some?

I know selling cars is a huge challenge. It has been so far. I'm not even sure if I will be successful, but I will try with everything I have. The job is very demanding of my time, so I will not have any time for anything else.

I am losing two tenants. They are moving out this month, and one of the units will need the carpet replaced, lots of cleaning and paint. How can I finance this?

No doubt, I will lose rent money in July. I did make a friend playing poker in Louisiana who paid a mortgage payment for me yesterday. I am extremely grateful for his help, and for all of your posts on this forum.

i also think you should sell.

if its not at least a cash neutral property (you said it's not), you're playing a dangerous game of chicken if you're looking to hold.

what's holding you to texas? (no family/friend support) Just sell, take the 50ish k windfall and move on.

Thanks Pun. I seriously like the decision to sell. If I can find a buyer, I think this is the best thing to do. There isn't even anything I like about Texas. I left here in 1985, joined the Navy, and vowed never to return. Until my Mom requested my presence before she got very sick and died.

quick read, sell imo

Sell does sound like the best option.

Whatever you do, stop putting any more money into poker.

Sell seems like best choice, you are broke and won't be able to upkeep the properties. If you hang on for too long you will eat up even more equity.

What is your monthly mortgage payment?