Honest and deperate plea for help!

[steve-in-kville]

Folks, I've been hanging around here for a while. Made a lot of changes in our lives. This place is great... much to learn.

However.... I feel like my world is falling to pieces. I am behind in mortgage payments on my own home plus our rentals. I am forever getting shut-off notices for our electric. I am to put food on the table but cannot afford a full tank of oil for this coming winter (I've been dumping kerosine in the tank everyweek to keep the house warm at night).

My 3 out of 4 of my tenants are behind on rent and paying me by the week to catch up, which is better than nothing. Every one of our investment properties are for sale. I haven't had a bite in weeks.

I have a private loan that we are a few months behind on. I have to cough up $257 by Thursday to keep the electric turned on. I am half venting, half crying for help. I need something beyond credit managment or counseling. I am considering walking away from it all and renting a home for a few years. A co-worker suggested bankcrupcy, but I don't believe in just NOT paying. I need a break and a chance to re-group, re-focus and re-organize.

I am open to anything... feel free to reply by PM or email kb3lom@hotmail.com. I want to hear from anyone that went through a similar situation.

[Emjo]

I haven't been in your shoes, but I would use some of your EF to get your utilities current and buy oil for winter. To me not having power or heat is definitely an emergency!

Good luck!

[cab54]

Yeah, I agree with Emjo. Sometimes desperate times call for desperate measures. If you have sold every little thing you can, and have cut back in every little way, then dip into the EF. This is what it is for.

[Greebo]

I'm just getting started in real estate, so I have not been where you are, but I have to ask - what kind of up front screening did you do on your current tenants? How hard would it be to replace them? If the properties were fully rented and current, would they be making a profit? Are you listing the properties for what you owe, what will turn a profit, or what the market says is a good price?

I'm guessing that one thing you aren't doing is living on a priority based budget, because your own house - the utilities, etc., come above debts and investment properties.

So - can you give us some more specifics? What is your house hold income, and from what sources? What are your expenses? Are you tracking them? What is the rental income (or rather, what should it be), and what are the mortgages?

If you want solid advice, we need a very complete picture. If you're willing to present that picture, we'll do all we can to help.

[peanut]

You know, Dave Ramsey, the financial guru, went through this same scenario when he was younger...only he actually owned and tried to sell homes. He ended up declaring bankrupcy and starting all over...very successfully I might add. You might want to look at some of his materials to see how he managed. There's a lot of his stuff available for free on-line.

I agree with the others, heat is a need, and oil an emergency thing. Don't go without oil...unless you have some kind of backup.

But key to that is to really nail that grocery budget and other areas of your budget to make sure you can't possibly squeeze any more out of it for essentials like oil.

sorry I can't be more help. I just haven't been where you are. Best of luck Steve.

Jean

[cheles2kids]

Greebo beat me to it, but I was going to also suggest getting all of your "needs" met first.
Mortgage, utilities, gas, water, groceries, etc. on the home that you live in.
How many months are you behind on your mortgage? Have you contacted your mortgage company? Have you tried to set up a payment plan for your electricity? Would you qualify for emergency assistance?
I'm just throwing ideas out there, you didn't give us much to go on.
Priorities.

Then, I would look at your rental properties. Worry about the tentants, getting the rent up to date, or as Greebo already suggested, possibly considering getting new tenants altogether, making sure you have them listed reasonably to sale, etc.

As for your private loan. Remember, you need to keep a roof over your heads, foods on the table and keep yourselves warm, first and foremost.
Then & only then do you work on your other loans.

More details would certainly help other, more experienced people here, be able to help you better.

[steve-in-kville]

Sad part is, we used up the EF about a month ago to cover some medical bills my insurance didn't cover.

[FrugalMomof3]

I agree that this is the time you dip into your EF, no questions asked.

As for the tenants, maybe you need to find new tenants.... in this day and age, tenants seem to have more leeway as far as evictions, so make sure you do it the right way, it does take a while to evict tenants.

Your main priority would be to get everything back up to date, call the power company and ask for payment arrangements, contact your mortgage company and explain the situation, they will most likely help you as they lose money on foreclosing on properties.

How may months behind on mortgage payments are you?

[Cricketlegs]

So your EF listed no longer exists.

Unless or until we get a better income / outcome picture we are not in much position to offer quality advice, just general ideas.

I say the home you live in, food, and utilities are what you need to worry about at this point. Forget the rest.

Food, and shelter are the top things to worry about.

[madhen]

I don't have much to add except that when it comes to your tenants, you might have to toughen up. My sister has several rentals, and she tried being "nice" and letting people fall behind, because we all have sob stories. Her rentals are VERY reasonable, and they are well-maintained, and her tenants admitted that they could not find comparable housing for that price anywhere else. When she kept getting excuses rather than rent, she finally learned her lesson and toughened up. Gave them x number of days to get caught up on rent and an ultimatum to shape up or ship out. They grumbled and threatened to move out, but after checking the market, they figured out they had a good thing and paid up. Their irresponsibility and inability to manage their money should not become your problem. You don't need the stress, and you DO need to count on a steady income if you are to get out of your current situation.

I would definitely consider bankruptcy if things get worse. I am like you, I believe in paying my debts, but if you just can't do it, you don't want to end up without a roof over your head. You can always make a personal note that you will someday "make up" that debt by donating the amount you currently owe to a good cause or a charity of your choice, if that makes the decision easier.

[lotsadebt]

Bankruptcy is not an easy out. You will be put on a re-payment plan administrated by a trustee. That will last for years.It is also a long hourney DH's took a year to finalize and wasn't cheap $1500 in lawyer fees.
Be honset with yourself and get things out on paper. All the numbers out there to see what is owed and behind.
DH is finding a second job just to cover his re-payments to trustee. Household expenses/mortage and children still have to be accounted for.

[homemaker66]

First I would call the bank to see if they would let you make smaller payments just for now. Have you gone and get another job to help out? At this point everyone in the family yes even your children can go get a job if they are the right age. This situation is really going to put your nose to the grind stone. And for the tenants either they pay or move on. I would put anything you can sell out by the curb and on ebay to make the extra. No cable,long distance,computer etc. Save every penny that comes through that door. You will be surpise on how much you can save if everyone pulls together. Maybe you can share your house with another family and everyone helps out with the bills. This would help someone else to get onto their feet. Remember the days when everyone lived together just to make ends meat what happend to them.

[steve-in-kville]

The good thing going with the rentals is that the tenants are paying me cash weekly to catch up. My houses are well maintained. If I would evict, that would cost me money in filing fees and then I have no tenants at all (which means no income at all).

If we could sell just one of the homes, we would eliminate a lot of stress, but the market is shot, to say the least.

[Greebo]

What do you owe on the properties and what are they worth?

[leezza]

http://www.acf.hhs.gov/programs/ocs/liheap/
low income assistance with things.

Check food banks

Check with your local church

Keep only 1 phone for emergencies

Disconnect cable & internet