Hobson's Choice

There are some interesting factors involved with this house where the mortgage is called due. First, when one has superior credit, the mortgage company doesn't necessarily believe the mortgage holder (us) will actually follow through with having a home returned. After all, it isn't in our nature. Marty is telling them, "we are giving you the home back." The mortgage company is saying, "Of course you are..." (nudge, nudge, wink, wink).

The other interesting aspect is that the mortgage company doesn't appear to want the home back. We happen to be the most upside down on this particular property than all of the rest. It will be painful for them. Frankly, it will be painful for all of us. When we have broached the subject with our representative at the mortgage company, they say, "Now wait a minute... Don't be so hasty, we are working with you." Which really isn't true.

Additionally, the home is vacant. And, according to Flunky (the property management's maintenance guy), the home is in disrepair. So, there is no money coming in to cover the repairs or the mortgage.

When Slick Willy (my contact at the property management company), emailed me a few weeks ago he asked me what I was going to do about the work that needed to be done at the house. I told him then, I didn't have the money to fix up the house. Willy didn't offer any solutions. Willy didn't say, "what can you afford." Willy did nothing.

Fast forward to yesterday. Willy sent me an email. He said, "We have a deposit on your house. Will you be remodeling it?" Mind you, he didn't call me. Mind you, the house has not been advertised (I checked). Mind you, there is no sign in the front yard (I also checked). Mind you, a deposit means I would have approved a tenant and the rental price.

I told Marty I didn't believe Willy. If he had a potential tenant, he would have called. If he had a potential tenant--who had put down a deposit--that means they would have approved the home in the condition it is in (which, by the way, I have heard from another source over there--who may or may not have gone through the unlocked back door--that the home is in reasonable condition and does not need thousands in repairs).

Here's the rub: until the mortgage company agrees to fix our loan they called due, we are at an impasse. We can't rent the house out if the mortgage company is going to take it back. We can't update the home because the home is vacant and there is no sense in putting money into the property if the mortgage company is going to take it back. In fact, we can't afford to pay the mortgage on it any more. And, if we can't pay the mortgage, we will loose the home.