# The Rock Island South Rail Road has stopped all operations



## Randy Stone (Jan 2, 2008)

Yes, the trains have all been boxed and after two truck load trips to the storage unit, all equipment is moth balled with no known date for resumming operations. The only thing left standing are three or four buildings which will be taken down, disassembled and put in storage also. We moved a large desk, display case, three chairs and a couch in to storage. Still to be hauled to storage is my 2800+ toy cars and numerous other stuff. These realtors, want the house to look un lived in. The car lift has been sold. I need to list the pool table on craigs list. 

Doing a short sale means we stay till an offer is accepted by the bank and then we have 30-45 days to move out. Right now the paper work has been submitted by our lawyer to the bank. We are now waiting for the bank to process the paperwork and then they will send someone to estimate the value of the house so the bank can set the asking price that the realtor will list the house at. Of course the lawyer thinks the house will sell within the first 5 people walking through. Figuring what the realtor thinkls it will sell at, it should sell quickly, but if the bank sets the price too high, it could set for months. So we wait.


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## Stan Cedarleaf (Jan 2, 2008)

That's a bummer, Randy... Sorry to hear that...


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## Randy Stone (Jan 2, 2008)

Well after three weeks I have the toy room emptied out, the Florida room is emptied of trains stuff and all the trains are now in storage. I just got back from taking one load of toy cars to the storage unit and have one more load to take. Above I said the lawyer said the hose would sell within the first 5 people coming through, I meant Realtor. The bank's realtor came Wedsenday, looked the property over and took pictures. Once he submits his report to the bank, the bank will contact my lawyer and realtor as to what the house is to be listed at for sale. The bank got their realtor here to value the house much faster than I expected, so who knows how long it will take them to set a selling price. Still alot more stuff to box and put in storage. Wonder how long this moving business will take to turn my hair gray again?


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## jake3404 (Dec 3, 2010)

Jeez Randy, I really feel bad for you. 

Is there any place, such as a club, where you can run some of your trains?


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## Randy Stone (Jan 2, 2008)

I attended one of the local club meetings of the Florida Garden Railroad Society. It was really nothing more than a social event. The host ran his trains during the whole afternoon. I didn't see anyone else running trains. 

So, I'll wait till Marty's next year.


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## aceinspp (Jan 2, 2008)

Well with all the help out there to redo the loan's I have a hard time wondering what you did wrong. Here in Atlanta they have had the hart program available for folks to redo there loans. These folks travel around the country. This reduced your percentage and allows you to keep your home. later RJD


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## Randy Stone (Jan 2, 2008)

They offered to reduce the interest rate to 2%, but along with the lower interest rate, they were going to change the 30 year loan to 45 years and put a $40,000 baloon as the last payment. 

We counter offered to drop the baloon payment and we would keep the house. 

The bank declined, so we are getting the house ready for a short sale. 

So our house we paid $400,000.00 in 2006 will most likely sell for $175,000 to $200,000 

Someone will get a great deal. 

Anyone willing to loan us $200,000? We'd buy it our selves.


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## BodsRailRoad (Jul 26, 2008)

By dropping your intrest rate to 2% and extending your mortgage to 45 years, It seems like the bank did everything it could to try and help. 

Sorry to hear about your troubles, hope everything works out.


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## Ralph Berg (Jun 2, 2009)

Randy,
I really don't understand the objection to the balloon payment. I don't know about you, but I seriously doubt I'll be around in 45 years.
But if you were, by then you would certainly have enough equity to finance the balloon payment.
Maybe you should reconsider the offer if the payments are not so high as to be a burden.
Ralph


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## Greg Elmassian (Jan 3, 2008)

In 45 years, $40,000 will be chump change... 

Just check the historic rate of inflation... 



Greg


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## Randy Stone (Jan 2, 2008)

The baloon payment would not be a problem if we planned to live in this house till we died. 

But it would be years before the house would be worth what is owed on it with the baloon payment. 

We would never be able to sell it for what it was worth if we wanted or needed to sell it.


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## Greg Elmassian (Jan 3, 2008)

I surely don't want to belabor the point, as I know it's been a pain for you, but your first sentence basically says it's not a good deal if you sell the house. Isn't the balloon payment just part of the loan? The balloon payment affects WHEN and HOW you pay off the loan, not the "how much", i.e. the amount of the loan on the house. 

I would think that the amount of the loan remains fixed, irrespective of a balloon payment or not. 

This is where I cannot follow the logic. 

Regards, Greg


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## Mike Reilley (Jan 2, 2008)

Randy....guess I missed this one. Sounds like the bank didn't want to short sell your house because that's the best refinancing deal I've ever heard. Period. I've got a daughter in about the same situation...and she can't get the bank to even talk with her about a refinancing....and I've not heard of one anywhere that good. Sounds to me that the bank just wants to avoid taking a loss...and are willing to "rent" you the house cheap.


On a $400K note, wouldn't it make the payments around $666 a month (2% of $400K is $8000 a year = $666 a month)? And, I agree with Greg, the $40K balloon is in THEN years dollars....maybe way out there. I can't see how you could even rent a small apartment for that kind of money...and by taking the deal, you avoid all the IRS issues of declaring the banks loss as your income and paying taxes on it. 

Is there some angle I'm not seeing?...other than taking the offer means you just kick the problem to sometime in the future.


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## Randy Stone (Jan 2, 2008)

If we decided to sell the house in say 5 years, instead of owing 306,000 we would owe 346,000 
. So the chances of the house gaining 146000 dollars in value is very slim. That means we would have to come up with the extra cash toclose the deal. 
We can walk away now and not be liable for the 146000 difference and not have to pay the irs for the gift as they call it. 

This all has to do with our wanting to move to az down the road.


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## Mike Reilley (Jan 2, 2008)

How'd ya avoid the "gift" tax?


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## blueregal (Jan 3, 2008)

The "Guberment" will get you one way or another!! They like to give but then take back 3 or 4 times legally what they give you!! Regal and no I'm not laughing out loud on that!!


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## Greg Elmassian (Jan 3, 2008)

OK, so you owe 306,000 now, and if you re-fi, you owe 346,000 .... now I finally understand. 

Sorry Randy, I guess I'm thick sometimes! 

Greg


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## GN_Rocky (Jan 6, 2008)

I'm not one for figuring out the details on the house deal, but that last comment you made Randy, your wanting to move to AZ - now that's the best thing I've heard on your thread !! FL is a dying state that is only for the very rich and unfortunately, for the forgieners - legal and illegal. You can't find a decent job that makes a decent wage above minimum. It is a good decision for you to move away from there. Hope all gets better for you and that you find a better job, house and life for your family in AZ









Rocky


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## Randy Stone (Jan 2, 2008)

Mike, the gift tax is another Obama up front freeby for those selling their house as a short sale. 

Regal, we're not supposed to be smart enough to understand that. 

No problem Greg 

Rocky, I'm sorry, you hated Florida so much, but I myself like it just fine here. I would never consider leaving except the wife want to move back to Az. She's lived here with me for 14 years, so at some point we'll head west.


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## aceinspp (Jan 2, 2008)

Well I would have figured if this was my dream house as you stated then why would one want to ever sell it if one could still stay in it by doing the refinancing. I'd hope at some point in time things would change around in the housing market in FL. I'd sure be Leary of a move to AZ with the high unemployment rate. I just hope this all works out for ya. Later RJD


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## John J (Dec 29, 2007)

Posted By Greg Elmassian on 07 Nov 2011 09:10 AM 
I surely don't want to belabor the point, as I know it's been a pain for you, but your first sentence basically says it's not a good deal if you sell the house. Isn't the balloon payment just part of the loan? The balloon payment affects WHEN and HOW you pay off the loan, not the "how much", i.e. the amount of the loan on the house. 

I would think that the amount of the loan remains fixed, irrespective of a balloon payment or not. 

This is where I cannot follow the logic. 

Regards, Greg 





You are dealing with a bank. Logic does not enter the picture.

Remember they are not here to help us. Like insurance companies they have created a notch and are a necessary evil. 


JJ


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## Doug C (Jan 14, 2008)

".....would certainly have enough equity to finance the balloon payment." 
If that "equity" you mention is the house and the balloon payment is on same house . . . . Is that thinking not how soooo many people got into trouble in the first place ?? With an assist by some slimy financial suits !!?


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## Ralph Berg (Jun 2, 2009)

Posted By Doug C on 09 Nov 2011 12:18 AM 
".....would certainly have enough equity to finance the balloon payment."   
If that "equity" you mention is the house and the balloon payment is on same house . . . . Is that thinking not how soooo many people got into trouble in the first place ??    With an assist by some slimy financial suits !!?


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## John J (Dec 29, 2007)

Some Slimy financial institutions?

They are all slimy 

JJ


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