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 silvercatmcd
Joined: 04 Jan 2009
Posts: 1
1.73 Dollars($)
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 Posted: Sun Jan 04, 2009 3:51 pm Post subject: With rentals and primary house, foreclose on one, how to pro |
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| With rentals and primary house, foreclose on one, how to protect the others?...I have two properties that I can't pay on anymore (a lot in N. Carolina (2000/mo) and a house that won't rent in Atlanta (700/mo)). I am negative every month and don't have much cash left. I co-own 8 additional rental properties in various states with renters in them and they break even. I also co-own my primary house in California. I live in California. If I do short sales on the lot and the Atlanta house and the lenders don't get enough to pay off the mortgages, will they come after my other houses that I own 50/50 with my partner? I want to somehow protect the remaining real estate that I co-own. |
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smithsussane
Joined: 18 Sep 2008
Posts: 3738
Location: Alaska
561.45 Dollars($)
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| Posted: Sun Jan 04, 2009 7:47 pm Post subject: |
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Hi silvercatmcd,
Welcome to forums!
The lenders have all the right to recover their debts. In case if you short sale the property in Atlanta and the lot, the lender may ask you to pay the deficient amount. If you cannot pay the deficient amount, they will then place liens on your other property. If you pay them the deficient amount, then the question of liens does not arise.
Feel free to ask if you have further queries.
Sussane |
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SilverCat
Guest
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| Posted: Sun Jan 04, 2009 8:46 pm Post subject: More Questions on Protecting Property |
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Hi Sussane - Thanks for the reply. So the question is how do I protect those properties from liens? Can I put them into an LLC? Or, what about the anti-deficiency laws in CA where I live? Will that protect my other assets?
And if a property has a lien on it, does that force me to sell the house? And will they go from rental house to rental house until all the houses have liens, then get short sold (because we have very little equity in the rentals)? And does my partner lose her 50% share?
Thanks. |
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Niicss
Joined: 03 Oct 2005
Posts: 2620
Location: New Jersey
409.63 Dollars($)
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| Posted: Mon Jan 05, 2009 3:08 am Post subject: |
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Hi SilverCat
If you already have a mortgage on the property, then transferring the property to an LLC will not be allowed by the lender. Lien on a property will not force you to sell the property but whenever you sell off the property, the lien holder will satisfy his dues from the sale.
California has anti-deficiency laws which will protect the borrower from the liability of paying the deficient amount to the lender after a foreclosure sale if it is not enough to fully pay the loan. It will release you from the liability of paying the deficient amount.
Thanks.
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Good is the Enemy of Great. |
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