i have 4 properties (3 rentals) that i can no longer afford.

jim · Joined: 05 Mar 2008 Posts: 3 1.80 Dollars($)

should i allow 1-2 properties to go into foreclosure? they are rentals but the costs are higher than the rent. 1 property has negative equity.

larry · Joined: 27 Jun 2007 Posts: 2951 411.26 Dollars($)

Hi jim,

Welcome to the forum.

Why are you willing to go for foreclosure? Foreclosure is the worst scenario that one can imagine. People even considers foreclosure worst than Bankruptcy and files Bankruptcy to avoid foreclosure.

I think you should contact with your lender ASAP and check out what is the best affordable option for you.

Check out this article where you will find different ways to avoid foreclosure at http://www.mortgagefit.com/foreclosure/17ways-avoid.html

Hopes this helps you.

Feel free to ask if you have any further questions.

Best of luck,
Larry

Samantha · Posted: Thu Mar 06, 2008 5:40 am Post subject: RE: foreclose rentals?

Hi Jim,

I don't think you should let your properties foreclose so easily. Have you talked to the lenders in this regard? Try selling off the properties and paying off the debts. But if the market isn't good and you are not likely to make good money out of the sale, then I think you should file chapter 13 bankruptcy and try to repay the debt, I mean at least a part of it. But first you need to qualify for it. In case you qualify for chapter 13, you can repay a part of the debt and the rest will be canceled.

Know more about Chapter 13 bankruptcy from a previous discussion.

Hope this helps...

God bless you.

Samantha

evolovik26 · Posted: Thu Mar 06, 2008 7:27 am Post subject:

Question is why did you get 4 properties if you cant afford them?
And what good is a rental property if it doesnt pay for itself?

As to your question should you let them go into foreclosure? Probably not if you have other choices but chances are you dont.

jim · Joined: 05 Mar 2008 Posts: 3 1.80 Dollars($)

Larry & Samantha - Thanks. I will talk to the lenders. Do i need to file chapter 13 on each property or just once?

Eugene - because i am an idiot!!!

jim · Joined: 05 Mar 2008 Posts: 3 1.80 Dollars($)

i live in palm springs ca

larry · Joined: 27 Jun 2007 Posts: 2951 411.26 Dollars($)

Hi jim,

Welcome back.

Have you consulted with your lender yet? If you have consulted, have not you fined nay option to avoid foreclosure other than chapter 13?

I think you should try to sell those properties and pay off the lender.

Even if you want to file chapter 13 then you will have to qualify for it. BTW I think if you file chapter 13 for just once that will be ok. you need not to file chapter 13 on each property separately.

Best of luck,
Larry

Jessica

Hi Jim,

If you qualify for bankruptcy chapter 13, it is only once that you need to file and it will cover all the mortgages. The court will appoint a trustee who will chalk out a repayment plan for you as per your affordability. The trustee will see to it that you repay a certain percentage of the debts and the rest will be discharged.

There may be some negative effect on your credit report but not much because you are at least trying to pay off your debts through a repayment plan and this is something positive.

However, you need to check first whether you qualify for chapter 13 .

Regards,

Jessica

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