Posted: Sat Apr 21, 2007 10:28 pm Post subject: Foreclosure on some properties, able to keep others????
I have 5 houses and 1 apartment building. I am over-extended. Did too much "Cash-out-Re-Fi" and I am in trouble. My own fault. Two places are upside down and I was declined a short sale and now either foreclosure or Deed in Lieu. But, is bankruptcy better? Or will "they" take everything else? Will they take the other properties? Or force sales of the remaining properties? Would like to keep the main house I live in......and maybe apartment building and one more house?!?!?? Please help, thanks..Johnchiz@gmail.com, 213-392-1564. Pasadena, CA.
In your situation bankruptcy is better. Because even if there are 2 properties ready for deed-in-lieu or foreclosure, you still have 4 other properties, out of which one is your primary home and it's better to keep it for yourself.
Though bankruptcy will make your score drop down considerably, yet I think if you want to start afresh, check with the bankruptcy attorney if you can file chapter 7.
If a few of your properties are already into foreclosure, then you may file bankruptcy to stop the process at least for a while if it Chapter 7 that you have filed.
Hmmmm.....I thought that bankrupcty only allows a person to live in safety for two years THEN the creditors can go after any equity to satisfy unpaid debts. Also - Deed in Lieu may be looked at as a "Gift" from the lender and therefore be a tax liability. So---maybe just allow forclosure on the upside down properties, suffer the credit consequences and continue to make payments on personal house?!?!? Cheers for now!
Posted: Tue Apr 24, 2007 4:13 am Post subject: RE: foreclosure better than bankruptcy
Hi Johnchiz,
It is better to let your properties be foreclosed; even better would be to do a short sale or a deed-in-lieu as these will have less impact on your credit score. But try to avoid filing a bankruptcy as it ruins the credit entirely and it takes much more time to recover from a bad credit history along with bankruptcy tied to it.
johnchiz
