Should I file bankruptcy on my rental properties.

jtoney · Joined: 12 Jul 2007 Posts: 1 1.43 Dollars($)

I have 7 rental properties that have become draining. I am barely making the mortgages every month due to the renters moving out, Section 8 problems, etc. I have maintained a high Beacon Score and I am seriously considering foreclosing or filing bankruptcy to get out of this situation. What should I do? Selling may not be an option or fast enough.

diane · Joined: 12 Jul 2007 Posts: 4 2.19 Dollars($)

If at all possible try not to file. You've worked too hard for your good credit. Bankruptcy stays on your credit for 14 years. You can still get a good rate after 2 years but you will always have that filing hanging over your head. There are many investors out there who are looking to pick up a good deal and this might help you out. Contact me ASAP so I can get more info and try to help you out of this situation. Smile

miller_st · Joined: 17 Jan 2007 Posts: 917 168.84 Dollars($)

blue · Posted: Thu Jul 12, 2007 4:59 pm Post subject:

As there are chances that the properties can be sold off though after some time you should try to convince your mortgage company not to start the foreclosure process.

If they get the assurance that these properties can be sold off for a reasonable value which would help to recover the mortgage balance, they will co-operate with you.

Thanks
Blue

Guest 0.10 Dollars($)

Foreclosure as well as bankruptcy both will result a drop in your credit score and future debt borrowing ability for a number of years. Avoiding both if can be possible would be advisable.

larry · Joined: 27 Jun 2007 Posts: 3328 473.51 Dollars($)

Hi Jtoney,

Bankruptcy does have a negative effect on your credit. Besides remaining on your credit report for at least 7 years, it will always obstuct when you try to obtain another loan. Rather it is better if you try to sell the properties at a reasonable rate in the market. And before you consider filing bankruptcy, I would recommend you contact the lender to discuss your options. He can probably help you with some loss mitigation plans without having you file for bankruptcy.

Caron

Hi Jtoney,

Welcome to our forums.

I understand it's becoming difficult for you to pay off all the loans. But hey, are all the renters moving out at the same time? You've mentioned about some section 8 problems. If you don't mind, feel free to share it here. May be I can give you some suggestions to help you get out of the problem.

Now, as far as going for a foreclosure is concerned, I don't think it will be feasible option as there are so many rental properties involved here. Also, you have a high beacon score which would be affected if you are into foreclosure.

Even if you go for bankruptcy, it will have a negative impact on your score. So, I shall suggest that you consult your lender and see if he can provide you with an alternative payment plan so that you can continue to pay off the loan. Also, you can request him to suspend your payments for a while so that within that time period, you can gather the funds required to make at least a part of the payments that you've not been able to do.

However, if you are thinking of a bankruptcy, I shall suggest that you avoid it and can instead go for the different alternatives to filing a bankruptcy.

Hope everything turns out well for you. Keeping my fingers crossed...

Guest 0.10 Dollars($)

If you have a lease and havent pd can you add what you owe to the bankruptcy and can they put you out?

0.10 Dollars($)

I think it depends on which bankruptcy you are filing.

The unpaid lease should be included in case of a Ch 7 bankruptcy.

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