Facing 4closure on 2 props. Can they attack my primary res?

Hello, I own three investment properties (CO and TX) and a primary residence in CA. I am upside down and neg cash flow on the two TX homes. I've been trying to lease-to-own, but there is no way I can get a monthly lease rate equal to the mortgage/tax/insurance payments. I can't afford the loss and am ready to walk away.

If I let them go to foreclosure, will the lenders go after my other assets? My property in CO may have $10K equity in it. My personal residence may have $300K equity in it. Other than that, I have no cash and very few other assets.

My main goal is to keep anyone from taking my primary residence. Secondary goal is to avoid bankruptcy. I'm willing to take a credit hit.

Any advice is greatly appreciated. Thank you.

Edited: 06/26/2010 at 05:06AM

Jonathan Katz

Real Estate Consultant · Calabasas, California

96 posts
1 award
50 influence

Apr 27 '08, 02:07 PM

Originally posted by "nimcompop"

Hello, I own three investment properties (CO and TX) and a primary residence in CA. I am upside down and neg cash flow on the two TX homes. I've been trying to lease-to-own, but there is no way I can get a monthly lease rate equal to the mortgage/tax/insurance payments. I can't afford the loss and am ready to walk away.

If I let them go to foreclosure, will the lenders go after my other assets? My property in CO may have $10K equity in it. My personal residence may have $300K equity in it. Other than that, I have no cash and very few other assets.

My main goal is to keep anyone from taking my primary residence. Secondary goal is to avoid bankruptcy. I'm willing to take a credit hit.

Any advice is greatly appreciated. Thank you.

Pop,
As we are concerned that you are in a tough place we suggest you negotiate an arrangement with your lenders to attempt to avoid as many of the complications as possible. It is interesting because the bank's intent is to find a happy medium for them which may be at times trying to latch on to some equity in another property, seek to get a judgment against you, or even look to garnish future wages. Potentially leaving a cloud over you for sometime. As we take care of our clients cases with their lenders we see they may chance larger issues if things draw out. On an average we have been able to save several thousands in fees at times just by acting quickly and effectively in order to help minimize the high expenses on the side of the bank. You're going to be best off lowering the prices of the properties that need to be liquidated and hope to be granted relief for the debt from the lender to the difference.

We find BK (even though we do have BK filing services) does not work for everyone. In fact you must be well aware that if you are having trouble making payments now wait till you get trustee involved (depending on the chapter filed). If you decide to go ahead and file BK at times you may be able to shield some of your assets but could find less than adequate coverage in other places.

If we can be of further assistance please feel free to contact us. PM us at any time.

Edited: 06/26/2010 at 05:06AM

Dick Green

Residential Real Estate Broker · Conroe, Texas

1,596 posts
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Apr 28 '08, 10:27 PM

I'm in Texas....I can probably help. There's some new programs available to structure equity adjustments, short sales, and loss mitigation. Contact me anytime for more info.

Edited: 06/26/2010 at 05:07AM

John DiCanio

Real Estate Consultant

10 posts
50 influence

Jul 10 '08, 05:31 AM

there are different avenues you can go down like the short sale and loan modifications but they dont always work. bk will not always protect you so be sure to consult a good atty. if all your avenues have failed we have a new avenue to drive down that will help you keep your house for the next two years if you want any help please reply or PM me and i will show you the light at the end of the tunnel.

best regards,

Edited: 06/26/2010 at 05:29AM