For those that have investment rental properties: Have you ever had one of your properties go into foreclosure? If so, were you able to protect your personal assets from the bank? How did you go about doing this? Were you able to protect your credit? Thanks in advance!
Never experienced this, but I'm trying to contact an owner of a condo that I want to buy. It's in pre-foreclosure now. I researched them and found that they deeded their current residence to a trust. I'm assuming for asset protection.
I'd strongly suggest the investor consult with an attorney.
Never had a rental property go into foreclosure. However there is nothing that can be done to protect your credit from a foreclosure.
You may want to consider a short sale or deed in lieu of foreclosure. Not sure how personal assets can be protected from foreclosure, may want to consult with an local attorney.
Personally no, but I would try to avoid it at all costs. It will affect your credit no matter what. You can try a modification, deed in lieu, short sale, or maybe something a bit more creative. But you have tons of investors here on BP, maybe you can look to just unload it to someone, avoid foreclosure and move on.
Hi, I would Search for "Land Trust"and "Asset Protection" using LLC.
Even if you buy as an LLC, many times the bank makes you peronally guarantee mortgages starting out. Also, once you have a foreclosure on your records - it's almost like a bankrupsy, you won't be able to borrow any more money for a LONG time.
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