Bad Deal - Fire with no Insurance - options to get out from Under

[Jim Goebel]

What are my options to get out from under an asset that had a major fire, where we had no insurance?

This asset (now a liability) is owned under a self directed ROTH IRA.

I know there may be follow on negative consequences to just walking away from something like this (for instance does Des Moines drop the hammer on us in other ways, for instance scrutiny with our other rental properties) ----

I'm exploring giving this property and lot away but I'm guessing Habitat for Humanity only wants it if it can be built on and if the burned house is already cleared.

Another contact said something about QUIT CLAIMING the house to an out of state LLC.

Anyone have any thoughts? 

Thanks!!!!

[Jeremy VanDelinder]

@Jim Goebel First, I'm so sorry you are going through this. I own a restoration company and flip fire damaged properties. I've dealt with numerous homeowners some of whom thought they didn't have options, but we were able to discover some. There are a lot of factors in play--mortgage balance, house value, extent of damage, insurance settlement, etc. @Rene Owczarski has given several ideas above, but the best choice for you depends on the specifics of your situation. If you can sell and come out even or ahead, that is the best option. If you have the cash to rebuild, eventually you will recoop if you hold it long enough. Walking away is an option, but I see it as a last resort.

As for @Greg M.s comment 🙄 The bigger pockets community is not simply "people on the internet" Many are attorneys, tax professional, realtors, insurance agent, experienced investors and in my case, someone who has dealt with this very situation many time. Yes, obviously, check the legalities and tax implications of a plan before you execute--goes without saying. 

I wish you the best. Please let me know if there are any specific questions I can help with.