I own 11 houses.I am thinking about allowing 3 to go foreclosure.How will this affect me and the 8 housesleft?
Question:
If and when I do foreclose can they come after my good houses,cars,savings,401ks etc...?? I live in Ohio. I also own a condo in Florida. I am keeping these ones. I have 9 in Illinois, I want to give up three of them. I owe more on the 3 bad ones then I could sell them for. Help!! I feel horrible doing this. However, if I do not do something I will be in much worse shape.
Answer:
If you do indeed own 11 houses, I think you should know that answer. They will recoup what they can from those homes in forclosure, then put a lein on your other home(s) until they get their money. You are better off selling those homes and getting what you can for them, then paying off the balances with your rental income from the others.
if you own 11 homes why are you on yahoo. you must have lots of money to go out and wine and dine with the rich and famous. unless you have got hold of yourself.and you cant own them if you are talking fore-closer the bank must.
why do people have to big note them selfs
It might be better to consider "deed in lieu of foreclosure". You may need these loan companies in the future for business loans. Why not try to sell them? Wouldn't you have better benefits in tax write offs for loss? When you let them go to foreclosure we all pay for this and it hurts the economy.
You might consider getting advice from an attorney and an accountant before you decide.
Why can't you evict the tenants/?
I wish you were in NY, I would have taken over the payments.
Do not stop paying, it will hurt your credit.
Where are these people coming from? I own 23 houses and am FAR from rich! LOL!! Landlords are not sitting on hordes of money, we have a really addictive habit of investing every cent, so the bank accounts are pretty dismal.
I am surprised you are asking this though. The banks have a RIGHT to their money, you borrowed and spent it. They will get it and can put liens or repossess as many as required re-coop their losses. And yes, they can sue to take your non-real estate assets too.
If you walk away your days as an investor are over. There goes your credit rating.
First, talk to your tax accountant. (better yet, get a NEW one, yours is $crewing you to let you get in this position) You can write off the depreciation and all of the repairs. All is not doom and gloom.
Also, raise your rent or rethink your investment strategy. You should be clearing at least 50% over the mortgage on your properties, that should protect you from the slow months.
I understand your concern - you are not the only one in the boat - thousands of them dreaming to have millions, instead they got debt.
I don't see why the other properties will be taken from you. Your PMI / house insurance should be of helped - force it to work for you.
It is you to be really forceful when you talk to your lender - From the seminar I attended to - the speaker said - you have to go there face to face - dress professionally - and make them think you know what you are negotiating about - your life.
You know how hard this is for you - tell them and tell them good that they should help you be saved. You have several houses to tell them and use them for your negotiations. Don't barge - because you are a businessman and you didn't do this on purpose. If that didn't work - do plan #2. Be mad about this and forcefully tell them - "I need your support!"
(That's what realtor will do for you if you hire one when you do a short sale. believe me- I was trained on this.) Gather all your documents before you go as if you are going to a WWIII.
Anyway - act right away is the answer - hire a real estate attorney - do a short sale - hire a realtor who's really really good at this and see if he will work not commission basis - talk to your lender a s a p and negotiate - but do something NOW. The more you wait - the more penalties you have to pay and the more deeper trouble you will have on your shoulder. Good Luck to you! - California
Joe---you are a fake and phoney---you own $$3 million dollare in real estate and you want our opinion?? How Pompus. Your the business man you know the in and outs. I know people that when things happen they like to boast of their losses. To create an atmosphere that they are broke and suffering in their Florida Beach condo. Some people might be lucky to own one home and you have 11. I really don't believe this question. I think this a bogus question. Joe, is trying to create this fantesy problem get a rise out of Yahoo questions people and he has a laugh from our answers.
when you bought each home individually you applied for and rec a loan for each on its own merit. therefore, the bank will not/ cannot affect the loans of the other.
so, unless you have a wrap-around-deed-of-trust on all your property's, you're home free.
Real property stands on its own feet, you will retain all your assets and 401s and do not feel threatened by a foreclosure...the worst that can happen is its bad for the credit and you may not get a loan through that lender again.
More Related Questions & Answers...