Conhair1 Posted January 11, 2008 Report Share Posted January 11, 2008 I'm upside down on two investment properties. I have a negative cash flow of about $2000. per month and they will not sell in this market. If I go into foreclosure can the lender come sue for the remaining cash that I have or the little equity I have left in my personal home. Is it better just to declare bankruptcy. Thanks:roll: Link to comment Share on other sites More sharing options...
trueq Posted January 11, 2008 Report Share Posted January 11, 2008 and a lot of other debt, Declare Ch. 7 bankruptcy Monday.If you have other Exempt assets, you could still declare a Ch. 13. A 13 lets you keep everything else and you could possibly surrender those secured properties to the creditor in exchange for a release during formation of the 13 plan.Creditors could demand the difference (between balance and what they dispose of property for) in the 13 court re-payment plan.See a lawyer. Its really about what is most cost effective. Surrender and voluntary negotiated default with the secured creditors might be the best way. I would not wait, you could pay for the lawyer with one month's negative cash flow. Link to comment Share on other sites More sharing options...
LadynRed Posted January 12, 2008 Report Share Posted January 12, 2008 Declare Ch. 7 bankruptcy Monday.Yeah.. nice idea but not possible, too much work involved and you are REQUIRED to have that credit counseling certificate before you can file a single piece of paper.If the properties are foreclosed on and there are deficiency balances on those mortgages, they WILL sue you for the deficiency amounts. IMO, bankruptcy is your best option. Link to comment Share on other sites More sharing options...
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