 Mon, Aug 18 2008 3:16 PM
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courtney
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guidance for a possible foreclosure situation
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Hello, I'm seeking guidance from all of you more experienced investors. I live in CA and have 4 investment properties in Philadelphia. We put very little down and have always had negative cashflow from these properties. Whenever we invest, we always transfer title into our LLC (since we couldn't get mortgages in an LLC without credit, we had to use our personal names) but somehow, these properties slipped through the cracks and were never transferred into the LLC. So basically, even though they were a business investment, the only thing that was in the name of the LLC as opposed to being in our personal names, was the checking account the mortgage checks were made out of!! We are now having serious difficulties paying the mortgages but are scared to death of what is going to happen to our personal assets and credit. Any ideas of options that would hit our credit the least? Can they come after our personal finances? Any information or referrals would be GREATLY appreciated. Thanks for your time.
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Tue, Aug 19 2008 4:54 PM
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joe_b
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Re: guidance for a possible foreclosure situation
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Courtney, I saw 2 of your messages -- my partner will help with short sales in NJ, may have contacts which will help in PA - probably needs a PA license to do it there - I don't pay too much attention. I've done them, too. But you are kinda at the wrong end of that stick. The short sale work that just about anyone does is after a buyer is found and to minimize the cost to the buyer.
What are the addresses of the properties, other particulars? [If you prefer, you can send them to me at notsji@mathdork.com ] My guess is that if you are in it deep and not making money, someone has to lose $$ to have an investor interested in them, right? Also, I am working on a couple of places in Philly - I always try to make connections for people, so who knows - maybe there is something there..?
With your mortgage and note - you are probably stuck. You personally signed for them, they are in YOUR name, it will be your credit that is damage and nobody is interested in helping investors so no congress money, etc. will be there to bail you out like they will be doing with homeowners (voters, that is..). You owe XYZ company money, the mortgage covers the property, the note covers you. I believe it is the defaulted mortgage which will show up on your credit as a foreclosure. The note is the note - they can get a judgment, etc. and yes, go after you personally for the money. No reason that they shouldn't - if you have money.
My guess is that the best bet is to unload them and work hard on a short sale to minimize your losses. Also, press hard for no 1099 and try to get them to dismiss what you owe as the difference or that will still turn into a personal judgment against you.
I'm not a lawyer, just speaking from what I know and have learned...
-- Joe B.
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Thu, Aug 28 2008 10:01 AM
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jasonequitysolutions
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Re: guidance for a possible foreclosure situation
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please contact me at jason@equitysolutions.us
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