BANKRUPTCY! - Posted by Family_life

Posted by Joe on May 25, 2006 at 14:31:27:

This sounds like you bought a new construction in the hope of massive appreciation. Right or not?

Tell us what you owe and what the real comps are.

BANKRUPTCY! - Posted by Family_life

Posted by Family_life on May 25, 2006 at 02:52:45:

That’s where I’m heading soon if I don’t figure this out. I got overwhelmed
with the RE advices …flipping property…deals everywhere. 9 months later I
got stuck with 2 houses in Northern Ca. that cost between $850-950 …comp
shows last house was sold for over a million. The builder who promised that
would help me sell …of course can’t sell mine until he sells everything.
What do i do? I’m at the end of the rope…can’t sleep nor think straight…I’ve
got 10 more days then I’m heading to see a lawyer to file for chapter 13…any
solutions? how do I get out of this???

Re: BANKRUPTCY! - Posted by John Corey

Posted by John Corey on May 26, 2006 at 08:13:37:


You need to slow down. Not only did you dive into some deals without have alternative ways to get back out you are about to dive into BK.

You have not provided enough info for people to make suggestions.

It is not even clear how you control the property and who you might owe. If the property is in CA and they were purchased with a loan secured by a trust deed the lender will more or less be limited to foreclosure with no personal recourse back to you (in most cases). So, a BK really messes up your credit and impacts all your assets when maybe nothing like that is needed.

Relax for a few seconds and provide more info if you want advice that might be optimized for your situation.

It is the rapid decision to dive into things that got you here. It is likely that type of behavior that is leading you to think the BK is the right way out. The error might be you jump before you know what you are doing.

John Corey

PS. Do research online what the BK laws are as it will not hurt to know if you can even go that route. The rules changed last Oct.


Posted by JT-IN on May 25, 2006 at 14:33:42:

Much more info must be known in order to give you good, solid advice here. What I clearly got from your post is that you haven’t the cash or cash flow to continue paying for these properties. That much I got.

Now whether you should immediately go file a ch 13 is a much more complex decision, and much more detail will be required in order to provide info there. But let me ask you a few questions, the answers to which may help in providing some useful advice or direction.

ARe these properties now for sale in any way…? If so, by whom…? (Realtor, builder, FSBO). Do you have other income besides RE investing…? Other assets, (non-cash equity)…? Is there any particular asset that you are attempting to protect by using the Ch 13 approach…? Would the lender ocnsider a Deed in Lieu of Foreclosure…? If so, would you consider that… or are you thinking that you are still going to make money here…? Are the lenders currently hounding you at this point…? If so, how far in arrears are you on payments…? Possibly lender would consider a short sale, so that you could lower the price of the offering…?

Just remember this, they can’t eat you… Others have been right in the same spot your find yourself, and they have survived it, either in-tact or not, but this will pass one way or the other. Good luck.