Posted by SusanL.–FL on May 25, 2000 at 08:23:10:
tune into his financial radio program each day. It’ll give you a boost!!
Chapter 11 or Chapter 13 - Posted by Remus
Posted by Remus on May 25, 2000 at 06:39:56:
I’ve come to the conclusion that there is no light at the end of our tunnel. My wife and I own 5 properties that are mortgaged to the hilt. 2 are rented, one we live in and the other 2 we can’t rent until we do some work to them. The one commercial property that we do have rented is in need of work and we can’t afford to get the work done, so the tenents will probably want out of their lease. The bank will not lend us any more. We are past due on one mortgage by one month and our banker said we couldn’t borrow any more until we get caught up, and probably not even then. We’re swimming against a current with lead waders on. We haven’t had any luck trying to sell any of the properties. We have come to the conclusion that our only way out of this is to file for bankruptcy…long enough to keep the hounds at bay. I’m fed up with everything. I just want to sell everything and go rent a shack somewhere out in the middle of nowhere.
Any suggestions?
Re: Chapter 11 or Chapter 13 - Posted by Vic
Posted by Vic on May 25, 2000 at 09:17:30:
Remus,
Susan gives some great advice. Follow it!
By all means, get those properties sold. Find a good mtg. broker & let them know what you are doing. They may be able to help you get your buyer qual’d. If not then sell with owner financing & then sell the note to a note buyer. Be ready for a steep discount though, possibly 10% or more.
If that doesn’t work, you also can lease option them.
Follow Susan’s advice on the ad to use & get it started today in your local newspaper. You can also approach the tenants that are currently in bldg. & see if they’re int’d in buying.
If you can, avoid the bankruptcy because it will show up on your credit report for another 10 yrs. Chances are in that period, you will want to be involved in re investing, perhaps in a different way though. Do keep in mind though, that if you have to file bankruptcy, it will only affect your ability to buy a house for only 2 - 3 yrs. But do try to avoid it, if possible. If you can’t avoid it & have to file, then make sure every payment you make after the BK is discharged is made on time. Lenders will look very hard if you’re pmts are not on time after the BK.
Good Luck!
Vic
In my humble opinion, you STILL have several aces in the hole! - Posted by SusanL.–FL
Posted by SusanL.–FL on May 25, 2000 at 08:06:57:
Grit your teeth to get thru this and just take one day at a time – rather than do something drastic like a BK.
I could have written your post (nearly VERBATIM)!! Similar life scenario (re: R.E.) PLUS loss of income from professional jobs. Suddenly we had $470K in debt crushing us–but SOMEHOW we have ?survived? since 8/96 
and are STILL just taking it ONE day at a time!
What we did:
We ran ads and put out signs?the gist of which read: for sale by owner/as is/little $down$/credit not a problem?..and did wraparound mortgages for the buyers. Ours were sold in WEEKS!
My commercial property I took a $2,000 down payment and was suddenly out from under substantial debt (property taxes/repair bills/etc.)
One of my SFHs was, at that point, in need of MAJOR repair. Sold it ?as is? and believe it or NOT, I got full price for it at
10 l/2%! The buyers were grateful to own their own home!!
My duplex was THREE months behind in payments. I kept the bank posted every step of the way as far as what was happening (new renters, repairs, etc.) and ALSO believe it or not, the bank never ONCE reported me late on my credit report (bless their souls)!
There are a LOT of options available to you to get thru this. I?m sure others will post suggestions. Try to stick it out!!
GOOD LUCK TO YOU!!
Susan
P.S. Did you get into this situation because of a CS course? Just curious! (nt) - Posted by Vic
Posted by Vic on May 25, 2000 at 09:19:01:
nt