Posted by SJO on June 13, 2006 at 11:23:57:
Is there any equity in any of the properties? You could borrow some of that equity to get you through this period. You may be able to bundle a few of them as security for a single loan, if that helps. I would speak to a few good mortgage brokers about this before I would let a BK happen. Maybe there’s a better way out.
House of Cards - Posted by Ron
Posted by Ron on June 13, 2006 at 09:37:53:
Well, it happened. about one half of my properties either went empty or the tenants didnt pay their rent. Now I have to declare Ch 7. No choice, but has anyone else noted that the quality of tennats in general has gone downhill BIG TIME?
Wish me luck!
Re: House of Cards - Posted by Sean
Posted by Sean on June 16, 2006 at 11:37:55:
Sorry to hear for your troubles. However, if you can’t fill them with your current requirements for tenants, maybe you have to lower your standards…
React to the market, or be eaten.
What can you do to get your houses filled now? What can you offer that others aren’t? Maybe allow pets? Lower your rents… throw in some booty… maybe of 12 months for 11 months worth of rent… Of course make that the LAST month of the lease, not the first… and only elegible if all rent payments are made in full and on time for the previous 11… etc etc etc…
Get creative and get them filled.
Re: House of Cards - Posted by Dave T
Posted by Dave T on June 14, 2006 at 22:21:03:
With the change to the bankruptcy laws that became effective last October, you can no longer go straight to Chapter 7. You have to try Chapter 13 first, which is the workout plan to pay all your creditors.
Better to try to keep renters in place, even at reduced rents and either get forebearance agreements with your lenders or workout plans in place.
Bankruptcy stays on your credit report up to 10 years, foreclosure stays on seven years.
as I see it… - Posted by David Krulac
Posted by David Krulac on June 13, 2006 at 17:43:32:
the quality of tenant applications declined when the interest rates declined, as the interest rates increase so has the quality of the tenants.
I’d recommend that you sell some, particularily the troublesome properties and try to keep the better ones. There is the tempatation to sell the better ones as they will be the easiest to sell, don’t do it.
Re: House of Cards - Posted by Eric (MI)
Posted by Eric (MI) on June 13, 2006 at 14:29:44:
I don’t understand why you are jumping right from a late payment on 7 properties to bankruptcy unless there is something else going on as well. Why not let a couple go into forclosure at worst? Have you contacted the lenders? Do you own them, as in you financed them or did you take them subject-to? Do you have any equity in them? There seems like there should be some way around this.
contact me by email. I might be able to help with a few of them.
Re: House of Cards - Posted by Joel
Posted by Joel on June 13, 2006 at 11:25:22:
Where in Indiana are they located? How much do you owe on them all currently? How long have you owned them? Rents? I might know someone who could take them off your hands.
Re: House of Cards - Posted by John Corey
Posted by John Corey on June 13, 2006 at 10:02:19:
How does having a lack of income translate into a full blown Chapter 7 BK?
What sort of cash reserves did you have prior to the vacancies?
Why go the BK route? What about contracting and other ways to get rid of part of the portfolio? Just how many properties do you presently own?
John Corey
Re: House of Cards - Posted by Ron
Posted by Ron on June 13, 2006 at 11:39:21:
Send me your email. They are located in Anderson Indiana
I am obviously very motivated to get rid of them
Ron
Re: House of Cards - Posted by Ron
Posted by Ron on June 13, 2006 at 10:15:08:
I own 15 properties in Indiana, and my bad, I didnt have the cash reserves to cover such a huge loss, but theyu had all been cashflowing for a long time. two bad months did me in though… The area that I have them in has over 350 properties like mine for sale, I have been trying to sell, but no luck. The offers are so bad that I would have to bring cash to the table.
Any ideas?
But why bankruptcy? - Posted by gerald(tx)
Posted by gerald(tx) on June 13, 2006 at 13:22:24:
I can see you having to let some properties go into foreclosure and damaging your credit big time, but how can two bad months translate into full blown BK?
I can see juggling the performing payments, having a few NODs, transferring ownership, etc, but it takes more than a couple of months. Explain the bankruptcy route.
gerald