Posted on: 30th Jun, 2008 12:39 pm
My husband and I bought a business 2 years ago when I was 24. It was a small country store in rural Vt.
Over the course of 2 years we fought hard to build it up, but it just kept sinking and finally we made the decision to close it this June. The mortgages on the building haven't been paid in almost 3 months and the bank is definately threatening foreclosure. We want to try to come out as clean as possible we already owe some companies alot of money and are trying to work out payment plans. We are sole proprietors so we are personally responsible for the failure of the business and the repercussions from that.
Meanwhile we haven't gotten any official foreclosure notice yet the bank has been sent in to take pictures of the building and has had a environmental company come in and make sure thier are no hazards, all in the event that they will be foreclosing. Does anyone have any advice on the best way to deal with this to come out as clean as possible. I think our state is a deficiency judgement state, and our banker has mentioned that the bank would want to get rid of the property before winter to avoid heating costs, so I suspect they would just auction it off and stick us with a bill. Are thier other ways to handle this? Can we ask for a deed in leui of and will that release us from this?
Thanks for any advice that comes my way.
Jacqui
Over the course of 2 years we fought hard to build it up, but it just kept sinking and finally we made the decision to close it this June. The mortgages on the building haven't been paid in almost 3 months and the bank is definately threatening foreclosure. We want to try to come out as clean as possible we already owe some companies alot of money and are trying to work out payment plans. We are sole proprietors so we are personally responsible for the failure of the business and the repercussions from that.
Meanwhile we haven't gotten any official foreclosure notice yet the bank has been sent in to take pictures of the building and has had a environmental company come in and make sure thier are no hazards, all in the event that they will be foreclosing. Does anyone have any advice on the best way to deal with this to come out as clean as possible. I think our state is a deficiency judgement state, and our banker has mentioned that the bank would want to get rid of the property before winter to avoid heating costs, so I suspect they would just auction it off and stick us with a bill. Are thier other ways to handle this? Can we ask for a deed in leui of and will that release us from this?
Thanks for any advice that comes my way.
Jacqui
Hello Jacqui.
Sorry to hear your situation. So have met with your attorney? what have he said? Will the "Assignment for the Benefit of Creditors" help in your situation? Please let us know about it.
Sorry to hear your situation. So have met with your attorney? what have he said? Will the "Assignment for the Benefit of Creditors" help in your situation? Please let us know about it.
I am meeting with him in a few hours, I will let you know!
Hi I met with our attourney. He basically is handling all the 'summons' stuff for us, it cost about $1500 dollars. What I got out of what he was saying is that by using him he can stall the process with the foreclosure by suggesting that we are going to go chapter 13 bankrupsy witch gives us time to sell or lease out the building and catch up the mortgages and etc. He did say that chapter 13 would cost about $1500 and the payments could be around $2000 a month. That was concerning, we aren't the kind of people who are going to be able to make $2000 payments if it goes to bankrupsy, maybe this was an exxageration, does anyone know if bankrupsy goes by a percentage of your income? Or do they give you ridiculous payments?
Welcome back Jacqui.
You are registered member of this community then why are you posting as a Guest :) By the way if you are approved for chapter13 then you will be offered an affordable repayment plan. The monthly payment will not be un-affordable in the chapter 13 plan. If the repayment plan seems un-affordable to you then what the use to file chapter13. Have you asked your attorney about "Assignment for the Benefit of Creditors". what about that option? Talk with attorney on this and let us know.
Good luck.
You are registered member of this community then why are you posting as a Guest :) By the way if you are approved for chapter13 then you will be offered an affordable repayment plan. The monthly payment will not be un-affordable in the chapter 13 plan. If the repayment plan seems un-affordable to you then what the use to file chapter13. Have you asked your attorney about "Assignment for the Benefit of Creditors". what about that option? Talk with attorney on this and let us know.
Good luck.
Thank you so much for your support. I will ask him next about assignment for the benefit of creditors.
Maybe I was confused when he said something about bankrupsy for us could cost about 2,000 a month. I was so preoccupied with everything I didn't make him clarify. I should of though, because as 2 average people 2,000 is ALOT of money! I will mention the assigment for the benefit of creditors and let you know.
Maybe I was confused when he said something about bankrupsy for us could cost about 2,000 a month. I was so preoccupied with everything I didn't make him clarify. I should of though, because as 2 average people 2,000 is ALOT of money! I will mention the assigment for the benefit of creditors and let you know.
I have a woman that is interested in leasing the business. She wanted to buy it previously but couldnt obtain financing. In order to Lease it I would have to hae a $25,000 down payment to catch everything up. Also her payments would have to match the 2 mortgages with the bank.
For 1 is it normal to charge such a big deposit?
For 2 Would I charge interest?
Any advice on this would be great
For 1 is it normal to charge such a big deposit?
For 2 Would I charge interest?
Any advice on this would be great
Hello jaden.
Are you talking about owner financing. If so then he will pay you a certain share of the amount. By the way if you are going for owner financing then you need to pay off the mortgage company in full.
Are you talking about owner financing. If so then he will pay you a certain share of the amount. By the way if you are going for owner financing then you need to pay off the mortgage company in full.
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