Posted on: 19th Oct, 2008 08:09 pm
Hello,
I have a rental property in California that is seriously upside down.
I owe 1st & 2nd mortgage of $700,000 and the property is currently worth 400,000 tops. It has been refinanced and I do not live in it. I am struggling with the payments and have decided I may have to to let it go. I fear that I may face a judicial foreclosure in this case and would like to know if Chapter 7 is applicable to avoid a deficiency judgement in the event that the bank(s) go for such a filing. If so, at what point does the filing need to be done? Yes, I intend to seek professional help, but I am now trying to look into my options before making any rash decisions.
Thank you
I have a rental property in California that is seriously upside down.
I owe 1st & 2nd mortgage of $700,000 and the property is currently worth 400,000 tops. It has been refinanced and I do not live in it. I am struggling with the payments and have decided I may have to to let it go. I fear that I may face a judicial foreclosure in this case and would like to know if Chapter 7 is applicable to avoid a deficiency judgement in the event that the bank(s) go for such a filing. If so, at what point does the filing need to be done? Yes, I intend to seek professional help, but I am now trying to look into my options before making any rash decisions.
Thank you
hi jeremy,
you can file a chapter 7 bankruptcy when you feel that you will be unable to pay the debts any further. but i will suggest you to go in for a chapter 13 bankruptcy. it will help you to reorganize the debts. the lender will give you a new plan through which you will be able to pay off the debts. this will have a less impact on your credit score as well.
thanks.
you can file a chapter 7 bankruptcy when you feel that you will be unable to pay the debts any further. but i will suggest you to go in for a chapter 13 bankruptcy. it will help you to reorganize the debts. the lender will give you a new plan through which you will be able to pay off the debts. this will have a less impact on your credit score as well.
thanks.