Posted on: 16th Jan, 2009 07:04 pm
Hello,
Me and my wife are in a bind. We purchased a new home in which we now live and also own a condo we leased but the tenant has defaulted and is not paying rent. We can not afford to pay the condo mortgage and it is worth about $100< less than what we paid for it. Our combined income is about $100k/year but our bills don't allow us to pay for the 2nd mortgage and using credit cards to has gotten us deeper into the hole. We have tried to come to an agreement with the lenders but they do not want to hear it. Can we file for Chapter 7, we are scared they will come after our new home. Our once spectacular credit is ruined :(. Any advice? Please help. Thank you. Desperate in Miami.
Me and my wife are in a bind. We purchased a new home in which we now live and also own a condo we leased but the tenant has defaulted and is not paying rent. We can not afford to pay the condo mortgage and it is worth about $100< less than what we paid for it. Our combined income is about $100k/year but our bills don't allow us to pay for the 2nd mortgage and using credit cards to has gotten us deeper into the hole. We have tried to come to an agreement with the lenders but they do not want to hear it. Can we file for Chapter 7, we are scared they will come after our new home. Our once spectacular credit is ruined :(. Any advice? Please help. Thank you. Desperate in Miami.
Hi Broke,
I can understand that you are going through a tough situation. As far as your payments for the condo is concerned, are you current on your payments? If you are current on your payments, then the lender will not accept your application for a loan modification, short sale or a deed in lieu. However, if you can negotiate with the lender properly, he may get ready for a short sale.
As far as bankruptcy is concerned, if you file chapter 7, then there are chances that your new house can be liquidated in order to pay off the creditors. You can try filing Chapter 13 in which you may not include your new home. Moreover you will also be able to save your condo. The lender will give you a new payment plan through which you will have to pay off the debts within 3-5 years.
Thanks
I can understand that you are going through a tough situation. As far as your payments for the condo is concerned, are you current on your payments? If you are current on your payments, then the lender will not accept your application for a loan modification, short sale or a deed in lieu. However, if you can negotiate with the lender properly, he may get ready for a short sale.
As far as bankruptcy is concerned, if you file chapter 7, then there are chances that your new house can be liquidated in order to pay off the creditors. You can try filing Chapter 13 in which you may not include your new home. Moreover you will also be able to save your condo. The lender will give you a new payment plan through which you will have to pay off the debts within 3-5 years.
Thanks
If you investment property is foreclosed on that has nothing to do with your primary residence.
A bankruptcy is a serious matter... as is a foreclosure, but I would do some research and possibly consult legal advice before making a decision. Just keep making payments on your primary residence and your home will be secure no matter what happens with your investment property.
A bankruptcy is a serious matter... as is a foreclosure, but I would do some research and possibly consult legal advice before making a decision. Just keep making payments on your primary residence and your home will be secure no matter what happens with your investment property.
