What's going to happen to my houses?

[cosmicmama]

Again, attorney and his paralegal are not really helpful when I have questions. Paralegal says "you need to keep making those mortgage payments" without really listening to my dillema.

I have three houses, all rented out. I have lived in all of them as some point, I would buy a new house and rent out my old one, bought these three in a five year period of time with the intention of having renters pay my mortgages to build a retirement for myself.

My business went bad this past spring and I have since closed it. My husband has been unemployed for months. I have used some of the rent payments from my tenants to pay living expenses, therefore have gotten behind on mortgages.

One house is current, one is five months behind, one is three or four months behind. The one that is three or four months behind, I am planning on moving back into. (I am renting a house in a different area right now). The one that is five months behind is in pre-foreclosure, I am past the point of them working out somehting with me, they want me to pay all the arrearages to bring the loan current before they will stop the foreclosure. I haven't gotten a foreclosure letter or a date yet. I'm hoping my attorney will have my 3 ready to file in a couple of weeks.

What exactly is going to happen? will the bk stop the foreclosure? then will I have to work out something with the bank, or will it be worked out in my plan a way for me to catch up these mortgages?

I am planning on keeping all the houses, but not dead set on it. I do need to keep at least one to live in. None of them have any equity, nor do they have 2nds that can be "crammed down".

[StartingOver08]

It is hard to tell without your specific information: actual current value of each home, mortgage amount, income etc,

How upside down are each of the properties, if any?
What does it cost to carry these properties each month (do you have to contribute monthly over above the collected rent or not)?
Are your rents market rents? Above market? Below market?

There are a lot of factors to provide a plan...are you speaking only to the paralegal? What did your attorney say about keeping all three properties when you hired him?

[cosmicmama]

It is hard to tell without your specific information: actual current value of each home, mortgage amount, income etc,

How upside down are each of the properties, if any?
What does it cost to carry these properties each month (do you have to contribute monthly over above the collected rent or not)?
Are your rents market rents? Above market? Below market?

There are a lot of factors to provide a plan...are you speaking only to the paralegal? What did your attorney say about keeping all three properties when you hired him?

All homes are just about at break even equity...ie. I owe on each one of them about the same thing they are worth. Rents are also right about break even....I collect in rent almost exactly what my mortgages are. Also, all rents are market rents.
When I hired my attorney, all he said was that I needed to file a 13 in order to keep my properties, and also I have tax debt that a 7 wouldn't deal with. He said that since there was no speakable equity in any of the houses, the court wouldn't be interested in them. I just want to know how the arrearages are going to be dealt with when I file, and if I should be sending in payments now, even if the banks say that making payments at this point won't stop the foreclosure (unless I completely catch up all that I'm behind).

[cosmicmama]

Please, does anybody have an answer? What happens to a house that I'm 5 months behind on and is in preforeclosure when I file 13? Am I going to get the chance to catch up on the payments in the bankruptcy?

[UpsideDownMI]

bk will stop the foreclosure. You can pay the arrears in your plan. Think very hard about surrendering the rental properties. It will be very difficult for you to successfully complete your plan if your are carrying extra debt that you don't need to carry. If you have tenant issues during your plan, your case will be at risk.

[biotechsolution]

I can't imagine the trustee will allow you to use your payments for arrears of 2nd and 3rd homes to considered in your disposable income.
If your rent payments make you break even you might be able to keep them but remember you won't be able to have any expenses related to the extra homes put into your payment amount.

Bottom line.......you won't be able to pay your 2nd and 3rd home arrears in the plan. You also won't be able to use the arrears to offset your disposable income when you determine your payment.
If you wanted to keep the 2nd and 3rd homes they would have to have been current when you filed.