real estate investor heading to BK

[realestatebust]

[HHM]

You need to seek out an experienced BK attorney...reason being, if more than 50% of your debt is non-consumer debt (i.e. mortgages on investments properties), the means test is no longer applicable, and you can still file BK-7 not withstanding your income. Also, rental income is a wash anyway, because that money gets funnelled back into the mortgages...so even though that money is income, you also have the "mandatory" expense of those investment properties.

[Itried]

Me too Investor in HOT Water

Hello fellow investor!

I too am in the process of filing a Business - Chapter 7 because over 50% of my debt is secured properties. I plan to surrender all except my primary. Most attorney's don't understand your situation and you will need to ask around for a referral for an attorney that specializes in complicated BKs. There are quite a few of us on this forum, but we have to go this route because most of us have high incomes, but huge debts (mortgage). I thought I was going to have to do a 13 and I was nervous until I finally talk to an attorney that knew there stuff and put me in a 7 in about 20 minutes of talking. Don't fall for the let them go into foreclosure and then file. You will only mess up your credit worst than it already is. I am still a little nervous, never thought I would be here. It is a good thing I am young enough to learn from and hopefully move on. Let's keep in touch!!

I am not a lawyer, just sharing my experiences

[gophermn]

I am in the filing process and have been there the last 4 months. Don't ask why (lets just say incompetant attorney). Anyway part of my filing is a rental and is close to a Sheriff Sale. Not by choice I HAVE to let it go to foreclosure becaue my tenants decided they no longer need to pay rent.
So in a nutshell one year ago today I was sitting on a 700-715 credit score. Today I am lighting up the 30/60/90 days delinquent and watching the beacon score drop as fast as the temperature in MN.

[Itried]

I cannot even bare to look at my credit at this point. I have one property in CA (I am in Georgia)that has not been paid in almost a year. I received the NOD with the 90 days to foreclose letter, but I have seen a sheriff sale date yet. How soon should that come? I really want to file before that date. Do you think that it would even matter. I am trying to hold out another 90 days becasue of a bonus I received and spent in Dec.

[gophermn]

I cannot even bare to look at my credit at this point. I have one property in CA (I am in Georgia)that has not been paid in almost a year. I received the NOD with the 90 days to foreclose letter, but I have seen a sheriff sale date yet. How soon should that come? I really want to file before that date. Do you think that it would even matter. I am trying to hold out another 90 days becasue of a bonus I received and spent in Dec.

I got the NOD in early November and the Sheriff Sale will be 01/31/08. Try working with them on a payment plan or loan modification. That might slow things down a bit.

[realestatebust]

My score was 720 a year ago now it around 660 and falling like a rock. What sucks is my wife has some of the unsecured business debt in her name so her score which is around 780 is about to nose dive. isnt this just fun fun fun.. played the real estate game and lost. Now i'm just trying to get out and keep my primary house.

[gophermn]

Yea, my brother filed before the new laws and he is getting loans - credit cards and sitting on a 720 credit score. Meanwhile my Debt Income was upside down, nobody would give me a dime and my payments were falling behind.
My brother buys a new truck and I end up surrending mine. Gotta love it.

[realestatebust]

I refied my truck with a credit union last month. The first atty told me i wouldn't be allowed to reaffirm a 600 amonth truck payment so its now 415..I still want to try and keep my truck, but if it comes down my house or truck i'll just have to get another vehicle.

A friend of mine filed back in oct 05 and now he's flying good again. He too had real estate properties and let them go and just bk. Now he owns another business and yah he kept his denali some how.

[gophermn]

Denali - woohoo there is light at the end of the tunnell. Love the trucks but I am going to concentrate and focus my wine & cheese taste on a mac-n-cheese budget :-)