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    To file or not to file...

    This is confusing for me, sorry if it is confusing for you. My head is so screwed up right now that I can barely think.

    A friend of mine convinced me to invest in some properties that he would manage. By taking out a HELOC out on my home, I bought 7 single family homes. I left it too my friend to arrange everything. That was part of the deal. I came up with the money, he did all the work. Well, he arrange a private second mortgage for one of the homes. Obvously, everything ended up in disaster. The home is now bank-owned but I the holder of the 2nd is going after me aggresively. (Now here comes the hard part.) I had a total of 7 homes. Some will be short-sold and others have been taken by the bank. I have one lender trying like crazy to help me keep one house. But, I am not sure if my health can take the process. I have a $200,000 HELOC on my house which I somehow cover every month. I can make all my bills every month that are related to my own private life. Anything that is associated with my rental properties, I don't pay. I even have some money left over at the end of some months to put towards the expenses of more expensive months. We gross about $10.5K a month, net about $8K. Which, before this whole mess, I thought was a fine living. Now we have this holder of the PMI freezing our checking account with $2,000 in it. We owe this person $25,000. I could borrow $15K from my brother and hope this guy accepts. Or, I could set up a payment plan. I think I could afford $200/month. But, with all the money I owe to the Home Owners Associations, 1st and 2nd Mortgages, and utilities companies associated with the investment properties, am I just prolonging the inevitable? Is it time for me to file?
    Yes, I have gone to see 2 attorneys. Of course, they tell me to file.
    I also have consulted with 2 real estate attorneys who say that once a house if foreclosed up in Florida that they have never seen a bank chase anybody down. Or, for that matter, a HOA.

    I am so confused. And thanks for reading all of this.

    #2
    Welcome to BK Forum, abe - glad you found us!

    Are you trying to decide whether to file bankruptcy? Or are you hoping to ride the storm out until all the short sales and foreclosures are over and see where you stand?

    Some "friend" you had - looks like his can't fail deal pushed you right into financial disaster. Did you two set up a business (s-corp or other official financial structure) for this venture?
    I am not a lawyer and this is not legal advice nor a statement of the law - only a lawyer can provide those.

    06/01/06 - Filed Ch 13
    06/28/06 - 341 Meeting
    07/18/06 - Confirmation Hearing - not confirmed, 3 objections
    10/05/06 - Hearing to resolve 2 trustee objections
    01/24/07 - Judge dismisses mortgage company objection
    09/27/07 - Confirmed at last!
    06/10/11 - Trustee confirms all payments made
    08/10/11 - DISCHARGED !

    10/02/11 - CASE CLOSED
    Countdown: 60 months paid, 0 months to go

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      #3
      Originally posted by lrprn View Post
      Welcome to BK Forum, abe - glad you found us!

      Are you trying to decide whether to file bankruptcy? Or are you hoping to ride the storm out until all the short sales and foreclosures are over and see where you stand?

      Some "friend" you had - looks like his can't fail deal pushed you right into financial disaster. Did you two set up a business (s-corp or other official financial structure) for this venture?

      Yes, I am trying to decide if I BK. I have been riding the storm for over a year now and it has been tough. But, I have almost no bill collectors calling or sending me threatening letters. Just sales dates.

      My friend and I did not set up a business. He just managed my properties and set up the so-called deals. At the end, if there was a profit. We had a pre-arranged split. Of course, there is no split on a loss.

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        #4
        I'd hold out for the short sales and see if that clears out most of the problems if your health can take it.

        I struggled for almost 2 years with a lot of prayer until I declared bankruptcy, it can be hell I know. I found a lot of peace the day I decided, and more came as I actually filed, then had the 341 and finally was discharged.
        May 31st, 2007: Petition Filed by my lawyer
        July 2nd, 2007: 341 Meeting Held
        September 4th, 2007: Discharged and Closed.

        Comment

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