Forclose or File? Which first?

[MoneyPit]

Hello everybody. I just want to say how glad I am to have found this forum. Everyone here seems very helpfull. I hope I can return the favor when my ordeal is done.
I've been mulling over forclosure/CH7 for some time now. After searching the forum I am still a little uncertain on which way to start. A little history first. I'll try to keep it short...

About 3+ years ago before the market tanked I picked up 3 houses intended as investment properties. Well, Like so many others, I am now underwater on all of them and loosing money by the minute. One is currently empty and the other 2 are negative profit. Every time I turn around I am charging more and more on my credit card to keep these boat anchors afloat. I can't do it anymore. I can give more detail if needed.

It seems to me there are 2 schools of thought here.

1)Let them forclose and file CH7 if they go for a deficiency - or-
2)Just file CH7 and take one single credit hit.

Which is the best first step?

ps. I'll be seeing some lawyers this week. I just wanted some personal experiences and advice before I start this.

[justbroke]

1)Let them forclose and file CH7 if they go for a deficiency - or-
2)Just file CH7 and take one single credit hit.

Take the single credit hit.

However, each situation is unique, and you may have other issues (lawsuits, inheritances) that may play into your Bankruptcy Planning.

[StartingOver08]

I agree with JustBroke.

If at all possible file BK before you get the foreclosures.
Unless you have an income situation you are 'waiting out' or charges and/or balance transfers on your credit cards.

[relief13035]

Welcome to my world. I also purchased 3 rentals, thinking I was setting myself up for a great retirement someday. We filed Chapter 7 and are letting 2 of the rentals go. We are keeping the 3rd only because my mother-in-law lives in it.

Just take the hit, you will feel so much relief not worrying about those properties.

[Duke89]

We were in a similar situation with our house that was a rental and decided to do the CH7 route first. No matter how we looked at we always came back to the CH 7 route. It's easier to just jump in and get it done and save yourself a few months of extra stress and worry.

[MoneyPit]

Thanks for the replies.

I was leaning toward the CH7 before forclosures. I just read so many threads on here that I made myself more confused

I think I am in the exact same situation as relief13035. Only I want to get rid of all 3. I too had dreams of setting myself up for a nice retirement. But it turned out to be setting myself up to be broke for the rest of my life.
It's a very tough decision. It's nice to know that others have made it through.

How long is/was your credit trashed for?

[TEW]

Thanks for the replies.

I was leaning toward the CH7 before forclosures. I just read so many threads on here that I made myself more confused

I think I am in the exact same situation as relief13035. Only I want to get rid of all 3. I too had dreams of setting myself up for a nice retirement. But it turned out to be setting myself up to be broke for the rest of my life.
It's a very tough decision. It's nice to know that others have made it through.

How long is/was your credit trashed for?

BK stays on your CR 10 years but you can get ti cleaned up in a year or two. you should be about to buy a house again in 2 or 3 years.

[BillyRip]

Welcome to my world. I also purchased 3 rentals, thinking I was setting myself up for a great retirement someday. We filed Chapter 7 and are letting 2 of the rentals go. We are keeping the 3rd only because my mother-in-law lives in it.

Just take the hit, you will feel so much relief not worrying about those properties.

How are you keeping this in a 7? Are you "moving in"?