non consumer chapter 7

[fatty]

I am working through my debts and classifying consumer / non. my cc is easy = consumer
now here are some questions.

1. current rental - owe 200,000. value 190,000. so what is my debt that I use to 'qualify' for non? 200g, or the 10g shortage?

2. past rental already foreclosed on. Bank has possesion, may have already sold it? credit report shows $187g mortgage. Of course if they already sold it, that should be offset by the sale. So what do I list in filing? the 187g? or some other #, which where would I get?


thanks

[HHM]

1. Was the rental "bought" as an investment property. The issue is what was the original intent of the loan. E.g. if you bought the house and lived in it initially (hence your mortgages would be primary residence mortgage), then the debt is consumer even though you are now using the house as a rental.

2. Same issue as 1.

Assuming they are both investment property loans, and hence non-consumer. The amount for #1 would be the total balance due. If you owe $200,000, that is $200,000 in non-consumer debt. As for number 2, technically, the amount would be the deficiency, not the total balance. Since the home is already foreclosed, the lender has exercised some sort of set off (you just don't know what it is), the only LIVE debt against you would be the deficiency.

[fatty]

Yes they are both purchased as investment, never occupied or claimed as such.

So the only question then is what do I claim for the one that was already foreclosed on? Do I just claim the entire amount, or is that going to cause me issues? I will still qualify for Non consumer even assuming just a 10 or 20g loss (LIVE debt as you put it). Otherwise, how find out deficiency in a timely manner?

thanks again hhm

[HHM]

You probably need to look up, or get a hold of the foreclosure sale document. That should tell you what was bid. Odds are, the bank was the only one to bid, so you just use the balance you owed minus the bid amount.

At some point, you will probably get a 1099-A, that will tell you.

Third, you could just call the lender.