BK to get rid of unwanted real estate.

[arkcom]

I have a house 4+ hours away from me that I want to get out from under. It is run like a boarding house, and my now ex manager let it get to only 2 tenants, which is not enough to cover utilities, let alone mortgage, taxes, and insurance. There are no other managers in the town and I can't deal with it long distance.

I owe about 75k and it is worth maybe 85K.

The 2 attorneys I have talked to said that as soon as I file, all of these headaches become the trustee's. He will be responsible for upkeep and utilities and all expenses.

I don't think this is necessarily the case, and even if it is, the trustee will probably dump it back on me when he decides not to sell it. I feel like the attorneys are salesmen telling me what they think I want to hear rather than what will really happen.

I'm wondering if I should do a deed in lieu before the bk to make sure it is gone for good. Lender is IndyMac.

Thanks

[justbroke]

Consult with a few more attorneys and listen to them. The Trustee will probably want the property to sell if you have equity and you don't exempt the enough of the equity to interfere with a clean and profitable sale. In either case, you could literally abandon the property, but you still have serious liability issues unless and until the property is out of your name.

I don't know of one bank/lender that will take a deed-in-lieu (DIL) unless the property has been on the market for some time. Additionally, most require some sort of financial problems and require paperwork for a DIL.

There is just no easy way to get from under a property these days. If you really want it gone, hire a Realtor to sell the property (since there is some equity).

[Slingerland]

arkcom, you're welcome to PM me... I'm in central Arkansas... I can tell you a couple of attorneys to avoid, and it sounds like you've been talking to them!

[keepsmiling]

Do you have other debts you need to get rid of? is this it? IOW, what's the big picture here?
Is your value estimate pretty on the money? Where did you get it? What's your income situation and how does it fit in median for your state?
If this is it, it makes more sense to sell it, even if you have to take a small loss. BK is a cannon which isn't the right tool when you only need a pistol.
The info you got is .... hmmm.... very surface level. The tt very well may not want your house with such a small amount of equity, and it could be a very drawn out headache.
Btw WELCOME to the forum

[arkcom]

Thanks so far.
No realtor wants to deal with it. One I talked to thought it was only worth what is owed. But, I don't think so.
I'm self employed and my gross income including rents from this house is $1200 (6mo avg).
I have about 40k in dischargable debts.
About 22k that aren't.

[arkcom]

arkcom, you're welcome to PM me... I'm in central Arkansas... I can tell you a couple of attorneys to avoid, and it sounds like you've been talking to them!

Looks like I need more posts before I can PM.

[keepsmiling]

1200 a month??? Is that a typo? Or are you subtracting payments to this mtg and your unsecured debt?
Chances are this asset would be abandoned if realtors won't touch it.

[arkcom]

No typo. That's really my gross. Before this mortgage. Stopped paying 2 credit cards a year ago. Still Current on the rest.

I also have a property I want to keep, that is going to cause problems. I bought it a couple years ago for $23k and owe about $17k. The county claims it is worth $94k.

Talked to a 3rd attorney. Said the same thing about the house I want to abandon. They really don't like to hear your talking to other lawyers.

[keepsmiling]

It's very hard to help you while just getting bits and pieces of info. I know you are new to this but there is a lot involved in deciding which route to take.
You need to check Ark exemptions to see what you are allowed to exempt. This property you want to keep... is it your residence?
Try to give us as much info as you can at once, including what your non-dischargeable debts are.
You may not be able to have your cake and eat it too... but maybe we can brainstorm some ideas. We just need the info to do so

[arkcom]

Yes it's my residence. I will use federal exemptions as Arkansas only allows homestead for couples and very little private property.

Student loans and loans with a cosigner (technically discharged, but I will still be paying it).

Been applying (and interviewing) for jobs for about a year. I will get a lot less picky after filing.

[keepsmiling]

If you are single and have as much equity as you say... you may be screwed or forced into a 13. Sorry to say it's not sounding good .

You MUST get a realistic idea of the quick sale value of your home before you proceed.

On 1200 a month how can you pay mtg and taxes? and eat? and pay cc's?
This may not be a good time to file.

[keepmine]

Stopped paying 2 credit cards a year ago. Still Current on the rest.

Why on earth are you still making payments on cc's hat you'll discharge in bk?
You need to get some sort of job right now .

[arkcom]

If you are single and have as much equity as you say... you may be screwed or forced into a 13. Sorry to say it's not sounding good .

You MUST get a realistic idea of the quick sale value of your home before you proceed.

On 1200 a month how can you pay mtg and taxes? and eat? and pay cc's?
This may not be a good time to file.

I'm sure it's closer to the 17k I owe than the county's 94k. One lawyer said I had to get an appraisal, the other said a BPO should be good enough.
As far as living on that, I spend nothing on luxuries and borrowed from cc and family to pay the mortgage on my rental some months.

Stopped paying 2 credit cards a year ago. Still Current on the rest.

Why on earth are you still making payments on cc's hat you'll discharge in bk?
You need to get some sort of job right now .

Sorry about that. By the rest I meant the card with a cosigner, student loans and 2 mortgages.

Bankruptcy was not an option I had considered at all until last week, after I fired my manager. Been trying to get the rental sold to settle the late cards. I'm now being sued by one of the cards, so settling is not likely at this point.