How should rental income be handled before foreclosure and BK

[bellessima]

I have 2 rental properties that are going into foreclosure.

I am still collecting rent. How should this be disclosed as I will be filing Chapter 7 in December.

What is the best way to prodeed?
thank you

[AngelinaCatHub]

OK, my opinion: what have you been doing with this before? Like last month? Do the same. I would be careful if you advise your tenants of this fact, they may not pay you in the future. More than likely they will end up staying and paying the mortgage holder the rent.

If you wish to use this money for your attorney or food and other essentials, this is allowed. Don't go using it for any luxury items at all. Stop using credit cards of course. If you have lurked here long you know all this stuff. Check out the "stickies" at the beginning of every forum. They are very informational and will answer many questions for you. 'Hub

[bellessima]

OK, my opinion: what have you been doing with this before? Like last month? Do the same. I would be careful if you advise your tenants of this fact, they may not pay you in the future. More than likely they will end up staying and paying the mortgage holder the rent.

If you wish to use this money for your attorney or food and other essentials, this is allowed. Don't go using it for any luxury items at all. Stop using credit cards of course. If you have lurked here long you know all this stuff. Check out the "stickies" at the beginning of every forum. They are very informational and will answer many questions for you. 'Hub

Thank you.

Prior this money was used towards mortgage payment and the HOA. I was always in the negative.
Should I deposit this money or just cash it?What is best here?

Also, can I use this money to purchase cashiers checks(6 months worth) to pay for my mortgage on the home I am keeping so I am not to strained after they foreclose and after the filing?

Am I allright to have these two investment properties foreclose before I file? I am in Az

Thank you for your response
with appreciation

[AngelinaCatHub]

Thank you.

Prior this money was used towards mortgage payment and the HOA. I was always in the negative.
Should I deposit this money or just cash it?What is best here? Well, both are the same. You CANNOT hide anything. A Cardinal sin. However, you can use it for essentials. Payment up front on rent of what? The foreclosed property, or your house you wish to keep? Need more info here.

Also, can I use this money to purchase cashiers checks(6 months worth) to pay for my mortgage on the home I am keeping so I am not to strained after they foreclose and after the filing? Again, which place are you wanting to pay up front? If it is your own house that you would keep, I would go into the mortgage company and pay them a lump sum with a signed agreement that this is advanced mortgage payments or they will tack it on the end of your principle.

Am I allright to have these two investment properties foreclose before I file? I am in Az I know nothing about local AZ bk. I go by the Federal Standard and of course I do not represent knowing any law at all. Everything is opinion.

Thank you for your response
with appreciation

Best suggestion: Get the C7 book on nolo.com. About 17 bucks download in pdf. Worth its weight in 'forgiveness'. 'Hub