I bought an old school building about three years ago, for $100,000.00. I thought that it was a good deal, since the school has about 27,000 sf on about 1.3 acre, in a relatively dense population area (the city and surrounding has a population of about 50,000). I intended to renovate it for use for education purpose, such as a private school or learning center.
I formed a LLC in order to buy this building, and obtained a commercial mortgage loan for 80K from a local bank for the purchase, but I was the guarantor of the loan.
However, things turned out not as I expected. During the three years, I divorced. I could not do anything related to my plan, and since I live more than an hour drive from the school, I could not take care of the school every day. As a result, there were lots of vandalism (many windows are broken).
Now I am tired and I want just walk away, taking a loss of approximately 40K (the down payment of 20K, plus interest on the loan , about 10K for some minor repair and upkeep during the 3 years, etc.). There is still a mortgage balance of about 70K. The loan in on the name of the LLC but I signed the mortgage and paid loan from my own money.
Can I just simply walk away? What must I do?
A note about myself: I am a college prof. but I came from another country so I am still learning. Although my financial situation is not stellar now, it is not devastating. I simply realized I made a mistake and just want to get rid of it, and I would be happy simply to walk away, despite the loss. Anyone who wants to buy this school building for the bank outstanding (70K) just let me know.
I very much appreciate your suggestions. William.
I formed a LLC in order to buy this building, and obtained a commercial mortgage loan for 80K from a local bank for the purchase, but I was the guarantor of the loan.
However, things turned out not as I expected. During the three years, I divorced. I could not do anything related to my plan, and since I live more than an hour drive from the school, I could not take care of the school every day. As a result, there were lots of vandalism (many windows are broken).
Now I am tired and I want just walk away, taking a loss of approximately 40K (the down payment of 20K, plus interest on the loan , about 10K for some minor repair and upkeep during the 3 years, etc.). There is still a mortgage balance of about 70K. The loan in on the name of the LLC but I signed the mortgage and paid loan from my own money.
Can I just simply walk away? What must I do?
A note about myself: I am a college prof. but I came from another country so I am still learning. Although my financial situation is not stellar now, it is not devastating. I simply realized I made a mistake and just want to get rid of it, and I would be happy simply to walk away, despite the loss. Anyone who wants to buy this school building for the bank outstanding (70K) just let me know.
I very much appreciate your suggestions. William.