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    BK 13, Foreclosure & Investment Property

    We have retained an attorney for BK 13 filing and will pay him his fee and start the proceedings here in AZ very soon.

    We have a situation that I have been wondering about:

    Our home (bought 17 yrs ago) and the tri-plex we own (which pays for itself) sit on the same rectangular-shaped piece of property, although they are separate tax codes. The house, which sits about 300' from the street, originally owned the entire lot, but when the property was sub-divided to build the tri-plex many years ago (not by us), the house was left with about 1/4 of the back-end of the property and the apartments with 3/4 of the front-end (street end) of the property. The house has virtually no extra property left (except for the garage) for parking, etc. In fact the cement slab leading into the garage, is on the apartment's property. The house is accessed by just a long driveway leading directly into the garage.

    If our home were to go into foreclosure, we would live on the apartment's property in our travel trailer, or have a tenant move out and live in one unit. But, we would certainly use all the property that belongs to the apartments for parking, storing our travel trailer, my sister's travel trailer, storing wood, etc. We could literally be living "right on top" of any new house owner. They, in essence, could not use any property outside of their fence. A prisoner in their own home....so to speak!

    So, my question is:

    Could the house be deemed "somewhat worthless" due to these facts. I might add, that when we bought the house (we did not buy the apartments until 8 years later), we did use the apartment's property for our own parking, storage of the travel trailer, etc. since the apartment's owner did not object to our use.

    I can't imagine anyone wanting to buy the house with this set-up. The ideal package is for one to buy the house/apts together (our plan to sell back then for retirement when times were good) but we aren't selling the apts.

    What do you think this situation will do to the value of the house? We owe $129K on house ($1500 per month-15 yr note) and it is valued at $134K.

    I guess I am kinda hoping the house is deemed "worthless", cannot be sold by the bank because no one wants it, so then they will let us rent it back from them at a good rate instead of it just sitting empty..

    Curious as to your thoughts!

    2BetterTimes....cheers!

    #2
    Originally posted by 2BetterTimes View Post
    We have retained an attorney for BK 13 filing and will pay him his fee and start the proceedings here in AZ very soon.

    We have a situation that I have been wondering about:

    Our home (bought 17 yrs ago) and the tri-plex we own (which pays for itself) sit on the same rectangular-shaped piece of property, although they are separate tax codes. The house, which sits about 300' from the street, originally owned the entire lot, but when the property was sub-divided to build the tri-plex many years ago (not by us), the house was left with about 1/4 of the back-end of the property and the apartments with 3/4 of the front-end (street end) of the property. The house has virtually no extra property left (except for the garage) for parking, etc. In fact the cement slab leading into the garage, is on the apartment's property. The house is accessed by just a long driveway leading directly into the garage.

    If our home were to go into foreclosure, we would live on the apartment's property in our travel trailer, or have a tenant move out and live in one unit. But, we would certainly use all the property that belongs to the apartments for parking, storing our travel trailer, my sister's travel trailer, storing wood, etc. We could literally be living "right on top" of any new house owner. They, in essence, could not use any property outside of their fence. A prisoner in their own home....so to speak!

    So, my question is:

    Could the house be deemed "somewhat worthless" due to these facts. I might add, that when we bought the house (we did not buy the apartments until 8 years later), we did use the apartment's property for our own parking, storage of the travel trailer, etc. since the apartment's owner did not object to our use.

    I can't imagine anyone wanting to buy the house with this set-up. The ideal package is for one to buy the house/apts together (our plan to sell back then for retirement when times were good) but we aren't selling the apts.

    What do you think this situation will do to the value of the house? We owe $129K on house ($1500 per month-15 yr note) and it is valued at $134K.

    I guess I am kinda hoping the house is deemed "worthless", cannot be sold by the bank because no one wants it, so then they will let us rent it back from them at a good rate instead of it just sitting empty..

    Curious as to your thoughts!

    2BetterTimes....cheers!
    It is either valued at 134K or it is worthless, or it is somewhere in between. They won't "deem" it worthless unless they can't sell it. Someone will buy it at some price when they foreclose, then maybe later on you can buy it back.

    Good Luck!
    Wife Laid off - 11/16/2009 Missed First Payments - 12/5/2009
    Filed Chap 7 - 12/31/2009
    341 - 2/12/2010
    Discharged - 4/19/2010

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