Real Estate Investor woes etc. Wait of file?

[husky6767]

I bought several properties from an individual that secured the properties with his own mortgages. I am an idiot that I didn't see this - but oh well. The rental properties were distressed and impossible to maintain. He apparently didn't hold the mortgages himself - he was merely paying them on behalf of the previous owners. So now he is foreclosing on these and removing all the previous liens - he is buying them back this month at sherriff's sale. He has tenants in them and will be making good money on them. PLUS - he now can come after me for deficiency judgements!

Has anyone else fought this kind of scam? He has a high-powered lawyer and a judge that stamps all his judgements for him. It is almost organized moblike activity!

I have no assets - I have been unemployed since the end of March. Should I just file Chapter 7 in Oct. What tax implications could arise? He hasn't even touched my credit report - does this mean anything?

[Reddrocket07]

Im not sure about this, the best advice I could give you would be to consult with an attorney. Id also suggest running your story by media outlets to see if they would do a story on it. One of our local news stations in Ohio does a "story of the week" on people who get scammed. They confront the scammer in a public forum to seek restitution for the victim. In addition, I would contact your state's attorney general.

[uofaguy]

To add on to redrocket, I would consult with business bankruptcy attorneys - assuming the majority of your debt is business debt (the investment properties). Ideally, an attorney or firm that specializes in business BK and real estate.