LLC apartment loan is in my name...

[lss177]

Looking to file Ch 7; I'm a partner in an LLC that owns an apartment complex (with two other partners). Loan for complex is solely in my name (over $2 million); when I file BK will loaning bank automatically foreclose on apartment loan? Not sure if they will re-affirm such a large loan.

Any experience with this scenario?

Thanx.

[HHM]

First, why would you want to reaffirm such a loan?

There are several balls in the air with this scenario.
1st: how much is the complex worth? (more or less than what is owed)
2nd: What are the rights of the various members of the LLC, voting rights, percent ownership, etc. Is there an operating agreement, what happens if one of the members declares BK?
3rd: is the complex even worth keeping, does it have positive cash flow.

[lss177]

First, why would you want to reaffirm such a loan?

There are several balls in the air with this scenario.
1st: how much is the complex worth? (more or less than what is owed)
2nd: What are the rights of the various members of the LLC, voting rights, percent ownership, etc. Is there an operating agreement, what happens if one of the members declares BK?
3rd: is the complex even worth keeping, does it have positive cash flow.

1) The worth equals the mortgage balance.
2) I have a minority share; one partner has majority and cannot get it re-fi'ed into his name.
3) Cash flow is negligible.

Gosh, I think I answered my own post

Thanx.

[myid4u2c]

Do not reaffirm, the mortgage company will allow you to pay. They do not want this property back. The best part if you get discharge and ever let it go they can not come after you if you did not reafirm.

[frogger]

1) The worth equals the mortgage balance.
2) I have a minority share; one partner has majority and cannot get it re-fi'ed into his name.
3) Cash flow is negligible.

Gosh, I think I answered my own post

Thanx.

Amazing how clear the answer can be when you write it down isn't it?

[Mensa1]

2) I have a minority share; one partner has majority and cannot get it re-fi'ed into his name.

And you have 100% of the mortgage in your personal name with a minority share...? How come you and I didn't meet up before you hit the wall...?

Do you have a brother? Guys like you are hard to find.

Just kidding, but dang they did see you coming. Hopefully you have learned why you don't do such things.

And as stated previously, DO NOT REAFFIRM this mtg. The bank will continue to accept pymts. I'll bet they would even accept half of it in a short sale payoff too.