btpowell
07-14-2008, 05:43 PM
I recently filed for chapter 7 and have my 341 in August. What brought me to my situation is a series of bad tenants. I however, currently have a tenant who pays me rent and is not in the position to buy the house from me. Should I ammed my filling and have another buy the property on a short sale, or let the property go and have the tenant fend for himself? Whae are my options to help keep the tenant in the house without me as the landlord, (as I have included all mortgages in the filing b/c other properties are now vacant)?
Priceless ProSe
07-14-2008, 06:01 PM
May I ask if you are current on the mortgage for the house with the good tenant? If you are recieving rent for any property and not keeping up with the mortgages it is known as "rent skimming' and its a no-no. Just a heads up.
Why would you have to ammend in order to sell the house as a short sale? The short sale would likely take some time, you have to list, find a buyer (not easy right now), and get approval from the investors. It wouldnt bring any money to the creditors so I dont see why it would hold up ur BK. I think this whole deal is more between you and the bank in regards to the house.
The tenant will be ok, just let them know ASAP if you are going to let the house go, it will give them more than enough time to find a place and get out. Also, if you dont give them adequate notice you could be looking at litigation later on. I have even heard of banks keeping tenants on properties that would normally only be bought for investment (renting out). For example, If you have a four-plex full of tenants and get forclosed it wouldnt make sense for the bank to kick these people out, they could collect rent from them until a buyer was found, also the property would look better to investors if it was already occupied (depending on the tenants of course).
What did you put on the intention schedule for the properties?
