Need advice on worthless investment property
Sorry for the long post, but I hope you'll take a few minutes to read it and give me some much needed help.
In early 2007, I purchased 3 investment properties (pre-development lots) that turned out to be a very bad investment.
One property was in the mountains and I traded it for a condo in Florida that I am currently renting that barely covers the expenses.
The other two properties are in SC and are nearly worthless because the developer won't continue with the improvements of the community. The county doesn't have the money to force the bond and the lawyers want $1500 per property owner just to get a lawsuit started. I bought each at 140K and I have one listed for 29K with zero offers.
I stopped paying on the two SC lots and I'm approaching the 90days late mark. I know other owners that are 5 months late and the bank isn't starting foreclosure. They are either backed up or realize the property is worthless.
The only other debt I have is a single mortgage on my home. I don't have anything else of value. My car is only worth about $4000.
I recently got married and my wife owns a townhouse that is worth about 100K and she owes 140K. We are currently renting that for a $250/mo loss.
We live in Georgia.
My Income: 106K
Wife Income: 40K
My House: owe 240K -- Appraised at 275K
Wife's Townhouse: owe 140K (two mortgages making a short sell very hard) -- Last one sold at 100K. Currently renting for 950/mo.
Two Lots: owe 280K -- Nearly worthless
FL Condo: owe 100K -- Traded for a value of 125K, but the last one sold at 100K. Currently renting for $750/mo.
Neither of us have a car payment. My wife has about 10K left on student loans. I know that remains after a bankruptcy. Neither of us have credit card debt.
Wachovia holds both loans for the SC lots. I anticipate they will wait 6 months or longer before foreclosing. They will eventually get a deficiency judgment and garnish my wages.
So my questions:
1) What would you do? I just want to start over and live a financially simple life. No more real estate for me. Our primary house is all we want to keep.
2) I'd like to file Chapter 7. Can I classify my debt as primarily business debt since they were investments?
3) If Chapter 7 won't work, what would be a typical outcome of Chapter 13 for me?
In early 2007, I purchased 3 investment properties (pre-development lots) that turned out to be a very bad investment.
One property was in the mountains and I traded it for a condo in Florida that I am currently renting that barely covers the expenses.
The other two properties are in SC and are nearly worthless because the developer won't continue with the improvements of the community. The county doesn't have the money to force the bond and the lawyers want $1500 per property owner just to get a lawsuit started. I bought each at 140K and I have one listed for 29K with zero offers.
I stopped paying on the two SC lots and I'm approaching the 90days late mark. I know other owners that are 5 months late and the bank isn't starting foreclosure. They are either backed up or realize the property is worthless.
The only other debt I have is a single mortgage on my home. I don't have anything else of value. My car is only worth about $4000.
I recently got married and my wife owns a townhouse that is worth about 100K and she owes 140K. We are currently renting that for a $250/mo loss.
We live in Georgia.
My Income: 106K
Wife Income: 40K
My House: owe 240K -- Appraised at 275K
Wife's Townhouse: owe 140K (two mortgages making a short sell very hard) -- Last one sold at 100K. Currently renting for 950/mo.
Two Lots: owe 280K -- Nearly worthless
FL Condo: owe 100K -- Traded for a value of 125K, but the last one sold at 100K. Currently renting for $750/mo.
Neither of us have a car payment. My wife has about 10K left on student loans. I know that remains after a bankruptcy. Neither of us have credit card debt.
Wachovia holds both loans for the SC lots. I anticipate they will wait 6 months or longer before foreclosing. They will eventually get a deficiency judgment and garnish my wages.
So my questions:
1) What would you do? I just want to start over and live a financially simple life. No more real estate for me. Our primary house is all we want to keep.
2) I'd like to file Chapter 7. Can I classify my debt as primarily business debt since they were investments?
3) If Chapter 7 won't work, what would be a typical outcome of Chapter 13 for me?