pending foreclosures,judgement questions

[toomuchdebt]

Love the forum,Thanks to all!
My situation is different than most,i have eight rental properties that are all now pending foreclosure in new york(this is due to terrible tenants,huge medical billes and everything else you can name)..I am under contract to sell all of my property and am pushing hard but as i have been through in the past soemtime's things fall through and i may still lose some or all of the property.
My questions are as follows;

1)If i file bankruptcy after i have foreclosed what will happen with the judgement (defiency) that i am sure the bank's will get??

2)Should i wait and "stay the coarse" trying to unload this property or is this going to hurt me if i wait.

3)whil i don't care about my car will i be required to surrender my personal home?I purchased it over 5 years ago , i owe approx. $84k on it and it could appraise anywhere from $90k to $110k although it is currentlly assesed by the town for $95k.

I would appreceiatte any advice you all can offer

[Minnymouth]

You did not state whether you had a lot of equity in the properties (rentals) or not...... If you do not - let them have them back in bankruptcy.....

Your personal home you can maintain as long as you keep the payments current, and you said you had very little equity in it (that may be exempt.)

Same as your auto, if there is little equity in it, you can keep it - just make sure to keep making the payments on it.

Check on the this forum under Category 2 and see what the exemptions are for New York state...

Personally I feel that you need to contact an attorney - possibly 2 - for a free consultation and see what they offer as to options open to you and what you'll loose and won't loose. Would be time well invested.

You didn't say whether you were interested in filing pro se or thru attorney.

With all involved I would suggest an attorney..... that is very knowledge with bankruptcy and business bankruptcy... as you have rental properties....

Keep us posted,

[toomuchdebt]

Minnymouth,

Understood,My question is do i wait for the foreclosure's to run their course or file BK before they foreclose,

What are the PROS and CONS?

[SinkingFast]

If you have Contracts to Purchase on any of the properties, contact the Lenders immediately. They may put a hold on the Foreclosure of those properties to allow you time for your sales to go thru. Be prepared to back up your claims with written contracts, statements from Realtors, whatever you may have.

If you file BK before the Foreclosure reaches a point of no return, an automatic stay will stop the Foreclosure process. You can then include the property in the BK as an asset you wish to liquidate. You won't be responsible for any debt that might arise as the result of foreclosure and sale later by the Lender. The Lender will then have to wait until your BK is settled before they can proceed to claim the deed and sell the property.

You can allow the Foreclosure to run it's natural course, and include the Lender in the BK later. With a Foreclosure comes costs. The Lender has to advertise for a certain period of time. The Lender might have to have a Trustee execute the proceedings on their behalf. There may be Realtor's fees as well. All of that are costs that get charged to you, on top of the principal balance owed. If the Lender sells the property for less than the total of sale costs and mortgage, there's a deficiency balance from the Foreclosure charged against you. The Lender could put a lein on other assets you hold, such as your principal residence. But, again, you could include that debt in your BK if you file after the Foreclosure.

If I don't have that all quite right, I'm hoping someone will jump in and correct any errors.

On your personal home,........ If you have more equity than you are allowed in exemption, the Trustee may be willing to bargain. You pay some cash to the Trustee for the difference between your actual equity and the exemption limit. It may be a way for you to keep your primary home. But talk to an attny about that. You may be so close, between your mortgage and the exemption that it won't really be a factor. One attny told us if a Trustee takes an asset that has an exemption on it, the Trustee has be pretty sure the property will bring the price. The Trustee has to pay you the amount you exempted, off the top, out of the proceeds from the sale. And Trustees have costs to conduct sales. For homes, you can generally figure about 10%. So if your home brought $100K at sale, the Trustee would clear about $90K after costs. Then the Trustee would have to pay you the amount you exempted, whatever is allowed in your Homestead Exemption, and still have money left to pay your mortgage Lender too. That's gonna come down to the market appraisal, your actual principal pay-off balance, and your Homestead Exemption amount.

Definitely do as Minny suggested. Call several attnys and schedule appointments for consults. Consults are free and you learn something different from each attny you chat with. With each Consult, you'll learn new questions you need to ask during the next Consult as well.

[mscredit_repair]

do you want save the propertie at all

let me know I maybe able to help. pm me