2nd Home being Foreclosed on Should I file?

[BD33]

Hello,

This is my first post here, read alot of posts, like this site very much. My story... Real quick, I had a "Flip house" go bad, market went south, got renters, they quit paying, trashed it, now it's unsellable. I don't have the funds to flip it again. I was "Debt Free" in 2006, now I am racked up again, because of this house. It is in foreclosure right now. I am barely getting by, I figured I might as well get rid of all the debt from this nightmare and get a fresh start. I filed chapter 7 in 2000, becuase of a divorce, I dont want to file again, but I have been told this foreclosure is as bad, if not worse than a bankruptcy, so I should file... Any thoughts?

[JRScott]

You might try to get a short sale before they get the foreclosure. It would save you and absolve any balance.

I don't think you can file again though yet for a chapter 7. I'm not sure since you would have filed previously under the old BK laws.

[keepmine]

It's 8 years between Chapter 7 filings.

[BD33]

Unfortunately, I have tried to sell to investors, I have tried to sell it for less than payoff, you name it I have done it. The location is the problem right now. So the 8 years, I am guessing it is to the day?

[HHM]

Unless you have other debt issues, BK may not be the best option for you.

Your post is a little unclear as to whether you have other unsecured debt. If you are otherwise solvent except for this investment property, then you should just let it foreclose, assuming your state allows deficiency judgments, most banks don't pursue them, they simply write it off and send you a 1099(c).

However, if you have substantial unsecured debt, in addition to this investment property gone bad, and you barely have a enough income to pay your basic living expenses, then BK would be a good option.

[BD33]

I do have unsecured debt now from the home. CCards adn sig loans. For the improvements and mortgage payments. i would to like to wipe clean and start again, if the foreclosure will hurt as much as the BK.

[HHM]

You need to put some perspective on this...your credit is now the LEAST of your worries. Since the foreclosure will NOT solve the other debt issues, then you should probably file BK. BK will take care of the house along with all the other unsecured debt.

Time for you to schedule consultations with at least 3 BK attorney's in your area and see what they have to say.

[BD33]

Thank you very much, that is what people have been telling me, but I wanted some better opinions from people who have been through it.
Also, I know getting a lawyer is the best way, but I filed chapter 7 in 2000 due to a divorce and did it myself with no trouble. I actually have a less complicated situation than I did in that one.
I have 2 Credit cards, a signature loan and the rental home that is being foreclosed on. I currently rent the home I live in and it is another state, so i think it would be ok for me to do again, but under the new laws and the timeframe, I am unsure..