Any comments or help with thoughts on how to proceed would be greatly appreciated on this complicated scenario:
We built a home 5 years ago, live there for 3 years and then built a new home due to family size 2 years ago.
We tried to sell Home 1 for 12 months with no avail. We then tried to rent the property, but were taken by professionals that have since been incarcerated on our fraud case and others. Case still open and pending.
We then decided to list Home 2 on the market, as $9K in mortgage payments over two homes was killing us. We have had one or both homes listed now for 2 years, with no luck or offers on either.
Since our lender would not respond or help us until we went deficient, we made that choice on Home 2 and moved back into Home 1. We are now looking at CH 7.
Our attorney has a lot of work ahead of him, but feels that we can file CH 7 as business investment on this Home 2 property, wiping out the additional unsecured debts related in landscaping, finishes, etc.
My issues still at large are these:
1. Will we qualify for Debt Forgiveness Relief? Our CPA feels so, as this was our primary residence for 2007 & 2008.
2. Can we short-sell the Home 2 after we file BK on it?
3. Any issues retaining Home 1?
4. Are we better off with another solution? Right now the same lender that approved our loan at $775K 2 years ago, appraised the value at $550K 2 months ago. We don't want to get hit with a 1099 because of this, which is why the BK.
Thanks in advance.
We built a home 5 years ago, live there for 3 years and then built a new home due to family size 2 years ago.
We tried to sell Home 1 for 12 months with no avail. We then tried to rent the property, but were taken by professionals that have since been incarcerated on our fraud case and others. Case still open and pending.
We then decided to list Home 2 on the market, as $9K in mortgage payments over two homes was killing us. We have had one or both homes listed now for 2 years, with no luck or offers on either.
Since our lender would not respond or help us until we went deficient, we made that choice on Home 2 and moved back into Home 1. We are now looking at CH 7.
Our attorney has a lot of work ahead of him, but feels that we can file CH 7 as business investment on this Home 2 property, wiping out the additional unsecured debts related in landscaping, finishes, etc.
My issues still at large are these:
1. Will we qualify for Debt Forgiveness Relief? Our CPA feels so, as this was our primary residence for 2007 & 2008.
2. Can we short-sell the Home 2 after we file BK on it?
3. Any issues retaining Home 1?
4. Are we better off with another solution? Right now the same lender that approved our loan at $775K 2 years ago, appraised the value at $550K 2 months ago. We don't want to get hit with a 1099 because of this, which is why the BK.
Thanks in advance.