Foreclose than bk??

[toomuchdebt]

Folk's i posted a thread but i was not clear about my question previously,

Due to illness (and you name it) i am pending foreclosure on 9 rental porpertie's i own(i had more but have managed to sell them).I am under contract to sell them all but have been fishing for info. just in case i don't make the foreclosure timeling or something falls through.

Here are my questions and i live in NEW YORK;

1)is it better to foreclose and then file bankruptcy(tha bank would already have the property and i would only be bk for and defiency)

2)what happens with a defiency judgement ,can it be wiped out through bk?

3)i am very close on my exemptions for my home and i know i will be selling my car if i file,but what if the bank attach's the judgement to my personal home am i sr*##d?

I don't want to run down and file because i believe i can sell these things and have been doing so,i just hope i am not hurting my self by prolonging what might be inevitable.

I love the forum and appreciate any and alls advise.

[SinkingFast]

There is a poster here who works for a major, national Lender. HopeInHorizon I think is the screen name. He/She said if they are foreclosing on a property, and the buyer comes to them with a solid purchase contract, her Lender will stop the Foreclosure and give the borrower 90 days to complete the sale. The Lender get's the full amount due to them and has no costs associated with Foreclosure and sale of the property later.

If you have solid purchase contracts on the properties, contact your Lender(s) and see if they will work with you. They may stall Foreclosure to allow you to sell outright.

[seanpwarren]

I don't know the answer to your question, but I know investors in New york, who would buy your properties subject to, catch up your payments, and then pay you for your equity once they can refinance, which won't get you much money right away, but will get you out of your problems immediately, because with a subject to deal they can close in a couple of days. This is assuming these are residential mortgages?

[SinkingFast]

I don't know the answer to your question, but I know investors in New york, who would buy your properties subject to, catch up your payments, and then pay you for your equity once they can refinance, which won't get you much money right away, but will get you out of your problems immediately, because with a subject to deal they can close in a couple of days. This is assuming these are residential mortgages?

That's CRAP and I know it.

Before I ever went thru fresh paint, new carpet, new flooring, and new windows, I called several of those types of companies.

The companies that advertise, "We Buy Ugly Houses". Don't fix it up! Sell it to us type companies. Everyone, and I mean EVERYONE of those companies tried to screw us.

They pulled old comps as their basis for their offers on our house. And their comps weren't even comps. We had a stick built, free standing ranch. The "investors" pulled earth contacts that had sold and closed over 2 years prior to my contact with them. Every one of them told me I was wrong about the value of my house, and tried to get us to sell to them for less than we owed on our mortgage. Basically, they all tried to buy our house for about $100K under market value.

Investors are out to make money, not make fair deals. Simple as that.

[BassBoy]

I'm reminded of a saying my parents used to say to me (and still do).......If it sounds to good to be true, then it probably is.

I've seen these advertisements in my neighborhood recently. Actually, they are little signs (like For Sale signs) on the corner. Now I'm thinking, "That's your advertising?" Pfft! Anyways, I often wondered if their offer would even come close to market value, let alone, pay off the mortgage.........so...........thanks to your post, I now know it's true.

[seanpwarren]

I am in no way denying there are a lot of crappy investors out there. But there are also smart ones who will do there best to make a deal work out for both sides. If you find an investor who understands finance, which is the kind I was alluding to, they can take a property like that, take over the existing mortgage for now, sell it with owner financing to someone who can't qualify for a traditional loan at a slightly higher price and interest rate, then after a year or two when those people could now qualify for a traditional loan, they would refinance, and the investor would pay out the equity on the property. She would not get her equity right away, but if she could be flexible on when she got the payment, because the investor could take the debt load off of her hands immediately, a good investor would be willing to pay market rate, or at least close to it. Most good investors will give you almost full asking price, if you will be flexible on the terms of when you get the cash.

[SinkingFast]

I talked to THREE different ones of those companies.

All THREE musta gone to the same "investment" school.

All THREE offered right around the same amount.

FLEXIBILITY was never an issue as all THREE made ridiculous offers!

I looked at how much I would spend fixing the house up to get it "market ready" and decided if we could get out with the mortgage paid, plus a little bit over, it would be worth it to dump the house on one of those companies and run. Hubby had already moved on to a new job in a different state. The rest of the family didn't wanna hang around til Judgement Day trying to sell the house. Having the family together was much more important to us than huge profit on the house.

I am not kidding. All THREE of those companies offered us between $30K and $40K less than we owed on our mortgage. And, our mortgage isn't a 100% mortgage. We owe about 80% of the true market value. Finally I asked the last one how did he establish his value for the offer. He showed me his comps. When I saw he was using properties that weren't even comparable houses, and that had sold and closed over 2 years before, I knew I was dealing with SNAKES.

True comps are similar properties, a ranch for a ranch, a 2 story for a 2 story, or as close as you can get, AND that have sold and closed in the last 6 months. Pulling sales of earth contacts to compare to a stick built, true ranch ain't right. Earth contacts do not cost as much to build to start with and do not appreciate in value as much due to lower market interest in those type houses. Two year old prices in an upwardly dynamic market are meaningless. Our metro area had realized an average of 5%/year increase in property values for over the last 10 years.

You might know some legit investors. I met some thieves.

[seanpwarren]

I'm sorry you did, I know there are a lot of people like that out there. I've been in real estate about five years and I've met a lot of them too. And unfortunately I think there are a lot more that will try to just lowball and take advantage than work out the best situation for everyone, partially because most of them learned investing from info-mercial programs. I do know legit investors in most parts of the country though if you ever need one, or advice on how to be like one.