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What are all the legal ramifications of foreclosing on investment properties?
By Tom | June 3, 2008
socks asked:
We own 2 investment properties that we are unable to sell and can no longer make the payments on. If we foreclose on them, what are the consequences? Can the bank come after us for the difference once it sells them? Can they come after our house? Will we need to hire an attorney for anything or simply walk away and let the foreclosure goes its course. We do realize this will remain on our credit for 7 years but do not wish to file for bankruptcy. Thank you for your informed answers!
Christina
Topics: investment properties | 2 Comments »
June 4th, 2008 at 2:03 pm
Hire an attorney asap. Walking away is never, ever a good idea.
RE your own house: you definitely need an attorney for this one. Generally, it depends on who owns what. For example, your own residence might be owned by you personally, and the other properties as LLCs or some other entity.
June 7th, 2008 at 5:54 pm
These are all questions you should be discussing with the company you pay your monthly payments to. You have options other than walking away. Call them ASAP.