I am about to foreclose on a rental property in philly. tenant not paying, coslty to repair. I have no cash flow. Realtors can not sell. Lender will not short sell. I have great credit (until now) and want to avoid BK. Any Advice?
See if the lender will take a deed in lieu of forclosure. They may agree to a settlement of the outstanding mortgage balance. they may modify the mortgage.
More likely than not however, the Bank will choose to foreclose. A foreclosure is worse than a Bankruptcy on a credit history in the opinion of many.
Can you get a housing organization in the community to take the deed from you and rehabilitate the property? Getting off the Deed is almost as important as resolving the liability for the note in many cases.
Bankruptcy may be the only recourse. Good Luck!
Disclaimer: This answer does not constitute legal advice. I am admitted in the States of New York, New Jersey and Massachusetts Only and make no attempt to opine on matters of law that are not relevant to those three States. This advice is based on general principles of law that may or may not relate to your specific situation. Facts and laws change and these possible changes will affect the advice provided here. Consult an attorney in your locale before you act on any of this advice. You should not rely on this advice alone and nothing in these communications creates an attorney client relationship. The opinions expressed herein are those of the author only and the fact that he has worked as an Assistant District Attorney; State Supreme Court Clerk; Special Assistant United States Attorney (Hawaii); Assistant Cornell University Counsel or Judge Advocate, United States Marine Corps should not be relied upon to assume that these statements reflect the policy of these organizations.
