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How do I get out from under this rental property?

Fountain Inn, SC |

I have a rental property that is also a mobile home. I have good renters in it now but it needs extensive repair from a leak. I would really just like to get rid of this thing, but mobile homes are not selling. Should I just let the bank foreclose on it? Are there companies out there that would buy a rental with tenants but that needs repair. (Probably $10,000 repair at most. I owe $55,000.)

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Attorney answers 1


You could just let the bank foreclose on it. If you did that, you would have two potential liabilities. The largest would be to your lender, since they would likely sell the MH for much of nothing and then get a judgment against you for the balance of the debt (called a deficiency judgment). In addition, if your renter has a lease for a specific term, and they are unable to rent a comparable property for the same amount, then they may have a claim against you for damages under the lease (if there is a lease). If you are judgment proof, then these possible judgments may not be a concern for you. Any such judgments could be dealt with in a bankruptcy, if necessary. Perhaps you should seek a consultation with a bankruptcy attorney to see whether or not that would be a good option for you at this time.