Loan Modification Forum - LoanSafe.org - View Single Post

yaya01 · 06-08-2009, 06:50 AM

All our business debt is personally guaranteed. In our case, we don't have to dissolve the business because we will continue to pay the business debt after filing the personal bk.

We have a $96k HELOC and still current on it because with the current interest rate the monthly payment is only $200. NACA would not do anything with it because it is with a different lender than the 1st. mortgage and I haven't tried to modify it because we just want to get rid of it. We are in active foreclosure since February so at this time I can only handle the stress of modifying the 1st. Once that is done or if we get foreclosed, then we will deal with the rest. Nevertheless, we have already consulted with various attorneys regarding the bk and got conflincting information so it is very important to check with more than one and do the research on-line.

Since our largest expense is the mortgage and we are not paying it to keep current on everything else, we decided to pay off part of our business equipment in order to reduce our monthly expenses. Big mistake, once the equipment is paid off it becomes a free and clear business asset and since we own the business, it becomes our asset. I'm glad we only paid off part of the equipment and the attorney said we can use the "tools of trade" exemption. Of course he told us not to make another move without consulting him first so for now, all we are working on is getting the 1st mortgage modified.

Once we get the modification or foreclosure, we will try to settle with the 2nd so we can file chapter 7. If they do not settle, then we would file chapter 13 to strip the 2nd and get rid of the personal credit cards. We don't have much personal debt but, for us, getting rid of the $96k is more than enough reason to file bk.

We are in Las Vegas, Nevada and up until a couple of weeks ago we thought that getting rid of the 2nd was going to put us at "water level" but our property value has gone down another $100k in the last 2 weeks alone. I think it is because of the type of property, half acre rural estate, because they are just not selling. Other parts of the valley have not had such a decline in the last month. So, we owe $516k and according to Zillow, it is only worth $270k-$375K. 30 days ago it was at $416k which is what it has been at for the last year. We owe CW $420k and NACA is asking for a principal reduction to $388K. We think the price will come back up to at least $400k but if they don't accept the NACA proposal or something very similar, we will be more than happy to walk away. Well, not more than happy because we have small children but, it just doesn't make business sence to stay.

Sorry for such a long post.

06-08-2009, 06:50 AM	#48 (permalink)
yaya01 Senior Member Join Date: Sep 2008 Posts: 95 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Naca dropped the ball!! All our business debt is personally guaranteed. In our case, we don't have to dissolve the business because we will continue to pay the business debt after filing the personal bk. We have a $96k HELOC and still current on it because with the current interest rate the monthly payment is only $200. NACA would not do anything with it because it is with a different lender than the 1st. mortgage and I haven't tried to modify it because we just want to get rid of it. We are in active foreclosure since February so at this time I can only handle the stress of modifying the 1st. Once that is done or if we get foreclosed, then we will deal with the rest. Nevertheless, we have already consulted with various attorneys regarding the bk and got conflincting information so it is very important to check with more than one and do the research on-line. Since our largest expense is the mortgage and we are not paying it to keep current on everything else, we decided to pay off part of our business equipment in order to reduce our monthly expenses. Big mistake, once the equipment is paid off it becomes a free and clear business asset and since we own the business, it becomes our asset. I'm glad we only paid off part of the equipment and the attorney said we can use the "tools of trade" exemption. Of course he told us not to make another move without consulting him first so for now, all we are working on is getting the 1st mortgage modified. Once we get the modification or foreclosure, we will try to settle with the 2nd so we can file chapter 7. If they do not settle, then we would file chapter 13 to strip the 2nd and get rid of the personal credit cards. We don't have much personal debt but, for us, getting rid of the $96k is more than enough reason to file bk. We are in Las Vegas, Nevada and up until a couple of weeks ago we thought that getting rid of the 2nd was going to put us at "water level" but our property value has gone down another $100k in the last 2 weeks alone. I think it is because of the type of property, half acre rural estate, because they are just not selling. Other parts of the valley have not had such a decline in the last month. So, we owe $516k and according to Zillow, it is only worth $270k-$375K. 30 days ago it was at $416k which is what it has been at for the last year. We owe CW $420k and NACA is asking for a principal reduction to $388K. We think the price will come back up to at least $400k but if they don't accept the NACA proposal or something very similar, we will be more than happy to walk away. Well, not more than happy because we have small children but, it just doesn't make business sence to stay. Sorry for such a long post.