My investment partner and I have been thinking about an exit strategy on our investment property for quite some time now. Our lender (Countrywide) has not been able to help us with a loan modification and we are currently about $100k in the hole (loan bal $380k property values about $280k). The loan bal goes up every month about $1k since we are on the option arm program. In our case, what would be the best best; short sale, foreclosing or filing BK? I was thinking about filing BK since my thought process was that with any option, your credit will be adversly affected and since I have other outstanding debt such as credit cards and other loans that it might be feasable to go this route.
It is my understanding that either option will stay on your credit report for 7 years... Also, by filing BK, the lenders can not send you a 1099 at the end of the year since you filed BK? Any thoughts? We would of course get an attorney to represent us in any of these exit strategies... Your comments would be greatly appreciated!!