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What a mess I am in

Discussion in 'Stop Foreclosure and Tell Us Your Story' started by museumguy, Feb 1, 2012.

  1. museumguy

    museumguy LoanSafe Member

    Ok, I bought 6 rental properties in 2006. Two in North Carolina and four in Texas. I paid about $150,000 each for the two in North Carolina and between $120,000 and $130,000 each for the four in Texas. The two in North Carolina were with Countrywide and then Bank of America. One of those I was able to work a Deed in Lieu and the other just foreclosed. Bank of America was horrible to work with. They assigned an account manager to me who never returned my calls so I was not able to work towards a short sale option even though I had both houses listed.
    What is going to happen to me now? 1099? Judgement? Do I file bankruptcy?
    In Texas two of my houses have second loans now held by Real Time Resolutions. The firsts are with Chase who took them over from EMC. I was just denied loan modifications for the firsts on these two properties for not sending in the requested documents even though my account manager told me that all the required documents had been received. I listed one house for short sale and have gotten a good offer for $88,000. I owe around $125,000 for this house which includes the 2nd. The other house with a first and second will be listed soon for short sale. The other two in Texas have only first loans and I am trying to keep those. Hopefully the tenants won't stop paying rent.
    What will I face once I sell these homes in short sales? I need a direction and quick. I hope my worthless financial planner rots in hell for getting me to buy houses that never performed as she assured me they would.
    Thanks for any help.
  2. freedomwon

    freedomwon LoanSafe Member

    First of all, your financial planner never could have predicted the real estate market would take a HUGE nose dive as we've never seen in our entire lifetime! So, let's keep it real here. I understand your anger & frustration but nobody forced you to purchase 6 properties in 2006.

    In order for you to get some clarity on the situation, you must first identify which states are recourse vs non-recourse & research the foreclosure laws in each state where you own property. You will empower yourself by doing so.
  3. museumguy

    museumguy LoanSafe Member

    I understand my financial planner could not predict the future but she did misrepresent each property and what the rents would be for each and in the case of Texas she failed to inform me that there would be three separate property tax bills per property which ensured that from day one the rental income would not come close to covering the costs of each property as she had ensured me they would. Still my fault for not researching each property on my own and for trusting her as much as I did. So now I know and my education was very expensive. I was told by a realtor in North Carolina that Bank of America can issue a 1099 for each property and or obtain a judgement for each deficiency. In either case what is my best course of action now. I am still living essentially paycheck to paycheck. Thank you for your reply.
  4. Jeffrey L. Shurtliff

    Jeffrey L. Shurtliff LoanSafe Member

    You are in a bit of a mess. I would take and add up everything. weigh the pros and cons of keeping. Do you want to keep something? Seems like liquidation from the information you have been given is probably the way to go. Bankruptcy and any taxable deficiency is covered the tax code as the economic recovery act. Chapter 7 comes to mind here to end your nightmare.
  5. museumguy

    museumguy LoanSafe Member

    Keeping the homes in question is no longer an option. I will have 1 foreclosure and 1 deed in lieu in North Carolina and 2 short sales in Texas. This will happen no way around it for me. So what do I do now? Thank you
  6. museumguy

    museumguy LoanSafe Member

    Yesterday I received a 1099-A and a 1099-C one for one house and the other for the other house I had in North Carolina. Not sure why I received two different types of 1099. Both had a check in section 5 which apparently indicates that the bank can come after me for the deficiency. Does anyone have any info or advise on this and my previous posts? Thanks

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