Posted by michaela-CA on December 19, 2010 at 09:49:36:
Dave,
I may be misunderstanding, but I believe that she has other homes that are rented, as she mentions others that are paying for themselves. And she also mentions the bank being able to take ‘other homes’. n another post she also mentions that she needs the income (of the other rentals). So, I think she’s only specifies her home and the 2 lots, because these are the properties she’s carrying that don’t produce income.
Michaela
unloading property - Posted by shelly
Posted by shelly on December 18, 2010 at 07:36:14:
help needed,suggestions on what you would do.idue to long illness,ive been unable to work so my funds are being squeezed.my delima is i have properties,one im living in now and 2 pacels of land(1/2 acres each)all on the river.the run me 2200 for the home and approx 1100 each for the lots.i am thinking of bk but one att says i have too many properties and dont qualify.the others are paying for themselves.ive tried to market them,with creative financing but it hasnt worked.i am still current on them.the att says the bank can take my other homes due to cross ? something???and its my only sorce of income,so foreclosure may not be my best option either.i need help,i dont know if i should just let them go and try to start over,with no income thats hard.id like to hear what you would do?i never expected this.i know i messed up.
VA Bk exemptions - Posted by JT-IN
Posted by JT-IN on December 19, 2010 at 11:31:43:
VA has some fairly low equity exemptions for one filing Ch 7 Bk. 5K of equity in your pers res, 10K if married, plus 500 per dependent. So H & W with 4 kids could exempt 12K of equity; liquidated value under distressed sale, less mtg balance = equity. 5K pers property, 2K vehicle equity, 10k of tools of your trade.
The problem here is that w/o getting ultra detailed about your pers fincle situation there is no way to give detailed advice, and what you need is specific detailed advice. I would say that your Atty is correct, you likely ahve too much equity and too many assets to file for Ch 7. Doesn’t mean you couldn’t file but it does mean that the Trustee will take the assets.
Just to address one aspect here, what is the value of your pers residence, and what is the amoount of outstanding mtg on the property…? Also the same figures for the 2 lots…? With this info we could isolate on just those assets and discuss how to handle those. So if you were to sell you house, (and lots) in the next 2 weeks, what would you need to price them at to get them sold…? What do you owe on each…?
Cross Collateralization - Posted by JT-IN
Posted by JT-IN on December 18, 2010 at 08:54:45:
Shelly:
Sorry to hear of the problems that you are facing. In order to even touch on what is best in your situation, we will need more info here. Namely, since you are thinking of Bk, this is very state specific so it depends on which state you live in as to what exemptions you are able to claim in Bk. So where are you…?
Secondly, as to the cross collateralization, which means the lender has the right to claim against all your properties until the debt is paid in full… so if they foreclose on one they will likely foreclose on all. One of those things that you agree to when you get the mtg loan that isn’t really in your best interest, but we do things like that in order to get funded. Not much you can do about that now.
Lastly, if you are planning to sell some property then file Bk, you will need to understand a bit about the limitations there. There are look back provisions in Bk when assets have been sold in the past 120 days, or sometimes longer if sold to an insider. So timing becomes an issue; from the time of the sale/closing, dispersement of those funds, what they were spent on and then the filing date of yoour Bk. All must be coordinated precisely or else you could end without a discharge from the Bk court. It really sounds like any talk of filing Bk would be very premature since you are now current on the mtgs.
Re: Cross Collateralization - Posted by shelly
Posted by shelly on December 18, 2010 at 18:05:48:
im in va.ive never had to do bk and its very un nerving not knowing what could happen.thank you so much for taking time to help.im current not but time is not on my side.is there anyway to protect the other properties or where i can look for info?ive tried the net but havent found the answer for my situation.im to the point of selling personal items to make payments and need help fast.if the market changes i can possibly pull myself out.whats your feeling the way the economy is and when it might turn around?ive been told to stop payments but i dont know what to do at this point?thanks again
Re: Cross Collateralization - Posted by camgere
Posted by camgere on December 18, 2010 at 18:47:49:
You should always be very careful where you learn the truth. Verbal lies to intimidate someone are always deniable.
My car dealer insists that I have to pay CA sales taxe on the manufacturer’s rebate. I think Al Gore would call that a “convinient truth” (for the car dealter, He can say “oopsie” later when he doesn’t pay the sales tax on the rebate).
West Virginia is apparently a non-recourse state. This means they have no recourse other than getting back the house. If this is true and you have a purchase money mortgage, you can just walk away from the house. You would have to have agreed to cross collateralize and it doesn’t seem that you even know what this means. So I doubt you agreed to this.
People will often verbally lie to you knowing that later they can just deny it or say you mis-remember. “I’ll see you are killed you if you don’t give me $100.” was actually “I’ll be thrilled if you give me $100.” Written communication is much more reliable and if it wrong you can bring it to court and argue detrimental reliance.
You need real legal information. Is West Virginia a non-recourse state? Do you have a non-recourse loan? Did you cross collateralize? No reason to get excited until you know the facts.
Find the truth and be very careful who tells you.
Good Luck!
Re: Cross Collateralization - Posted by Dave T
Posted by Dave T on December 18, 2010 at 22:58:57:
Shelly is in VA which I believe is a recourse state.
I am assuming that for some loan to be cross collateralized, Shelly has to have a commercial loan secured by some income producing asset that she has not told us about.