My partner and I have a real dog of a property in TX that we want to get rid of. The problem is that I do not want it to effect my personal credit.
Is there any possibility of forming a LLC or Corp. with us as partners and then BK’ing the investment to dump the property?
I suppose there probably is not, but any suggestions are welcome… (The bank will not short sale).
Thx - Tony
You are SOL if your name is on the mortgage.
Chances are that the bank wont let you get out of the mortgage. You could try creating the LLC and building the credit file for the business. That is actually what I am working on doing now (not so I can dump a property but so I can invest w/o a pg). This process may take you a while depending on how much the loan is for the property. I came across a program by someone named Thomas Kish. There seems to be a lot of bad things being said about him but I have learned a lot just from the people complaining about him(if anyone that has his program reads this I would appreciate any information that you can share from the program). I’m not sure how quickly you are wanting to do this but building the credit may take a while. You will also have to be careful because a court can set aside the entity (or pierce the corp veil) if they feel that fraud was involved or you just don’t do all of the corp formalities correctly. The bank will probably go hard at this because they wont want to take the loss. I find a very good lawyer and tell them that you want to protect yourself from this property and get their assistance with the process.