I am fairly new to realestate investing. I currently have 2 rental properties that have financially drained me to the point I can no longer afford to pay the mortgages. The properties are in my personal name and if they forclose will hurt my personal credit. I have tried to sell the properties to no avail. Do you have any recommendations to prevent forclosure. And if they do forclose, am i at risk of my personal assets being hit?
Your bank can go after your personal assets to satisfy the deficiency judgement if the sale of the properties can’t pay the mortgages. Your options are short sale and bankruptcy. You can also call the banks and ask them to renegotiate the debt to something you can afford.
I am currently 2 months behind in the mortgages. Should I file bankrupt now before they forclose?
Bankruptcy will not stop a foreclosure, just slow it down.
Another option is deed in lieu of foreclosure. Just give the homes back to the bank and walk away. BK will make it hard to borrow money for the next 10 years plus there are many hoops to get relief. The law doesn’t allow debtors to just walk away any more.