:banghead I let a guy buy 2 houses in my name last year and he said he would pay the mortgages for the 1st year Seem like a good idea at the time because he was flipping the houses and making 90k+ on each. Now he has stopped paying and I am wondering if I should put the houses in my LLC before I file bankruptcy or does it matter? I was also considering that someone may want the deed/title but I don’t want to get stuck again. I just want to be rid of them and am looking for the best way out. I want to protect my primary residence as much as possible. :help
I dont know all the in’s and outs of your case but I do know that when you file bankruptcy there is a look back period. I think its 6 months. Good luck
What loan to value are these properties at?
Give us the numbers here.
House 1:
After repaired Value
Loan balance
Repairs
House 2:
same thing
And Betty12 is correct. The courts can reverse any kind of transaction at will within the past 6 months to 1 year.
You got frauded so hard. Any investor saying they are doing 90K on each flip is just ludricous crap.
House 1
Purchase price 450000
ARV 500000
Newly renovated no repair work needed
House 2
Purchase price 313000
ARV 330000
Repairs needed… Quoted 12000
Are you saying that If I can show the fraud they will reverse the loan?
No, I meant in a bankruptcy…
What are the loan balances, how much did the investor put up as down payment?
Talk to your lenders directly and tell them the exact situation. Tell them you got frauded completely and this is the situation.
Tell them you intend to sell the properties ASAP but may need to take a little loss to be able to sell them.
IMMEDIATELY have these properties up on the market and be AGGRESSIVE to get rid of these properties. Sell them, take a loss if you have to…
What are you, or what have you done so far with these properties?
Well… I honestly I attempted to take over the properties myself but found it very overwhelming. The tenants in the 2fam refuse to pay rent refuse to leave and threatened to sue. I got the tenants in the 3fam to leave but found out that the c/o wasn’t obtained at closing and the attorney also told me that there was a second mortgage from the previous owner that was not paid off so there is a lien. I had found new tenants, but the water meter was found in a different part of the city and the water dept told me that they were investigating that before they would shut the water on and now the neighbor kids have been dog fighting in the property probably selling drugs as well. I have called the police several times and frankly I just give up. I don’t know what to tell the bank because I feel like a fool. I contacted the FBI they say they are investigating and the consumer affairs say to contact the attorney general. I just want to dump the houses and be done without all the drama. The balance of the mortgages are the same as when I purchased them He put down a total of about 40K. To say the least I am stressed out :anon