Legal Question in Credit and Debt Law in California

I am facing forclosure on the SFR rental I own in San Diego, CA. The last mortgage payment made was June 2009. During that time, I was in the process of evicting the tenants who stopped paying rent. They were finally evicted by the end of August. During September I was fixing the house, as the tenants who were evicted, left the place completely trashed. It is finally rented again (Oct 1st), but because of the arrears, the lender (Bank of America) has sent my file to their delinquency department. I have submitted all financial paperwork to their delinquency department to try to qualify for a loan modification. But the department said I do not qualify because I own another rental property, as well as my primary residence. The other rental property does not have a positive cash flow. And the only reason my primary residence has not gone into default is because I have stopped payment my credit card bills, in order to continue to pay my primary residence mortgage. Should I allow the foreclosure, or can I negotiate with the bank to see if they will accept a short sale? Please help me determine what my next step should be. Thank you for your time.

Asked on 10/09/09, 11:04 am

OCEAN BEACH ASSOCIATES OCEAN BEACH ASSOCIATES

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You should respond to the foreclosure and continue to negotiate. Contact me directly.

Answered on 10/09/09, 3:44 pm

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