Legal Question in Real Estate Law in California

My last payment on the SFR rental (San Diego, CA) was June 2009. I was in the process of evicting the tenants who stopped paying rent. They were evicted at the end of August. During September, I had to fix everything because the tenants who were evicted left the entire house and back yard completely trashed. It is rented again (Oct 1st), but because of the arrears, my lender (Bank of America) has sent my file to their delinquency department. I submitted financial paperwork to prove my financial hardship, in order to qualify for a loan modification. But BoA delinquency department said I do not qualify for a loan modification because I own another rental property, as well as my primary residence. My other rental property does not have positive cash flow. And I can barely make the mortgage payment on my primary residence. The only reason I am not in default with my primary mortgage lender is because I have stopped paying my credit card bills, in order to make payments on the primary mortgage. Should I allow the foreclosure to continue, or should I try to negotiate with the lender to see if they will allow a short sale? Is there any other options? Because my credit scores are now down, I cannot qualify to re-finance the property either. Please give my advice on the next step I should take. Thank you for your time.

Asked on 10/09/09, 11:18 am

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You are in a tough spot. Any chance you can find a partner to bring the loan current with you? BofA might allow that.

Answered on 10/09/09, 1:32 pm

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