Legal Question in Real Estate Law in California

Possible Repos

We have 6 rental homes and have determined that we can no longer pay the mortgages on 2 homes due to lack on tenants. We have tried to renegotiate the loans with no success. Our debt ratio is real bad. What would happen if we stop paying on these 2 homes? We want to try to avoid bankruptcy


Asked on 1/05/09, 3:52 pm

1 Answer from Attorneys
Terry A. Nelson Nelson & Lawless

Re: Possible Repos

You don't pay, they get foreclosed. Unless they were purchase money loans, you'll get sued for any loan deficiencies. That may force you into BK. Use a property mgmt company to get them rented if at all possible, at whatever rental they have. You offer them cheap enough, they'll rent. That might make your payments.

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Answered on 1/05/09, 4:43 pm


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