Legal Question in Business Law in Georgia

non bankrutcpy situation. my situation: I owned a business (land, equip, building) and closed it Mar 08. Since I've rented it out, but in Aug 09 the tenant filed bankruptcy, leaving me to pay the mortgage ($3500); taking needed money from the family. Am considering giving up the property, foreclosure. I have 2 home being used as collateral (2d place on lien). I am in good status with my homes' mortgage holders. Q - if i turn in my keys to the fin institution, what happens to my property with the fin institution holding it as collateral. Will they drop it or try to force me to sell.


Asked on 10/05/09, 6:52 pm

1 Answer from Attorneys
Scott Riddle Law Office of Scott B. Riddle, LLC

Your post is far from clear, but assuming the lender has a second lien on other real property, they have two basic options. If there is enough equity over the first mortgage, they can foreclose. If there is not sufficient equity, they can sit and wait on you to try to sell the property, and you have to pay them off, or there is enough equity to foreclose. Either way, if there is a personal guarantee, they also sue.

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Answered on 10/10/09, 7:05 pm


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