Legal Question in Real Estate Law in Pennsylvania

I own 5 rental properties, purchased 2 yrs ago. Many of the units are empty and others needing repairs. I can no longer maintain. Mortgages are current, I own a home and other assets. I have someone who says they can do a short sale to cash buyers. What are the implicatiions esp to my credit score, and current credit cards with balances. Can I anticipate an inc to a high apr?


Asked on 8/02/09, 1:24 pm

1 Answer from Attorneys
Matthew Nahrgang Nahrgang & Associates, P.C.

If you will not be able to maintain payments, or you are losing money by doing so, it makes sense to let the properties go. The purpose of real estate is either to produce a net gain on a later sale or net rent after paying all the expenses. If neither purpose is being served, there is no point in keeping them. They are simply a waste of your resources.

Once you become delinquent in any debt, your credit report will be harmed. You have to weigh a bad credit report versus the money you will save by not wasting it on the failed properties. Generally, mortgage companies merely foreclose and take the properties. They do not pursue you personally. Accordingly, the only likely consequence is a bad credit report.

I trust this answers your question but feel free to call or e-mail me on a free initial basis.

Read more
Answered on 8/07/09, 1:57 pm


Related Questions & Answers

More Real Estate and Real Property questions and answers in Pennsylvania