What would you do after a foreclosure and a personal bankruptcy?

[Tracy Sharpe]

Situation:

My wife and I currently have 6 houses. One of the houses was purchased in California in 1995. In 2002, we moved from our smaller, first house to purchase a larger and more expensive house in California, which was a mistake. While living in our larger and more expensive home that we couldn't really afford (interest only loan), we purchased 5 new rental houses in 2005/2006 in Texas. In 2010, we filed bankruptcy and had a foreclosure on our larger and more expensive residence. After our bankruptcy in 2010, we moved from California to one of the rentals in Texas where we currently live. We kept the smaller house we purchased in 1995 in California but are having difficulty refinancing it, along with the others in Texas because of our bankruptcy and foreclosure. 

Predicament:

We are in the process of trying to get the loan of our first house in California modified for a second time through the lender so that we can keep it. It is cashflowing but if we don't get the loan modified again, we will have to raise the rent, possibly use personal funds to keep it, or lose it. 

Firstly, the value of the house in California is continuing to increase which is why we want to keep the house. Secondly, we do not want the house in California to go into foreclosure which would reimpact our credit. Thirdly, we are still wanting to increase our passive income by purchasing more property in Texas and we are also trying to refinance our properties but the previous bankruptcy and foreclosure are making it difficult. Lastly, all the houses in Texas do have a positive cashflow and equity. 

Action:

What would anyone advise?