All Forum Posts by: Roy Williams

Couldn't they do that without releasing the lien?

Hello friends, my dreams of a real estate empire are going up in smoke. I won't bore you with the details but I have a handful of properties that I stopped paying the mortgage on about 12 months ago. The banks started foreclosure proceedings on one or two.

But today I received a letter regarding one property where the servicer said the lender was releasing the lien on the property. I have two other properties with the same lender. Why would they randomly choose this one to release the lien on and WHY would they do that? It seems to be their only security especially since the loans are delinquent.

I stopped paying on one of the properties last August. Besides that I have never missed or been late on a payment of any kind.

I'm not too worried about my credit as it can be re-built but the stress of the day to day nonsense with my tenants even with mgmt company is what I need to deal with.

I'm mostly concerned that with my income (and my wife's which is $120k) I may not be able to file a 7. But given that ALL of my debts are business debts that can make the difference. I have no credit card debt. Our house, nor any of our vehicles are in my name at all.

Hello everyone. I own 9 lower income rental properties which I bought 6 years ago. It turns out that low income properties are not the way to go and a long story short is that most if not all are under water and not cash flowing. The stress is taking a toll on my health and I am considering stop paying all mortgages.
Once foreclosure happens I would consider filing chapter 7 bankruptcy to avoid any deficiency judgments (I live in NY).
I have no consumer debt only the debt on the properties which is all in my name.
I have a day job where I make approx $80k/year. Total amount of mortages in my name is approx $650k.

Any idea if I would qualify for a chapter 7??

Thanks

Hello Folks, was curious to see what the tax consequences are if you have an investment property foreclosed.

Are you taxed the following year on the full amount of the debt? Are you taxed on the differential between the what you paid and the current value/debt?

Thanks
Roy

So what were your results when you waived the white flag before the audit meeting?

I can tell you that in my personal experience, I purchased all my properties around 2006. Many of the sellers stacked the properties with tenants who weren't paying and then when I bought the place the economy tanked which magnified the problem.

My biggest issues are repairs (tenants trash the place) and making the tenants pay. Many of my tenants are on gov't assistance which is great because its a check to me but most pay cash (or really don't pay). Which means I'm constantly churning through tenants. Its a common practice for them to pay the first couple months then stop and enjoy the free ride for 3 months as I struggle to get the money then evict.

Hello everyone, while getting my docs together for the audit I reviewed my 2009 return and saw that the actual losses from the properties were less than $25k but that depreciation pushed me over the threshold. What a kick in the pants. Total losses including depreciation are in the neighborhood of $38-39K.

IRS is auditing my 2009 tax year...and I received notice this spring. I think anything prior is outside their scope.

Hi Steve, do you mind shooting me an email at: [REMOVED]

Thanks!