2 Foreclosures Looming

Posted by Phillip on August 13, 2006 at 18:11:01:

I made some terrible financial decisions 2 years ago. I got hooked up with a company that bought builder closeout houses at market value then got investors such as myself to buy the houses with 80-20 loans and in turn sell them to end users with marginal credit for a guaranteed 10% market and about 200 a month cash flow. The trouble now is because I didn't do my homework I have 2 houses empty with no equity and the ARM's have kicked in to make it impossible to rent or sell the houses. I have tried everything from short sale etcs, nothing works. My question is if both houses (4 loans) go into foreclosure is it likely that the loan servicors will attempt to get a deficiency judgment or just report the forgiveness of debt to the IRS? I really have no other choice but foreclosures at this stage.

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Foreclosure exposure and DJ.. - RSI 12:36:29 08/14/06 (0)

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: I made some terrible financial decisions 2 years ago. I got hooked up with a company that bought builder closeout houses at market value then got investors such as myself to buy the houses with 80-20 loans and in turn sell them to end users with marginal credit for a guaranteed 10% market and about 200 a month cash flow. The trouble now is because I didn't do my homework I have 2 houses empty with no equity and the ARM's have kicked in to make it impossible to rent or sell the houses. I have tried everything from short sale etcs, nothing works. My question is if both houses (4 loans) go into foreclosure is it likely that the loan servicors will attempt to get a deficiency judgment or just report the forgiveness of debt to the IRS? I really have no other choice but foreclosures at this stage.


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